Ensure you never miss an issue of the
real estate business bulletin
Rental demand drops in Orange after mining boom

Rental demand drops in Orange after mining boom

by Brendan Wong 0 comments

Agents in Orange have reported a decline in rental demand, owing to the departure of a large number of mining contractors following a two-year boom in the town.

Peter Mitchell of Peter Mitchell Property Management said the market was simply returning to its original state.

He explained the recent mining boom had caused an increased demand for rental properties, particularly serviced apartments and furnished properties.

“Rather than them being in a motel, the [subcontractors] rented a house. So owners went out and furnished them and, say the house was rented at $400 a week, as soon as they put furniture in, it went up to $700 to $800," he explained.

“At the end of the day, it’s just back to normal. No one is losing. Some of these houses have still got furniture in them, where they’re still trying to rent them as furnished accommodation and it’s just not going to happen.”

Mr Mitchell estimated that 30 per cent of available properties were either furnished or previously furnished.

He said he had properties that had been on the market for a fortnight that he would seek to lower the prices of.

“You’ve got to be realistic and as another month goes by, I think the owners will become realistic because they’re going to have to,” he said.

Director of CENTURY 21 Combined Orange Andrew Vogler agreed with Mr Mitchell, saying the market had corrected itself.

“The rental market has always been pretty good in Orange,” he said. “Two years ago, when we had the influx of these construction workers it did push the rental prices up and they weren’t at sustainable levels.

“There are still plenty of people looking for rental properties, but landlords need to be realistic with the current market when they are setting their prices.”

Mr Vogler said he also noticed an increased number of serviced and furnished properties on the market during the boom.

“They were getting really good money and you could get a three- to four-bedroom home anywhere from $600 a week to $1,000 a week for a serviced apartment,” he said.

“It was always going to be a short-lived thing and we made a conscious strategic decision not to go down that path.” 

Rental demand drops in Orange after mining boom
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
An industry where the resilient succeeds

Tim Heavyside believes that a strong support team and good foundations are paramount to success in the real estate industry, and with regu...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?