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The Upper Hunter Valley is expected to continue its strong growth in the second half of 2020, with low vacancy rates and Sydneysiders looking for a green change acting as tailwinds for the area, an industry expert advises.
According to Raine & Horne Muswellbrook’s principal, Grant Jupe, a combination of factors including availability of work and population growth is helping guide the area.
“Despite the lockdowns and restrictions in the autumn, Muswellbrook’s mining industry is an essential service, so work continued as normal,” Mr Jupe said.
“Likewise, our agricultural services chugged away, along with work in the region’s thoroughbred horse studs and the abattoir, while the town’s retail industry continued to tick along despite the restrictions.”
The principal continued to explain that low unemployment means renters are starting to take the leap into home buying which will only aid property prices.
In the last month, Raine & Horne Muswellbrook has exchanged contracts on three properties, and there are another 12 properties under offer.
Mr Jupe also believes that the government’s latest stimulus package, which is an initiative that will provide $25,000 quickback for investors who spend at least $150,000 on a property, will also help stimulate property prices in the region.
“The government’s HomeBuilder grant of $25,000 is also helping drive enquiries for blocks of land, while the majority of first home buyers are happy to take advantage of the affordability of established properties in Muswellbrook priced between $200,000 and $350,000,” Mr Jupe said.
“Many young couples are earning good salaries in the mining industry, have saved hard and now want to get off the rental treadmill.”
Investors moving their money regional
Mr Jupe believes, due to superior performance, Sydney buyers who are looking for stronger yields are seeking out stable regional economies such as Muswellbrook for investment opportunities.
Sydney investors are pursuing properties in Muswellbrook priced between $200,000 and $350,000.
“This buys a very nice home and can deliver rental yields of 6 to 7 per cent,” Mr Jupe confirmed.
Using the example of 3 Wilson Street Muswellbrook, which is under offer to Sydney investor for $295,000, he said the investor visited Muswellbrook on a Saturday afternoon and made the offer on the spot. The property is earning a weekly rent of $350.
“Better still because we have a stable economy in Muswellbrook with healthy employment, rental property vacancy rates are less than 2 per cent,” Mr Jupe said.
Sydneysiders seeking a green change
Mr Jupe reported his firm has sold several properties to green changers from Sydney and Newcastle.
“These people are moving to Muswellbrook because they don’t feel comfortable in the city environment anymore,” he said.
“They are selling up for good prices in the cities and buying a comfy family home in Muswellbrook for $300,000.”
The adoption of remote working is also driving some of the migration to regional centres, Mr Jupe said.
“Over the past few months, many workers in the cities have discovered they can work from home, and therefore can move to regional centres such as Muswellbrook and take advantage of our real estate affordability. This intrastate migration will continue to fuel the predicted population growth for our town.
“The Hunter Expressway is another factor attracting city slickers to Muswellbrook, because the roadway means they’re just three hours from Sydney and 90 minutes door-to-desk to Newcastle.”
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