Domain figures show Wagga property market stands strong against Sydney's steep downturn

Figures released from Domain’s House Price Report showed surrounding markets in the state are standing strong despite Sydney amidst its steepest property downturn. 

Professionals Real Estate agent Paul Irvine said Wagga’s market is a different story compared to Sydney. 

“The market crashing in Sydney and Melbourne is always making the news but Wagga is resilient,” Mr Irvine said. 

“Our market is strong and we are not influenced by these falling house prices. 

“We are in our own economic bubble, supported by the RAAF and Army base as well as the university.”

Domain House Price Report shows the median house price data for the 12 months to December 2018 in which Wagga experienced a 7.7 per cent increase in house prices. 

Over an hour’s drive south, Albury’s median house price increased just over one per cent but Yass Valley recorded a 14.7 per cent increase with a media house price of $556,000. 

Fitzpatricks Real Estate agent Helen Woodhouse said Wagga’s market has remained “quite resilient” because of the city’s strong economy and a transient population. 

“Having the Army and RAAF Base, as well as the university, provides the city with people coming and going,” Ms Woodhouse said. 

“Interest rates are also quite low and there are new developments across town, including Boorooma, Estella Rise and Lloyd Estate, which suit a lot of different needs and price brackets.” 

Ms Woodhouse said while Sydney house prices have fallen, they are still quite high especially for those trying to enter the market. 

“I guess people have been moving to more affordable markets because the prices are still so high and the entry level in the cities is still not quite achievable,” the local agent said. 

“People can afford to buy a brand new house in Wagga, so they might move to the regions to get started and then either choose to stay or move away once they gain some equity.” 

The report showed that Sydney’s house prices dropped 9.9 per cent over the year to $1,062,619. 

Despite local experts saying that banks tightening their lending after the Royal Banking Commission is affecting the city property market, Ms Woodhouse said she has not seen any changes in the residential market yet. 

“I haven’t seen any effect on that as yet and I think the banks are lending people the same amount of money as before, but they’re just tightening up their restrictions,” she said. 

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Property analyst Simon Pressley, managing director of Propertyology, agreed with Ms Woodhouse that banks are still lending money. 

“While property buyers now need to jump through a few extra hoops to get finance, banks are still lending money,” Mr Pressley said. 

“Borrowers just need to be prepared to provide extra information, especially about their household budget.

“The downturn in Sydney and Melbourne is a result of consecutive years of record volumes of new supply and affordability constraints.” 

Mr Pressley said Wagga’s fundamentals are driving a “positive” outlook for the city. 

“Propertyology’s research suggests that Wagga’s property market tightened in the second half of 2018, causing dwellings to be sold quicker, vacancy rates have reduced and property prices are rising,” Mr Pressley said. 

“The outlook for property markets in large parts of Australia, including Wagga Wagga, is as good now as it has been at any time post the Global Financial Crisis.

“Demand is being driven by improving local economies and affordable housing.”