The Real Estate markets in regional centres such as Tamworth, Orange, Bathurst, Mudgee and to a lesser degree Armidale, are now being affected by factors going on in our economy such as low interest rates, COVID19 restrictions on travel, the popularity of working from home and restrictions on overseas travel.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
In Armidale, the low interest factor has had the effect of increasing residential sales from around the $500,000 purchase price and lower from those now renting, to now be able to purchase a residence because it is a much better proposition to pay off the purchase of a residence, rather than pay out rental charges, all because of the very low interest rates.
Also, the working from home factor has had an effect on central business areas (e.g. Sydney CBD's future occupancy).
During the period January 1 to November 30, in Armidale there were 337 exchanges of all forms of real estate - residential, land, building block, commercial and industrial property.
Rural residential blocks are still popular around most country towns including Armidale, with further subdivided blocks in demand for residential development.
Read also:
With rural property sales, most people in the industry expected an avalanche of rural land or rural property to come on the market after the worst drought in living memory and the devastating bushfires. Also, the combined cost of buying hay mostly from long distances like Southern NSW and Victoria. The other option was to totally destock.
It was expected that a lot of rural property owners would really have had enough and go to the market. However, it has not happened. Many have posed the question if I sell, what do I do with the money? Low interest rates again!
Financial institutions are now also much more willing to back farmers, with a return to very low internet serviceability costs, long term outlook for low interest rates, strong commodity prices and a return to better seasonal conditions.
However, despite all of the above, we have seen some very strong neighbour to neighbour sales, based on the industry guide "next door is worth 20 percent more to the owner next door".
We are also seeing very strong cattle and lamb prices, all adding to the confidence to outlay funds making what is now a very strong market for productive rural property.
The industrial development adjacent to the Armidale Regional Airport is a welcome development. The first time serviced industrial land has been available in Armidale since the development of the industrial land at Acacia Park, at that time "out of site and out of mind" . Congratulations to those people and organisations who have made it a successful developed area.
