Property prices in the Central West have continued to soar in 2021, with Orange, Bathurst and Dubbo experiencing their highest median house price growth in 16 years.
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In Bathurst, homeowners have seen the value of their property increase by an average of $95,000 this year, as the city's median price skyrocketed by 22.4 percent.
In Orange, growth has been almost as strong, with median prices jumping by 17.9 per cent, according to Pricefinder data. In Dubbo homeowners have seen gains of 11.7 percent.
Of the three cities, Orange remains the most expensive place to buy, with a median price of $560,000, followed by Bathurst at $520,000 and Dubbo at $430,000.
The growth in the Central West is part of a huge property boom across regional NSW in the past two years linked to low interest rates and a shift to regional areas.
While there is talk of the boom starting to lose momentum, Bathurst agent David Chapman of Agent Chapman said he didn't see any heat coming out of the market just yet.
"I don't see the cooling of prices in the immediate future simply because Sydney buyers and Greater Sydney buyers are now able to travel to the regions - they're coming out in droves, but the number of properties to choose from are just not there for them at the moment.
"It's like seagulls fighting over a hot chip," he said.
"Buyers are being quite aggressive because they know they can't afford to be coming in with lowball offers, so invariably asking prices are being achieved and greater than asking prices."
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Dubbo agent and Real Estate Institute of NSW Orana division spokesperson Bob Berry said there was an 'insatiable' demand for investment property.
All time low interest rates meant property was a much more attractive investment than leaving money in the bank, and this combined with the post-drought surge in the rural economy, and Dubbo's continued affordability had helped drive the market there.
Despite Dubbo hitting an all time high median house price of $400,000 earlier this year and edging ever closer to $450,000, Mr Berry said it was still good value.
"When you think the average house price quoted by the Reserve Bank of Australia some two or three months ago was $835,000 - (Dubbo) is still affordable," he said.
Significant infrastructure development in Dubbo, including the $35 million Western Cancer Centre, the RFS Training Academy and construction of the Mindyarra Maintenance Centre, which will support the replacement of the NSW regional rail fleet, would continue to make Dubbo an attractive option for buyers, he said.
Property commentator Terry Ryder recently named Dubbo as one of the top 10 regional NSW towns to invest in 2021-2022 in Canstar's Rising Stars Australian Property Market Report.
"The rental market is tight in Dubbo and increases in rents and sales volumes are leading to a faster pace of price growth recently," Mr Ryder said.
In Orange, real estate agent Alistair Miller of The Professionals says the local market remains hot, with buyers who have missed out numerous times willing to pay more than they has planned to in order to edge out the competition.
He says Orange's strength was the diversity of industries that underpin the economy.
"To have domestic tourism, government departments, agriculture, mining, health care and education - you couldn't get a better six industries."
"And I think the reason why things are so strong at the moment is simply because at the next 30, 40, 50 years look so strong."
MEDIAN PRICES
- Bathurst: $520,000 (up 22.4 %)
- Orange: $560,000 (up 17.9%)
- Dubbo: 430,000 (up 11.7%)
- Parkes: $332,500 (up 7.3%)
- Forbes: $315,000 (up $6.1%)
- SOURCE: Pricefinder
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