We’ve reached the end of what has been a bumper year for the Singleton property market.
Housing markets across regional Australia have boomed this year off the back of a mass exodus from the capital cities. We take a look at what has happened in the market, how the numbers stack up and where the market is headed next year.
What do the numbers tell us?
Australia’s 25 largest non-capital city regions have experienced a record increase in house values in the past twelve months, according to CoreLogic.
There’s no doubt we’ve seen price growth here in Singleton. Median house values rose by 7.4% from $405,000 in October 2020 to $435,000 in November 2021. Meanwhile, the median unit price jumped by a whopping 19.6%, from $230,000 to $275,000, over the same period, according to realestate.com.au.
Houses here in Singleton have seen a compound growth rate of 6.7% based on the last five years of sales, while for units, it was 6.1%. Investors will be interested to know that the average house rent is now $450 per week, with an annual rental yield of 5.2%, while units rent for an average of $350 per week with a rental yield of 6.6%. With a vacancy rate of just 0.94%, according to Real Estate Investar, rental properties in Singleton remain in high demand.
What happened in the market this year?
This year’s regional property boom was fuelled by people leaving the big smoke in droves. With more people switching to remote working, net internal migration to regional Australia hit record highs as big city dwellers fled lockdowns and high property prices. Low interest rates and easy access to credit, as well as household savings boosted by travel bans, also contributed to the rush on regional properties.
Price rises and strong selling conditions were driven by a gap between demand and supply, with more buyers than there were available properties for sale. CoreLogic is reporting that property listings across regional Australia are currently 37% below the five-year average, while house sales are sitting about 24% above the five-year average. Time spent on market and vendor discounting rates both fell, reflecting the strong buyer demand and low stock levels.
CoreLogic reports that the most popular regional areas this year were coastal or lifestyle markets within two hours or so of a capital city, like Singleton, and our experience this year attests to this. My team and I have had a big year, selling 104 more properties than our closest competitor to date, and we’re proud to have set some incredible sale records along the way. One of the highlights includes the sale of 14 James House Close in Singleton Heights for $850,000, well above the suburb’s median house price of $470,000. The vendors, who were a pleasure to work with, were delighted with the way we marketed their property. Best of all, they were thrilled with the result, which exceeded their expectations.
Where will the market go in 2022?
A new property report from Canstar, called Rising Stars, has named Regional NSW as the number one area in Australia when it comes to prospects for future capital growth, naming the ‘exodus to affordable lifestyle’ trend as the driver behind high demand and rising prices here.
In the report’s ‘ten best suburbs in regional NSW to invest in 2021-22’ list, Singleton Heights comes in at number seven. Along with Cessnock, it is the only Hunter Valley address to make the list. The report cites major new infrastructure projects, low vacancies, rising rents, yields around 5% and a rise in sales activity as reasons to invest in the area.
CoreLogic, meanwhile, is predicting that as more workplaces transition to permanent working from home arrangements, regional areas within reasonable commuting distance of the major capitals, like Singleton, are likely to remain the most sought after into the new year.
As the data shows, there’s never been a better time to buy, sell or invest in Singleton. If you’re thinking of making a property move in 2022, get in touch with my friendly team today.