Spring Selling Season is about to hit the Singleton property market and, as Corelogic reveals, the nation’s real estate boom continues despite the NSW lockdown and any uncertainty around COVID-19.
Here are the facts
National home values increased 13.5% over the 2020-2021 financial year according to Corelogic data. This represented the highest annual growth rate in 17 years.
Here in Singleton we have fared well with the median unit price rising from $242,000 at the end of November 2020 to $250,000 in less than a year. And the median for houses in Singleton is up from $407,500 to $419,000 over the same timeframe, according to realestate.com.au.
Based on five years of sales, Singleton has seen a compound growth rate of 5.8% for houses and 2.1% for units with annual rental yields for houses is at 6.8% and units at 5.5%. Rental earnings for houses are at $440 per week and units at $325 which will appeal to any investor.
And the vacancy rate for rentals is sitting at a super low 0.78%, showing just how competitive it is for tenants right now.
The market in lockdown
Despite the lockdown, we’re continuing to see homeowner, investor and renter interest in the Hunter Valley and Singleton with strong demand from locals, those in the mining industry, and tree changers looking for a foothold into a better way of life out of the city.
Buyer demand here has been outstripping the number of properties available for sale. In fact, the number of properties on the market is relatively low. This is combining with several economic factors that fuel buyer demand: from low-interest rates to the fact, there are fewer restrictions on borrowing than a few years ago, as well as high consumer confidence and low unemployment. The result is a very competitive property market.
In the past month, we have sold 18 properties, and we have some amazing new listings recently hit the market including:
- 6 Goulburn Street — A charming four bedroom character home in Singleton.
- 1 Lambkin Street — A modern five-bedroom home on a 1006 sqm block in the Hunterview Estate.
- 9 The Glade — A five-bedroom home offering rural living close to town.
People still need to move house, so it’s business as usual despite the lockdown – but we are operating in a slightly different way. We’re running open homes by private, one-on-one appointments only, adhering to the social distancing and health restrictions, and QR code check-in requirements.
What could be next?
So, what are the prospects for Singleton’s Spring property market in the current NSW lockdown?
The ability to work from home, in combination with the pandemic has led the Australian population to leave the cities, with tree-change markets like Singleton and the Hunter Valley really benefiting.
Singleton is only 200km from Sydney and will continue to be in the sights of investors and those buyers who want to live in regional, lifestyle locations away from the major city centres, but still within a reasonable travelling distance.
If we look at the Corelogic data from previous lockdowns it shows that the property market tends to go into overdrive once a lockdown ends. Buyers and investors have spent the lockdown doing their homework. They don’t want to miss out and are quick to put in offers. All they are waiting for is more stock to come on the market.
So we could see an increase in property purchases and sales prices through the summer of 2021/2022, particularly as household savings rates remain elevated.
Right now, the signs are very positive. Properties are not spending long on the market. We’ve seen campaigns run as little as one week as properties receive genuine offers more or less immediately.
This means sellers should feel confident, but on the flip side it’s tough for buyers as the market is moving fast.
Thinking of selling your property now?
If you’re looking to sell, our advice is to take advantage of the current conditions and to list your property now, before restrictions get lifted. Contact the One Agency Lindy Harris team today.