Rising rents and increased mining activity is luring investors to Dubbo, new research by PRDnationwide has found.
According to PRDnationwide research analyst Oded Reuveni-Etzioni there has been a recent drop in the number of properties listed for sale, which is in turn fuelling demand.
In the 180 days to the end of January 2012 there were 249 houses on the market – almost half of the usual number.
PRDnationwide Dubbo principal Peter Whalan said the decreased level of listings could be due to expectation of vendors seeing an upswing in prices and want to hold out to take advantage of that.
“Dubbo is about to enter into an exciting time with a lot of new development about to come on,” he said.
“Dubbo is well placed to cope with any increase in growth, with new land releases including The Outlook Delroy Park consisting of 400 blocks ready to come on to the market and two other estates to release building blocks.”
“Other big new releases soon to be announced will set Dubbo up for the place to be.”
Mr Whalan said smaller towns like Mudgee that are finding it difficult to cope with the rapid expansion in mining population growth are now looking at Dubbo to move to because of the infrastructure Dubbo has to offer.
The PRDnationwide Dubbo Market Overview shows rents for a three-bedroom house have gone up 4 per cent – with the rental market experiencing high activity and low vacancy rates.
“Investors are prevalent in the market, seeking dwellings in the lower price brackets with a gross yield of 6.5 per cent-plus,” Mr Reuveni-Etzioni said.
The researcher said strong employment prospects exist in Dubbo and surrounding towns and the newly gazetted Local Environment Plan creates investment certainty for developers, with many more residential lots expected to be released in 2012.
“Despite softer economic conditions in Australia and overseas, the Dubbo region has been benefiting from strong investment,” he said.