Orange market to see an upturn
While there has been some weaker news coming out of regional New South Wales’ Orange, one property researcher believes the area is on the way back up.
Nexthotspot’s Andrew Peterson, in response to recent news about rental demand dropping, noted that the Orange market will soon see an uptick.
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Allowing Smart Property Investment to be privy to his research, he pointed to a rising vacancy rate in the area that would have some investors alarmed.
However, “A centre of 40,000 or so population is prone to these types of movements – when 100 dwellings double the city’s vacancy rate, the percentage change is dramatic," he analysed.
"Across the Sydney basin, a doubling of the vacancy rate would mean around 37,000 more dwellings are vacant, which would be a significant issue. In the big picture, 100 vacant dwellings in Orange is not a cause for concern.”
Having spoken with local real estate agencies over July, Mr Peterson was told that the vacancies have been increasing over the year and rents have softened. However, this was a result of the Cadia Underground transitioning from construction to operation, rather than a lull in the market.
Properties that had been achieving $420 per week, now appeared to be achieving $380, but this may see a pick-up on the back of multiple construction projects soon to come online.
He pointed to the sub-$350,000 investment point as the “sweet spot” for the market.
