Powered by MOMENTUM MEDIA

Central West hotspot revealed

By Emma Ryan 20 July 2020 | 1 minute read

A regional city located 254 kilometres west of Sydney has been dubbed a property market to watch, with capital growth and rental income gains among the best of hotspots.

Central West hotspot revealed

Orange, NSW, is the property market-keen investors should be keeping a close eye on, according to Propertyology head of research Simon Pressley.

Mr Pressley and the team at Propertyology consider the city with a population of 41,000 to be one of the strongest markets in Australia, based on numerous research captured over the past five years. 

“For (both) capital growth and rental income growth, the property market in Orange NSW has already been one of the best in the country over the last five years,” Mr Pressley said.

According to the researcher and property enthusiast, the past five years have seen capital growth in Orange increase 38.6 per cent and rental growth, 15.2 per cent.

Advertisement
Advertisement

By comparison, Sydney has seen capital growth of 22.2 per cent and rental growth of 5.8 per cent over the past five years, according to Propertyology research, which found that Hobart, Tasmania, has been the only capital city to record higher growth in both capital growth (58.8 per cent) and rental growth (39.4 per cent) than Orange.

“38.6 percent capital growth over the last five years is superior to seven out of eight capital cities,” Mr Pressley said.

“A rental yield of 5 percent also means that, at a time when interest rates are circa 3 percent, investment incomes cover all holding costs. Plus rents have already increased by a significant 15 percent over the last five years.”

Mr Pressley added that the Orange economy is “one of the strongest in Australia”, further cementing its status as an enviable hotspot for investors looking to expand their portfolio.

“Even during COVID, the performance of the local tourism trade has been solid. Hotels and short-term accommodation businesses have had near 100 percent occupancy since Easter.

Tourism, agriculture, mining, manufacturing, health and education underpin the incredibly diverse economy of Orange.

“The growing economy will place additional pressure on Orange rents,” Mr Pressley said.

In conclusion, Mr Pressley said property investors in Orange are “very well positioned to ratchet up rents while enjoying another surge of capital growth”.

“Orange is one of many really strong regional cities that Propertyology describes as a ‘mini capital city’. They have good quality infrastructure such as modern hospitals, universities and easy access via their expanding airports. People are attracted to the calmness and high-quality lifestyle, great restaurants, cafes and food experiences using local produce,” he said.

“Propertyology helped some of our clients invest in Orange a few years ago. Right across Australia, there are umpteen great locations just like this. Investors would be wise to remove their blinkers and personal biases. You owe it to your own future to objectively assess fundamentals of every location.”

About the author

Emma Ryan

Emma Ryan

Emma Ryan is the deputy head of content at Momentum Media.

Emma has worked for Momentum Media since 2015, and has since been responsible for breaking some of the biggest stories in corporate Australia, including across the legal, mortgages, real estate and wealth industries. In addition, Emma has launched several additional sub-brands and events, driven by a passion to deliver quality and timely content to audiences through multiple platforms.

Email Emma on: [email protected]Read more

Central West hotspot revealed
Central West hotspot revealed
spi logo

Get the latest news & updates

Join a community of over 100,000 property investors.

Check this box to receive podcast updates

From the web

Recommended by Spike Native Network

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.