According to a recent survey from Demographia, Sydney now has the second most unaffordable major-city housing market in the world. In response to the survey, Deputy Prime Minister Barnaby Joyce suggested investors and live-in buyers leave Sydney and the ACT and resettle in the bush.
Goulburn, a regional city in the Southern Tablelands of NSW, is particularly attractive to Canberrans because they can buy a new, four-bedroom home with two bathrooms on a large block for $450,000. The equivalent property in the ACT can easily cost north of $650,000.
By far, the biggest driver of the Goulburn property market has been Sydneysiders, said Allan McDonald, real estate principal of Professionals Goulburn. Many Sydneysiders are awash with spare equity in their homes and are looking for lucrative investments in the bush.
As for those who’re worried about returns, investors are assured a steady supply of tenants thanks to a healthy job market.
“Farmers have had probably three years now of exceptional cattle prices, and good seasons. The lamb market and wool market have been strong,’’ McDonald said. “That helps a town like Goulburn, because you have your farmers coming in, they buy new cars, they probably put a new kitchen in, renovate and put a new bathroom in and that gets the tradies operating. At the moment the tradies are flat out, particularly your builders.’’
Investors from Sydney are typically couples in their 50s who’ve paid off homes that were purchased 25 years ago for $250,000. These homes are now worth at least $1.5m.
Goulburn’s median house price rose 7.69% last year, according to CoreLogic. The city’s demand-to-supply (DSR) rating is also good, which means demand is ahead of supply, but not alarmingly so.
Related stories:
House Rents On The Rise In Most Capital Cities
NSW Exerpt From The 2016 December Market Report
