Southern Highlands residential market growth remains strong: HTW
The Southern Highlands market continues to show strong price growth, according to Herron Todd White’s latest April report.
The property valuation firm says that the average price across the Wingecarribee Shire increased by 8% in the four months to date to $879,000.
“Of note is the brisk rate of sale in the up to $1.5 million sector, most notably located close to the townships of Bowral, Moss Vale and Mittagong,” the report stated.
Herron Todd White says that the market continues to benefit from the ripple effect predominantly by greater Sydney buyers looking for affordability and lifestyle.
“New land releases in the region have seen an influx of purchasers ranging from first home owners to executive home buyers at price points from $300,000 to $800,000 and land sizes from 450 to 8,000 square metres.
"What is also evident with the influx of new land releases is the pressure to upgrade transport infrastructure in the region, with calls for additional direct trains to Central Station, road upgrades and the larger infrastructure projects such as the Sydney to Melbourne Fast Train gaining momentum.
"Major projects to accommodate the growing area is occurring," the report commented.
Wilton Junction has been marked as a priority growth area with more residential development expected Herron Todd White says.
“With respect to accommodating additional residents in the region, the recent announcement by the NSW Department of Planning that Wilton Junction has been designated as a priority growth area has brought the reality of the new township to accommodate up to 16,500 dwellings across the 4,175 hectare site located off the M5 East Freeway a step closer.
"Other areas earmarked for residential development include Tahmoor and Appin.
"Closer in to the existing townships of Mittagong, Bowral and Moss Vale it is anticipated there will be limited releases of land predominantly restricted to resubdivision of appropriately zoned larger lots,” the report remarked.
"Being one of the regions to receive the NBN early has seen the emergence of commercial office developments in the past 12 months," the report stated.
The NBN is also helping the area with commercial office developments expected over the coming months.
“Being one of the regions in New South Wales to get early access to the NBN, there has been an emergence of commercial serviced office developments over the past 12 months, allowing for professional services personnel to have the flexibility of working locally and efficiently, an attractive alternative to the daily Sydney commute,” the report stated.
Herron Todd White says that there has been emerging chatter about the prospect of lenders further tightening lending criteria and increases in interest rates.
“This undoubtedly will have a cooling effect on the rate of sale in the marketplace, however we don’t foresee any major market adjustments in this case, with the exception of the rural and lifestyle acreage properties, predominantly located on the outskirts of the major towns,” the report observed.
A three bedroom house at 48 Erith Street, Bundanoon (above) has been listed with a price guide of between $665,000 to $730,000.
Similarly a four bedroom house at 8 Holly Road, Burradoo (below) has been listed with a price guide of between $1.45 million to $1.5 million.
A three bedroom house at 3 Langley Avenue, Mittagong (below) was recently sold for $660,000.
Similarly a four bedroom house at 19 Oldbury Street, Berrima (below) was recently sold for $1.4 million.
The Southern Highlands residential property market was running hot, according to Herron Todd White’s December report.
The property valuation firm says that strong price increases and quick selling periods have been evident across the entire region.
The main driver is the trend of second and third home buyers and retirees relocating for a tree change from Sydney and for the affordability.
"The townships of Moss Vale, Bowral and Mittagong have been the stand out performers."
It noted fully renovated or new properties with nothing left to spend are sought after.
The strongest activity is under $1.5 million.
A three bedroom unit at 2/41 Shepherd Street, Bowral (above) has been listed for between $900,000 to $990,000.
Similarly a three bedroom house at 602 Argyle Street, Moss Vale (below) has been listed with a price guide of $899,000.
HTW has noted that the fringe suburbs of Southern Highlands is also beginning to see strong activity
"There has been strong activity from first home buyers seeking affordable housing options across the fringe suburbs in the Southern Highlands, essentially the villages such as Robertson, Bundanoon, Colo Vale, Hill Top and Tahmoor that are removed from the three major towns of Bowral, Mittagong and Moss Vale."
Properties still sell under $700,000 in these perimeter suburbs.
"If interest rates were to dramatically rise, then pricing levels will decline.
"If interest rates remain at low levels, then we anticipate that pricing levels will plateau.
"There are similar trends evident in the Tablelands, with good land sales and new home construction activity in the new and modern residential estates on the fringe of Goulburn including the Belmore Estate, Merino Country Estate and the Mistful Park Estate," the report advised.
New land releases are trading for $200,000 to $250,000, with house and land packages ranging from $500,000 to $600,000.
Likewise some of the villages between Sutton Forest and Goulburn, such as Marulan have seen an uptick in first home owner activity, with new land releases being quickly absorbed by the market in the $160,000 to $190,000 range for 1,000 square metre blocks.
The Crookwell village is also seeing good buyer activity and price growth.
“We see strong buyer activity from first home buyers, second and third home buyers and retirees.
"We are also seeing strong interest from Sydney investors in Goulburn."
It noted part of the attraction here aside from lower entry price is ease of access to the Sydney-Canberra freeway.
Many buyers will commute to Goulburn, Canberra or back up to Moss Vale and Bowral, the report stated.