Property supply lacking as demands increase in Bathurst: HTW

Around three quarters of all residential sales in Bathurst are between $300,000 and $500,000, according to Herron Todd White’s latest monthly market report.

The property advisory firm noted a correlation between the sale price and the average income in the area.

It advised the majority of home owners are able to service mortgages at these prices.

The size to which dwellings can be built is determined by this limitation in relation to the cost of construction.

In this bracket properties range from slightly dated 60 year old three bedroom, one bathroom dwellings to modern brick veneer four bedroom dwellings with an en suite.

At $500,000 such a dwelling could comprise over 200 square metres of living area alone.

An example would be a four bedroom home at 6 McLean Street (pictured above) that is for sale for $519,000.

HTW noted a new limitation is then reached in that there is a point when a dwelling can be too large for practical purposes.

"That corresponds with why the majority of properties at $600,000 or more comprise small acreage," the report said.

At the moment anything under $300,000 is being snapped up as soon as it is available. The reason that there are not as many sales in this price bracket is because fewer become available. Although new dwellings continue to comprise a large percentage of sales, this is influenced by the lack of listings that are currently becoming available in established areas.

"This would also skew the areas of higher activity, but not necessarily the level of change in value," the HTW report said.

"This is further influenced by the personal circumstances of purchasers determining the time frame available to allow location to be as important a determinant as the need for accommodation."