Median rent soars 17% in regional town's units

A new report has placed the New South Wales regional city of Dubbo in a growth phase that will see price growth over the next few years.

PRDnationwide's research department's Property Watch report has revealed figures showing sturdy increases in the town over the last three years, of 4.4% per annum, that doesn't yet show signs of letting up.

Investors would have seen median rents soar by 17.1% for a standard two bedroom unit over the last 12 months, while three bedroom houses saw a 7.1% increase.

"These rental gains can be attributed to the very tight market, with hot competition for rental accommodation from those working in the region as part of the mining and mining-ancillary industries," PRDnationwide research analyst Oded Reuveni-Etzioni said.

With demand for existing and new product remaining strong, a combination of limited stock on the market with this demand is producing a competitive environment that will keep prices rising, said Reuveni-Etzioni.

"The level of stock available for purchase in Dubbo is quite restrictive, with just 162 properties on the market in September - that equates to about three months' worth of stock," he said.

He noted that it's not just limited to cheaper stock, with activity at both ends of the market.

"Transactions over the $400,000 price point increased by 30%, which is indicative of the willingness of owner-occupiers and investors to take on higher levels of debt in the current economic climate," he said.

Jennifer Duke

Jennifer Duke

Jennifer Duke was a property writer at Property Observer

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