Marked increase in Southern Highlands prices over past two years: HTW

The Southern Highlands residential property market has seen a marked increase in activity in both volume and prices over the last two years.

There has been a noticeable increase in activity by investors, rental levels increased and are now steady, according to Herron Todd White's latest monthly market report.

The property advisory firm says that the increasing price trend is very strong in the lower to middle price brackets, up to $2 million.

Properties over $2 million are steady and also trading more briskly.

The tree change buyer relocating from Sydney is the main active buyer type HTW advised.

Traditionally the Southern Highlands property type is the older style character home (1890s to 1950s) that are within short walking distance of the town centres and local amenities.

HTW noted there has been good renovation and extension activity in these well located, traditional property types in Old Bowral, Mittagong and Moss Vale.

"There is also an emerging property type of suburban style modern and semi-modern homes on land sizes of 700 square metres up to 4,000 square metres.

"These modern homes appeal predominantly to young families."

It reported there has been good land sales activity in the now established residential subdivision precincts such as Renwick Estate (Mittagong), Bingara Gorge (Wilton) and more recently smaller more affordable lots at Darraby Estate (Moss Vale) and Nattai Ponds (Braemar).

"This uptick in activity has seen the emergence of residential infill developments in the townships of Bowral and Mittagong, with established larger land lots being subdivided into smaller allotments which are keenly sought after. 

"If interest rates remain at these historically low levels, we consider these market increases to be sustainable and should continue over the next six months."

Similar to the Highlands, there is now a mix of traditional property types in the Southern Tablelands. Previously, demand was for well located older homes and while these remain sought after, there has also been a push for modern family homes.

Goulburn has seen steady to increasing trends over the last five years.

"There have been good land sales in the new, modern residential estates in Goulburn, including the Belmore Estate, Merino Country Estate and the Mistful Park Estate," HTW noted.

"There is good construction activity of new homes being built."

Goulburn is rich in heritage architecture and there is also good renovation construction activity in these older character homes.

The main buyer type is the tree change buyer from Sydney or Canberra, the Canberra commuter and the Sydney investor.

The market in Crookwell is also stead, HTW advised.

The rural residential property market (two to 100 hectares in land size) is steady to increasing slightly throughout the Southern Tablelands, with good activity from Canberra commuters and rural lifestyle buyers from Sydney.