Mildura property buyers affected by availability of credit: HTW residential

Staff reporterMay 24, 20200 min read

The Sunraysia market is driven by a number of influences, particularly local population growth, employment prospects and interest rates, according to a recent Herron Todd White (HTW) residential report. 

The current COVID-19 epidemic is going to have a negative impact on key drivers, so it will be interesting to see what impact this may have on the property market in the short to medium term, the valuation firm said.

The HTW report suggests the availability of credit also affects the number of buyers.

"Our key horticultural industries have been one of the main drivers of local economic activity. Growers have been busy developing new plantings of table grapes, citrus and almonds, which has had a significant flow on effect through our economy. Our local service and industrial industries have benefited from the stronger confidence," the valuation firm said. 

"Investors are generally purchasing lower priced properties due to high rental yields and an attractive entry point into the market." 

These include older dwellings that have yet to receive any significant recent renovations as well as units that are low maintenance and provide an investor with high rental yields.

A four bedroom house situated close to Mildura CBD was sold for $290,000 in April.

The 2 River Parade home (pictured below) comes with spacious lounge, fully appointed kitchen with adjoining meals area, and rear yard.

The rear yard allows for an extension or landscaped gardens. 

Higher priced properties are predominantly purchased by upgraders as well as people downsizing from out of town into large, high end homes but usually with a smaller, easier to maintain allotment.

A resort-inspired family home in Nichols Point was sold for $900,000 in March. 

The 2 Forrester Court house (pictured below) comes with four bedrooms, gourmet kitchen, vast living spaces, and triple garage. 

It also features fames room, theatre room, heated pool and tennis court. 

"The stronger rural land values over the past three to four years have allowed many retired farmers to be able to afford better standard homes in their retirement than was previously the case," the valuation firm said. 

Note regards COVID-19
This edition of Month In Review had its topic defined in late February with submissions from our offices collated through to late March. During this period, shifts in the social and economic landscape due to COVID-19 became increasingly dramatic, as demonstrated by the varied information provided by offices over the course of three weeks.
This month’s residential theme on baseline property market drivers remains a common thread, and provides an indication of what influences to monitor as the property sector recovers post-crisis.

Staff reporter

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