One quarter of lower-than-average growth shouldn’t be viewed as slump in the Dubbo real estate market, Real Estate Institute NSW Orana Division acting chairman Bob Berry said.
The figures for the June 2017 quarter, according to the Domain Regional State of the Market Report, indicated the median house price decreased by 8 per cent to $337,750.
The report said over 12 months the median price had declined by 2.1 per cent.
Mr Berry said he wouldn’t dispute the Domain figures, but said he believed a three-month snapshot wasn’t an accurate indication of the overall health of the market.
He said April was a month that was affected by Easter and Anzac Day and this year had also slowed down ahead of the federal budget and a pending housing affordability proposal, which didn’t end up having any impact.
Mr Berry said the data he used from Core Logic worked on a 12-month rolling figure and longer term averages that provided a more stable
“I heard the word slump used in one report to refer to the Dubbo housing market but that’s just not right,” he said.
“The latest Core Logic figures I have for the 12 months to April 2017 show that the median price for houses is $355,000 and $255,000 for a unit. That’s a 4.41 per cent increase for houses and 1.53 per cent increase for units.”
Mr Berry said the figures that were taken from 743 houses over the course of a whole year were bound to be more accurate than the 180 houses sold in the June quarter.
The median rent in Dubbo was $330 a week, Mr Berry said, and for an investor they would get a return of 4.83 per cent on rent and 4.41 per cent on property for a total of 9.12 per cent over 12 months.
A high percentage of new dwelling contruction also wasn’t taken into account in the median value because they were land and builder’s contract packages, he said.
Domain chief economist Dr Andrew Wilson said even using Domain figures that showed the June drop, the Dubbo market was still strong.
"Although Dubbo’s housing market activity has declined over the June quarter, the region remains a sought-after destination for Sydney buyers exploring regional markets, which may contribute to price growth in the coming months.”
Mr Berry said house sales for June and July in Dubbo had been strong.