The median house price in Dubbo has jumped a massive 48 per cent in the last ten years with one real estate agent saying growth could have been stronger but for the drought.
A realestate.com.au report shows Dubbo's median house price had grown from $245,000 in 2009 to $365,000 in 2019.
Dubbo real estate agent Bob Berry suggested savvy investors would be better off owning a home in Dubbo than investing in a bank savings account.
Mr Berry said in the last 10 years demand for all categories of rental accommodation has remained strong, providing an incentive for investors to buy in Dubbo and also for owner-occupiers to buy as opposed to renting.
"The current record low interest rates are continuing to create housing demand from both owner-occupiers comparing mortgage repayments to rent, and investors attracted to the current investment return of 6.8 per cent for a house in Dubbo compared to the mostly less than 2 per cent for bank cash deposits," he said.
"I always resist long term predictions; however, if one looks at the modern Dubbo over the last 45 years, housing prices have never collapsed. There have been times when economic, seasonal conditions and commodity price collapse have impacted, but the market has survived. There is a saying about Dubbo housing; it doesn't boom and doesn't bust."
Dubbo real estate agent Matt Hansen said even while faced with a crippling drought, the Dubbo property market continues to hold its own.
"In November, our office saw offers from buyers accepted on 16 properties which is a record number of sales inside a month for our team," he said.
"Being the gateway to Western NSW, one can only wonder what level the Dubbo property market would be at if it had the added strength of several decent seasons behind it in recent years."
"Dubbo remains on the radar of investors from across Australia, with growth predicted to continue well into the next decade."
Smaller towns in the Dubbo region showed moderate median house price growth.
Narromine's median house price was $190,000 in 2009 and is now $240,000, and Wellington's was $129,000 in 2009 and is now $150,000.