Dubbo housing market still in strong demand despite high interest rates

Despite interest rate hikes, demand for housing is still strong, though many people's borrowing capacity has been reduced.

SJ Shooter Real Estate managing director Ms Shooter said buyers are still eager to buy, though they may potentially be shopping in a different price bracket.

"We're fortunate in Dubbo, that our market has consistent growth, and remains more affordable compared to metro areas and other large regional centres," she said.

According to CoreLogic, with 12 month capital growth sitting at 21.59 per cent, now is as good a time as any to sell.

"We're noticing that some of the uncertainty caused by rate rises have caused some people to delay making the final decision to sell or buy, though we're still seeing a good number of new properties coming onto the market, and strong enquiry numbers and open home attendance," Ms Shooter said.

Ms Shooter described the past 12 months as a "roller-coaster", citing that this time last year they were still riding the wave of the pandemic boom.

"While we have had some quieter periods since then, we need to remember that the COVID market was not typical, and the market activity we're seeing now is still stronger than where we were at the end of 2019," she said.

"Dubbo is a consistently safe market for reliable capital growth, predictable rental yields and low vacancy rates.

"We know that our pipeline of state significant infrastructure projects in our region means demand for homes in our area is only going to get stronger."

Between 2010 and 2020, an average of 760 houses per year were sold in Dubbo while in 2021 there were 1014 houses sold and 2022 saw 941 houses sold.

"We've really seen regional areas come into the spotlight as offering the kind of lifestyle people want," she said.

With affordable housing, open spaces, a number of school and child care options, a strong and growing range of health care services, an average commute of under 10 minutes, and the connectivity of the airport, where you can fly direct to Sydney, Melbourne and Brisbane, makes Dubbo an attractive place to buy.

READ MORE:

"Living in Dubbo offers you more time, money and space for the things you love - it makes sense that people are noticing this and voting with their feet to experience it for themselves," she said.

Residents looking for accommodation will be happy to hear that 45 housing development applications were approved by the council in January and February, 2023.

This follows on from the 258 development applications that were approved in 2022.

While this number was down on 2021, which saw 329 applications approved, Dubbo Regional Council director for development and environment Stephen Wallace said the council had been resilient.

"The estimated value of approved application shows we are close to $242 million [between July 1, 2022 and February 28, 2023] so we are $40 million ahead of where we were last year, that in itself is a very good year, a resilient year," he said.

While single dwelling houses have dropped in the past month, Mr Wallace said given the current economic situation they were tracking "rather positively".

At the meeting of Infrastructure, Planning and Environment councillor Vicki Etheridge asked if the interest rates were keeping things behind.

"That is what the data would suggest, there is a cooling off, the value is being approved," Chief Executive Officer, Murray Wood said.

Mr Wallace continued to stay positive, saying that in the future when the economy settles the market will turn around "rather quickly".

"There is still a demand for housing in Dubbo," he said.

Our journalists work hard to provide local, up-to-date news to the community. This is how you can continue to access our trusted content: