Orange Property Market Update 1st Half 2024
Orange, NSW offers a charming blend of rural beauty and urban convenience, with excellent wineries, vibrant local markets, and a strong sense of community. The region boasts top-quality schools and healthcare facilities, making it an ideal place for families and professionals alike.
Property Trends
In Q4 2023, Orange, which in this report covers the suburbs of Orange, Molong, Cargo, Cudal, Manildra, and Clifton Grove, recorded a median house price of $680,000 and a median unit price of $550,000. This is a softening of -1.3% for median house price in the past 12 months to Q4 2023, and a growth of 16.0% for median unit price. Total sales during this time increased, by 17.7% (to 239 sales) for houses and by 25.0% (to 25 sales) for units. Confidence has returned to Orange, with properties in high demand – especially for units. There is currently a slightly more affordable house market, which is good news for first home buyers.
Average Vendor Discount
Average vendor discounts between Q4 2022 and Q4 2023 have tightened to -4.2% for houses and remained stable at -8.5% for units. Market conditions in Orange continue to favour buyers, as sellers are willing to accept below the first list price. This is good news for buyers, although house buyers need to act fast as Q4 2023 recorded the tightest discount in the past 12 months.
Rental Market & Growth
House rental yields in Orange were 4.2% in December 2023, higher than Sydney Metro’s 2.8%. This was paired with a 3.8% increase in median house rent for the past 12 months to Q4 2023, at $540 per week, alongside a -5.4% decline in the number of houses rented (to 105 rentals). The same pattern can be seen in the unit market, thus there is an undersupply of rental properties. This is good news for investors.
2+ bedroom houses have provided investors with +3.5% rental growth annually, achieving a median rent of $440 per week.
Vacancy Rates & Property Investment
Orange recorded a vacancy rate of 2.0% in December 2023, slightly above Sydney Metro’s 1.7% average. Vacancy rates in Orange have seen an increase in the past 12 months, most likely due to investors re-entering the market. That said, a 2.0% vacancy rate is still below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, suggesting that there is quicker occupancy of rental properties. This creates a conducive investment environment.
