Orange Property Market Update 2nd Half 2024
Orange, located in New South Wales, offers a vibrant community with excellent schools, family-friendly amenities, and a strong job market. Its picturesque surroundings, including vineyards and orchards, make Orange an appealing place to live.
Property Trends
In Q2 2024, Orange recorded a median house price of $690,000, and a median unit price of $475,000. This represents annual (Q2 2023 – Q2 2024) median price growth of 4.5% for houses and 0.4% for units. During this time house sales increased, by 20.8% (to 238 sales), but unit sales declined, by -6.3% (to 15 sales). Houses are highly demanded, with both median house price and number of sales increasing. Units are undersupplied, as the price increase is alongside lower sales. Now is an ideal time for owners to capitalise on their investments, especially as most of the new stock planned are land lots and there is a low number of ready-to-sell stock.
Project Development
Orange is set to see approximately $148.3M worth of new projects commencing in 2024. The largest residential project is the Sweetheart Drive Residential Subdivision ($9.3M), which will add 207 lots. Whilst there is incoming supply of ready-to-sell stock in Orange, most projects commencing construction in 2024 are land lots. The number of house sales in the past 12 months is much higher than the number of new houses planned, suggesting an undersupply; and thus, higher house prices, are expected.
Rental Market & Growth
House rental yields in Orange was 4.0% in June 2024, higher than Sydney Metro (2.8%). This was paired with a 3.8% increase in median house rental price in the past 12 months to Q2 2024, to $540 per week. The number of houses rented declined by -11.2% during this time, to 277 rentals, which indicates an undersupply in the market. The same pattern can be seen in the unit rental market, establishing Orange as an attractive investment option.
Vacancy Rates & Property Investment
Orange recorded a vacancy rate of 1.5% in June 2024, which is on par with Sydney Metro’s 1.4% average. Vacancy rates in Orange have held relatively steady over the past 12 months, declining the past 6 months. This suggests a tighter rental market. Combined with a vacancy rate that is lower than the Real Estate Institute of Australia’s healthy benchmark of 3.0%, this suggests quicker occupancy of rental properties. These key indicators suggest a conducive and sustainable environment for investors.
