Wagga Property Market Update 1st Half 2024
Wagga Wagga offers a vibrant community with a rich cultural heritage and stunning natural beauty, making it an ideal place to call home. It's beautiful parks and recreational facilities offer plenty of opportunities for outdoor activities and relaxation.
Property Trends
In Q1 of 2024, Wagga Wagga recorded a median house price of $597,000, and a median unit price of $394,500. This represents annual (Q1 2023 – Q1 2024) median price growth of 4.7% for houses and 17.1% for units. The total number of house sales decreased between Q1 2023-Q1 2024, by -11.4% (to 239 sales), but increased for units, by 22.6% (to 38 sales).
The house market in Wagga Wagga is undersupplied, as there are less sales and price growth, whereas the unit market is highly demanded (higher sales and price growth). The market is resilient despite higher interest rates, making now an ideal time for owners to capitalise on their investments.
Average Vendor Discount
Average vendor discounts between Q1 2023 and Q1 2024 have slightly tightened, however they have remained at a discount of -3.8% for houses and -2.2% for units.
Market Conditions
Market conditions in Wagga Wagga continue to favour buyers, where vendors are willing to accept below the initial listing price. Thus, despite median price growth in the past 12 months, there are still opportunities for buyers.
Rental Market & Growth
House rental yields in Wagga Wagga were 3.5% as of March 2024, which were higher than Sydney Metro's (2.9%). This was paired with a 2.1% increase in median house rental price in the past 12 months to Q1 2024, to $480 per week, and a -3.9% decline in the number of houses rented (to 464 rentals). This suggests an undersupplied house rental market and establishes the area as an alternative and more affordable investment option to Sydney Metro.
4+ bedroom houses have provided investors with +3.7% rental growth annually, achieving a median rent of $560 per week.
Vacancy Rates & Property Investment
Wagga Wagga recorded a vacancy rate of 0.6% in March 2024, which was well below Sydney Metro’s 1.1% average. Vacancy rates in Wagga Wagga have declined over the past 12 months, which suggests a tighter rental demand. Furthermore, vacancy rates in Wagga Wagga are well below the Real Estate Institute of Australia’s ‘healthy’ benchmark of 3.0%, indicating quicker occupancy of rental properties. This suggests a conducive rental market for investors, even if property sale prices, and thus entry prices, have increased in the past 12 months.
