Wagga Wagga Property Market Update 2nd Half 2024
Wagga Wagga is a vibrant regional city located about 460km southwest of Sydney in the Riverina region of New South Wales. Known for its rich agricultural heritage and its stunning natural landscapes. Wagga Wagga is also home to many urban conveniences and a thriving food and wine scene, making it an ideal place to live.
Property Trends
In Q3 2024, Wagga Wagga recorded a median house price of $595,000, and a median unit price of $375,000. This represents an annual (Q3 2023 – Q3 2024) price growth of 16.9% for units, whilst median house price has remained relatively stable. Comparing Q3 2023 – Q3 2024, sales grew by 2.0% for houses (to 302 sales in Q3 2024) and by 35.5% for units (to 42 sales in Q3 2024). There is a high demand for houses and units in Wagga, which suggests that now is a good time for owners to capitalise on their investment. A stable house price creates a rare opportunity for buyers, however, with a low number of new housing stock, this will not last. Thus, house-buyers must act fast.
Project Development
Wagga Wagga will see approximately $1.2BM of new projects due to commence construction in 2024. Most of these developments are infrastructure projects, including the Riverina Redevelopment Program ($1.1B). There are 18 units, 26 dwellings, and 281 lots planned, which will assist with housing stock in Wagga Wagga. That said, this is not enough. Thus, an undersupply is imminent; as is further house and unit price growth.
Rental Market & Growth
House rental yields in Wagga Wagga were 3.7% in September 2024, higher than the Sydney Metro (2.8%). This was paired with a 4.8% increase in median house rental price in the past 12 months to Q3 2024, at $505 per week. During this time, the number of houses rented declined by -3.1%, to 314 rentals in Q3 2024. Similarly, median unit prices increased by 8.1% in the past 12 months, at $400 per week. Unlike houses, the number of units rented increased by 7.6%, to 185 in Q3 2024. Overall, this suggests a highly demanded rental market, which is good news for investors.
Vacancy Rates & Property Investment
Wagga Wagga recorded a vacancy rate of 0.5% in September 2024, slightly higher than Wagga Wagga LGA’s 0.3% average, but well below Sydney Metro’s 1.6% average. Vacancy rates in Wagga Wagga have decreased in the past 12 months, signalling an even tighter rental market. Furthermore, a 0.5% vacancy rate is significantly below the Real Estate Institution of Australia’s healthy benchmark of 3.0%, thus quicker occupancy of rental homes in Wagga Wagga. This creates a conducive environment for investors.
