'Huge growth': the 'internal economy' making the Riverina a property hotspot
Stean Nicholls agent Kristian Hopwood explains why the "internal economy" of Albury-Wodonga is just one reason the larger Riverina property market stays competitive. Main picture supplied, secondary by Phoebe. . .
Stean Nicholls agent Kristian Hopwood explains why the "internal economy" of Albury-Wodonga is just one reason the larger Riverina property market stays competitive. Main picture supplied, secondary by Phoebe AdamsRiverina property is bucking national trends and outperforming other regional areas, a new report finds, for reasons agents say might surprise you. Subscribe now for unlimited access. or signup to continue readingAll articles from our website& appThe digital version ofToday'sPaperAll otherin your areaCotality'sPain and Gain Report, released in June, tracks the number of properties selling for a loss versus profit across the country. Analysis found the Riverina outperformed its regional counterparts, as 2. 6 per cent of all properties in regional Victoria sold for a loss, while Wodonga recorded only 0. 6 per cent. North of the Murray River, Albury's share of properties sold at a loss was 1. 3 per cent and Wagga 1. 7 per cent, against regional NSW's 2 per cent. Albury property sellers averaged profits of $315,000; Wodonga sellers $324,250; and Wagga sellers $355,000. Cotality head of research Gerard Burg said the lucrative resale results for the March quarter reflected the strong housing conditions of the past five years, but were not "a forecast of where the market is heading next". "Declining values will erode profitability in the coming months, but future performance will increasingly depend on local market conditions, property type and when a property was purchased," he said. While Ray White Albury North managing director Andrea Lever said registered bidders had decreased in recent weeks, first home buyer confidence was on the rise as "they don't feel they're competing with as many investors". One such property was a two-bedroom, one-bathroom Kotthoff Street home in Lavington, which sold to a Border resident at auction for $515,000 on June 26. This Kotthoff Street property in Lavington is just one of the properties going to emboldened first home buyers, many relocating from bigger cities to the Riverina. Picture suppliedRaine & Horne Wagga commercial director Craig Tait pointed out the high demand from investors before May was, in part, due to the budget changes being written on the wall. "It wasn't a secret that the government was going to put changes to [capital gains tax] and negative gearing - the six months before, everyone was talking about it," he said. Who is selling for a loss?The report found buyers who held their properties for less time were more likely to sell for a loss. Unprofitable sales in regional NSW had a median hold period of 4. 1 years, while regional Victoria's was 3. 7 years. However, Ms Lever said Albury-Wodonga was "bucking the trend massively". "I had a property in North Albury last month, it sold 12 months ago for $440,000 and I've just resold it for $620,000," she said. "Another of our auction sellers, they bought their property nine months earlier for $715,000 and we sold it for $805,000, so there's been huge growth. "Mr Tait said while "it would be very rare for a property in Wagga to incur a loss", any losses "would be in the upper end of the market". What shields the Riverina from national trends?Factors keeping the Riverina competitive and profitable lie firmly in its infrastructure and economy. Mr Tait said he was still fielding inquiries from city-dwellers looking for a tree change. "I was speaking to someone this week, in fact, who's looking to relocate his whole business because it's more expensive to maintain a business in the bigger cities," he said. "Some people are even working remotely from here for other businesses. "Before Stean Nicholls commercial director Kristian Hopwood made the move to the Border, he said someone explained to him the "internal economy" of Albury Wodonga is what sets the Twin Cities apart. "You can shop local, you can bank local, you can see a specialist, you can go from kinder all the way through to university here locally," he said. "We're obviously a great link between Brisbane and Melbourne, which is crucial to get our way out of logistics, which brings more employment and business. "Mr Tait said he had seen a broad spectrum of businesses, from light industry, trades to retail and cafes in the past two to three years. Plenty of in-land lifestyle appealThePain and Gain Reportfound lifestyle markets topped Australia's strongest regions, dominated largely by coastal areas such as Noosa, Queensland, and beachside or adjacent suburbs in Perth, Western Australia. Yet despite being deep in regional heartland, Ms Lever said the Riverina still has its own lifestyle drawcards, from winter snow just an hour away and summers spent on Lake Hume. "People really love the ease of taking 10 minutes to get everywhere," she said of the lighter traffic conditions. "Older people relocating here are looking at the medical facilities, then you've got families relocating and they're looking at the number of good schools we have here. "Mr Hopwood said the list included beautiful wineries. "Tourism hotspots like Bright and Beechworth put so much effort into making it attractive," he said. "Families have moved here after coming up every other weekend because they want to stay here. "More from Business and FinanceAs it happensBreaking news alertBe the first to know when news breaks.