Young's appealing regional lifestyle maintaining unmatched demand

Regional areas like Young and surrounds have become increasing appealing. Photo: file
Regional areas like Young and surrounds have become increasing appealing. Photo: file

Twenty-six property sales in Young have eclipsed $500,000 in the six months to July this year. Six properties sold for more than $700,000, according figures from the NSW Valuer General.

Graeme Schneider at Raine and Horne Young has been working in real estate in Young for about 28 years.

He says he's never seen an increase in sales like the region's experienced in the past 12 months.

He says this had led to prices skyrocketing, but also a shortage on rentals.

"However, prior to this it should be remembered that during the first few months of Covid up until June 2020, sales numbers were at their lowest point. Once lockdown restrictions were first eased enquiry exponentially increased with regional areas being a popular destination," Mr Schneider said.

"This seems to be a global phenomenon as well. Up until December 2020 nervous landlords and property investors divested some of their portfolio which created a rental shortage, however, since then they have gradually returned to the market which hopefully will eventually ease this pressure. Similarly, commercial investors were spooked by expectations with rental holidays or reductions happening but confidence has now returned for them as well and you will find around town that many vacant premises in the CBD are gradually filling up."

Graeme Schneider.

Graeme Schneider.

Mr Schneider says lockdowns, lifestyle changes and changed work arrangements has increased interest in the regions.

"Covid lockdowns and forced lifestyle and work arrangements where you can work remotely have made people restless and realise that a city lifestyle is less attractive for them hence all the regional interest with lifestyle acreages being in strong demand.

"On the rural front every property sale appears to create a new district record price with one of the latest apocryphal sales of a large rural property selling for many tens of millions of dollars to a neighbouring landholder.

The NSW Valuer General's (VG) figures shows 26 sales in Young from January to July above $500,000.

Mr Schneider says that figure would be higher if it included the entire postcode area, picking up more rural transactions.

In the same six-month period, Young's Raine and Horne office has commenced 21 sales from $500,000 or higher.

"Not all as yet are included in the VG's report," Mr Schneider said

"This would indicate that this surge in demand will continue to show up in the transactional records for some time yet since the published figures lag the actual trend.

"As for the future I believe that sales volumes will remain firm whilst interest rates remain historically low.

"A potential rise in interest rates would be one negative factor but politically there doesn't seem to be any will to increase them yet for a while, well at least before the next Federal election.

"Covid lockdowns seem to generate more buying interest, there's been increased inquiry again lately, so I expect that once vaccination rates reach a level where travel restrictions are eased then people may transfer their focus to spending on travel and a little less on real estate," Mr Schneider said.

If you are looking to sell, he says there's no better time.

"Overall, however, it still remains a seller's market and for the foreseeable future there's no better time to take advantage of it if you wish to sell your property."