Cooling down: demand easing for Mudgee residential rentals
What a difference a year can make in real estate.
Just 12 months ago, as COVID-19 restrictions started to ease across the state, Mudgee received an influx of visitors like never before.
For many of these tourists, a quick trip to the region turned into a love affair, encouraging them to trade their busy city lives for Mudgee’s quieter pace (no traffic lights here!).
This sudden rush of tree changers, along with ongoing employment opportunities in the mining and hospitality sectors, drove housing demand, putting a tight squeeze on the market for several months. Rental properties were quickly snapped up, often spending just days on the market, and available properties were at an all-time low.
Fast forward to 2023, and Mudgee’s rental market has drastically changed.
Years of high demand and limited stock have subsided, and for the first time post-pandemic, the market has cooled down.
The return of overseas and interstate travel, coupled with a rise in interest rates and cost of living, has led to a decline in available jobs, particularly in hospitality, and a drop in visitation to the region.
All of this has contributed to a surge in available rental properties, with many investors also opting to convert their AirBnBs into long-term rentals.
At the start of February, there were nearly 70 houses available to rent across the region, including a large number of contemporary, four-bedroom houses. This is in stark contrast to the same time last year, when there were sometimes just a handful of available properties for lease.
However, it’s not all bad news. With the start of construction of two solar farms in the region, there’s likely to be an uptick in demand – nearly 350 people are set to be employed in the construction phase alone.
Interestingly, despite the increase in available properties, rental prices have remained stable over the past year, with a four-bedroom home still averaging around $600/week. However, with the market changes and decline in demand, it is likely we could see a dip in prices in the coming months.
But what does this mean for investors? Well, retaining high-quality tenants is more important than ever, particularly when the number of other suitable, available properties is high. Additionally, investors need to be competitive with their rental prices – an experienced agency, like ours, will help landlords set a rental price that is realistic for the current market conditions. Investors also need to be prepared for their property to remain vacant – houses are now sometimes taking weeks, rather than days, to let.
If you’re looking for a professional, efficient agency to manage your investment – whatever the market conditions – then contact Edwina Smith from Signature Properties Mudgee on 0429 328 086 or email edwina@spmudgee.com.au and experience the Signature Properties Mudgee difference for yourself.
