Dubbo real estate soars to new heights with No. 1 Church St

The housing market in regional NSW is hitting new highs with massive demand for new property and record prices as city slickers flock to the bush.

The tallest building west of the Blue Mountains is about to transform Dubbo and help boost the region’s housing supply, but at a price that matches anything in inner Sydney.

A three-bedroom apartment in the yet to be built 13-storey Dubbo development sold recently for $1.77 million, a record for any single residential property in the city.

Billionaire businessman Gerry Harvey and local developers, twin brothers John and Kevin Walkom, are investing $35 million in the No. 1 Church Street development which will add 70 apartments to Dubbo, which like many regional centres, is grappling with a housing crisis.

An artists impression of the No. 1 Church Street development which shows how it will look from Church Street in Dubbo’s CBD.

In the two months since buyers were first given the chance to snap up one of the apartments in the 38.5 metre high complex, more than 34 per cent have been sold despite a lengthy Covid lockdown and no listing on major real estate websites.

The price of the three-bedroom penthouse with views of the Macquarie River stunned locals but is an indication of the shift of people from the city to the regions.

Bob Berry Real Estate is the local co-ordinating sales agent for the development and sales consultant Karen Chant said while the majority of buyers had so far been owner occupiers and downsizing retirees, the profile of purchasers was expected to change.

“I think as time goes on we’re going to see more investors, business professionals, singles and tree changers,” she said.

The expected view out towards West Dubbo from level 10 of the No. 1 Church Street development

Cheap borrowing costs thanks to low interest rates, coupled with better more reliable returns for investors on spends in the property market were part of the reason for growth in the regional NSW market, Mrs Chant believed.

Other factors have been revealed in a report released by the NSW Government’s Regional Housing Taskforce, which was recently set up to investigate problems in the market.

Bob Berry Real estate sales consultant Karen Chant in the No. 1 Church Street display suite. Picture: Ryan Young

The report revealed that for every two people moving to regional NSW from Sydney, only one was moving to Sydney from regional NSW.

“In 2019 the NSW Government estimated that the regional NSW population will increase by 400,000 to 3.5 million by 2041, requiring an additional 290,000 homes,” the report said.

“However, current scenarios indicate the population will grow to the high end of expectations over the next five to 10 years.

The report said regional NSW has recently had greater housing price growth than Sydney, especially for rentals, because of supply constraints and changing preferences.

An artists impression of the No. 1 Church Street development penthouse apartment.

According to the report, more diverse housing is needed in regional NSW to cater for an ageing population desperate for smaller properties close to services.

John Walkom’s development is meeting that need and it’s been embraced by the bulk of the Dubbo community despite suggestions locals in the regions do not welcome high rise developments.

“The majority of people who live in the community have come to live here because it’s a progressive community and they want to see it become more cosmopolitan,” he says.

“Over the years the liveability of the city has evolved, with theatres, galleries, cafes, restaurants, beautiful open public spaces, state of the art hospital, universities and a great TAFE college.

“It’s still that big country city but I think we’re becoming more cosmopolitan with a country feel. We’ve got those services you would have in a cosmopolitan city.”

John Walkom in the display suite which gives potential buyers a glimpse into the No. 1 Church Street development. Picture: Ryan Young

Mr Walkom said increasing the supply of housing was key to keeping growth in the market sustainable and manageable for owners and renters who have struggled to find properties because of a shortage of housing in regional NSW.

Platinum Property Group director Lachlan Cusack believes more developments like No. 1 Church Street will be built in Dubbo. Picture: Ryan Young

Platinum Property Group director Lachlan Cusack said it was hard to predict the impact No. 1 Church Street would have on the median Dubbo price, which currently stands at $409,000 and has increased by about 13 per cent over the past four years.

“If 20 units sell for over $1 million that’s going to have an effect on the rest of Dubbo as a whole,” he said.

“I think it’s going to set a precedent for what is to come and a benchmark for any other similar developments.

“People no longer want the big block, the 800 square metres in South Dubbo, there’s a shift in preferences in favour of higher density living but I’d like to see some more affordable options for the average buyer to be able to get into the market.”

Dubbo couple Eileen and Graeme Larsen in front of one of many vacant shops in the city's main street. Picture: Ryan Young

While Dubbo locals, like retirees Eileen and Graeme Larsen, say the price of an apartment in the No. 1 Church Street complex is out of reach for them, they welcome the extra housing option and hope it’ll help breathe new life into the city’s struggling CBD which is full of vacant shops.

Commenting on the record price for the penthouse apartment, Mr Larsen said “It’s definitely a lot more than we got for our house.

“I think it’ll be great for Macquarie Street. There must be a demand for it and I think it’ll help the businesses.”

The regional NSW housing crisis and potential solutions are among the issues up for discussion at the third annual Daily Telegraph Bush Summit set to be held virtually on October 29.

Register to attend live and for free.