Wagga median house prices up by 18 per cent new figures reveal

Wagga’s housing market shows no sign of slowing down, with new figures revealing the median house price rose by 18 per cent in the last financial year. Find out why.

Wagga’s housing market shows no sign of slowing down, with new figures revealing the median house price rose by 18 per cent in the last financial year.

Real Estate Institute of NSW CEO Tim McKibbin visited Wagga last week as part of the organisation’s travelling roadshow.

Mr McKibbin said according to REA Group, the median house price in the region had jumped to $621,500, which constituted an 18 per cent rise.

Wagga unit prices too had seen major increases - up 20 per cent - while rent growth had also been strong, up by 10 per cent for houses and five per cent for units.

“Currently Wagga is at an interesting stage because look at the market and look at what has happened,” he said.

“The pandemic has changed the playbook in terms of what we are seeing. People from Sydney are moving to the regional areas which has caused median house prices to rise because of the extra capital they are bringing to the table.”

Mr McKibbin said that the current housing shortage in Wagga was due to increased demand.

Wagga house prices are rising higher and higher according to experts. Picture: John Grainger

“With people coming from Sydney they are buying houses that normally are affordable for people in the area and they are paying twice as much for the house - that is why we are seeing this increase in the regions,” he said.

Mr McKibbin said there needed to be better collaboration with stakeholders, including council, to make sure development could match demand.

“We need better processes in the development application process so the developer is not halted and we can make sure we can provide the extra housing that is needed,” he said.

REINSW CEO Tim McKibbin. Picture: Supplied

Mr McKibbin said he doesn’t see the housing market slowing any time soon in the region.

“People will pay anything for a house these days due to the fact that we all need three things in life - food, shelter and water - so no matter the price, people will pay,” he said.

Local real estate agent Adam Humbert, of Kitson Property, also believes the house prices in Wagga will remain high into next year.

“Currently housing prices are holding firm and I think the market will remain the same into 2023,” he said.

“I don’t think we will see a change like that could happen in other bigger cities like Sydney and Melbourne because the shortage of housing is keeping prices high.”

House prices are expected to remain high in 2023.

Mr Humbert said the biggest concern in the market was the shortage of house supply, but high land prices were also contributing to the problem and said allowing more land to be built on would help reduce prices.

“If we can cut through more red tape and allow more accessible land for development, it will help in the lowering of prices because technically if we hold more land then we would see land prices drop and make the housing market more affordable in Wagga,” he said.

According to Mr Humbert, the suburbs where there has been extraordinary growth in the past financial year were the new suburbs in Wagga that included Gobbagombalin, Boorma and Estella - where he has seen houses snapped up for seven figures.

“The market is so high at the moment and we have seen the newer suburbs in Wagga see houses go for about the seven-figure range,” he said.

Demand is outweighing supply in the Wagga housing market. Picture: Supplied

Wagga City Councillor Amelia Parkins said she was trying to work with stakeholders to implement a number of measures to make sure the issue of housing shortages and affordability could be addressed.

She said the best way to combat it would be through having a similar model to Byron Shire Council, which has implemented an Affordable Housing Contribution Scheme.

Such schemes are one way to generate affordable housing. They provides detail about how, where, and at what rate development contributions can be collected from the landowner for affordable housing.

It works to ensure this contribution is used to provide, in perpetuity, affordable housing for very low, low and moderate income households in support of a socially diverse community.

Wagga Wagga City Councillor Amelia Parkins said a Byron Bay council model could boost affordable housing in the region.

“If we could follow the model that some councils have on offer, like Byron Shire council, it would help the issues but does our council have the resources and land available to do this? That is our drawback,” Ms Parkins said.

She wants to see council provide more education or promote free advice in launching development applications, and have a master plan of Wagga housing plans for the future.