Gunnedah's property bounces back with house hunters and investors creating a competitive market

Just three years ago Gunnedah's property market was facing one of it's worst ever years, but in 2022 it's the busiest it's been in the last decade.

Hennessy Real Estate owner, Ben Hennessy, said he believed the drawcard for many buyers hoping to call the shire home was the boom for primary industries.

"At the moment we're seeing record yields at the same time as record commodity prices," he said.

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"That's generating a huge amount of cash flow. It's also generating jobs as farmers expand, and then on top of that you've got coal prices at record prices, so the mining industry is able to expand."

With a vacancy rate of less than one per cent for rental properties, Mr Hennessy said people were looking straight to buy, which was uncommon in the area.

"The traditional approach was new people would move, rent for six to 12 months, get a feel for the area and the community and then look to buy."

But lockdowns are also believed to have something to do with the recent property boom.

"What actually happened was there was a fundamental shift in the psychology of society where the importance of the home has been reaffirmed," Mr Hennessy said.

"There's surprisingly a large amount of city country migration. They're onto our secret."

With homes being snapped up within a week, competition is heated between families and investors.

"For the cheaper stuff we're getting a huge amount of out of town activity," Mr Hennessy said.

"Even with the rate rise we've still got very low interest rates and it's a disincentive for investors to keep cash in the bank.

"They're looking for good yielding returns, which fortunately our area provides."

But things aren't looking up for everyone. Renters are feeling the pinch of a lack of appropriate and affordable housing.

"It's posing some real challenges for potential tenants looking to secure a property," Mr Hennessy said.

"We're getting multiple great applications, the landlords are spoilt for choice.

"But on the flip side, we have to break the bad news to some really great families and tenants who are just trying to put a roof over their heads."

With Mr Hennessy predicting this will be the norm for the market for at least the rest of the year, he said the best advice to those looking to buy was to get pre-approved and set out what you're looking for to avoid missing out.

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