RENTAL properties may soon be in oversupply in Bathurst, with a glut of empty homes and units on the market, according to Bathurst Real Estate director Michael Whittaker.
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With booming Sydney property prices, many people have invested in Bathurst in recent years.
“The market has eased off a little at the moment and I think investors are being cautious,” Mr Whittaker said.
He said the 50 rental properties currently available through Bathurst Real Estate was significantly more than average.
“If it’s not an oversupply, it’s getting close ... it’s not terrible, but it’s not brilliant like it was five years ago,” Mr Whittaker said.
Despite this, he said real estate was a good long-term investment and, over time, property values would increase.
Raine and Horne selling director Grant Maskill-Dowton said there were more rentals available than usual.
“There’s a higher vacancy rate than in the past, but I wouldn’t say it’s an oversupply,” he said.
He agreed Bathurst had became the investment location of choice for many Sydneysiders, with most buying in the $450,000 to $500,000 price range.
“There was an influx of Sydney investors buying here ... especially in the higher end of the market,” he said.
And it is many of these higher-end properties that remain vacant.
“Around $300,000 to $400,000 is the ideal investment market in Bathurst and I think it still is,” Mr Maskill-Dowton said. “There has been a drop in the $450-plus per week [rental market], but I don’t think it’s impacted too much on the lower end.”
The Professionals sales agent Leanne Hurley agreed Bathurst had become a hot spot for investors in recent years.
“They just can’t afford to invest in Sydney, so that’s why they’re coming here,” she said. “We can’t get enough $250,000 to $300,000 properties.”
She said they do not have more vacant rental properties than usual.
“Our vacancy rate is two per cent, which is not very high ... there’s no downturn here, it’s pretty steady,” Ms Hurley said.