There is plenty of opportunity in the Orange rental market, where rental yields are getting stronger quarter on quarter and tenant demand is on the rise. This area in New South Wales has emerged as a key investment opportunity for property investors who want to ensure good returns.
The location is only a few hours away from Sydney but offers an attractive alternative to the highly saturated urban property market.
Rental Property Investment
Given the excellent metrics, Orange is quickly becoming a compelling investment option for seasoned and first-time property investors. The opportunities in Orange are the product of growing demand for property in regional hubs, with areas like Orange gaining attention for their stability and growth potential.
In general, Orange is an undersupplied market. Median house rent is on the rise. In the second quarter of 2024, median weekly rent for houses in the area reached about $545, which is a 2.8% increase year on year.
The combination of rising rents and reduced property availability in the area points to strong potential for investment returns. With an annual rental growth rate of 3.5%, Orange is solidifying its reputation as a lucrative opportunity for those in the rental property investment market.
Rental Market Trends
The rental market trends in Orange reveal a favourable investment environment, especially when compared to large metropolitan areas. For example, the rental yields in Orange are higher than those in Sydney.
In December 2023, Orange’s 4.2% rental yield significantly outperformed Sydney’s 2.8% rental yield for the same period. By June 2024, Orange maintained a 4% rental yield, continuing to hold an advantage over Sydney’s 2.8% rental yield.
The vacancy rate in Orange is also competitive, with a 2% rate recorded in December 2023. Although this is slightly higher than Sydney’s 1.7%, it reflects a healthier balance in the market, ensuring sufficient tenant demand without properties sitting empty for extended periods.
Maximising Rental Income
If you are planning on investing in Orange, there are several strategies you can employ to maximise your rental income.
Key among these is targeting well-located properties that cater to the local tenant demographic—either families or professionals. Securing a property close to schools, healthcare facilities and employment hubs in the town can significantly increase a rental property’s appeal.
Upgrading an older property can also yield a higher rental return. Simple renovations, such as modernising kitchens and bathrooms or implementing energy efficiency upgrades, can help justify a premium rental price.
The long-term view for investors should focus on the steady annual rental growth rate of 3.5%. This is a promising indicator of consistent income over the coming years.
If the strong rental yields and healthy tenant demand have piqued your interest in the Orange rental market, then contact us at WPG Advisory today. We will help guide and represent you through every step of the investment process.