Following a trend ignited in 2021, the property market across the Western Plains is continuing at a red hot pace, with recent reports showing that momentum hasn’t slowed. Research suggests, however, that the current climate may not be best suited for flipping houses. 

As the impending election looms closer with housing ranking high on the policy list, the once effective strategy of renovating houses for a higher and easy resale may not be the given it once was, with uncertainty on the horizon. 

Co-founder of BuyersBuyers - a national marketplace for buyer’s agent services - Pete Wargent said that there are two factors that could make life tougher for property flippers. 



“Firstly, as interest rates rise, there is less certainty about the market outlook, and a renovator could find themselves selling into softer market conditions,” Mr Wargent said. 

This week the Reserve Bank of Australia (RBA) warned that more interest rate hikes are on their way, following the first official interest rate rise since 2010, raising the cash rate from 0.1 per cent to 0.35 per cent. 

The effects were almost immediate, with Sydney markets seeing a slight decline from what was a significant uninterrupted increase. 

However according to analytics from HtAG, across the Western Plains there is little evidence of the same impact, with Bourke, Bogan, Gilgandra, Narromine and Warren Shires all seeing rises in property sales of around 2-3 per cent in 2022. 

The Warrumbungle Shire has far exceeded the rest of the Western Plains, clocking a growth of 11.82 per cent in sales in the same period. 

While momentum may not have slowed yet, however, the opportunity for a ‘fast flip’ could be well in the past, with global tensions wreaking havoc on the supply chain, and tradespeople with full books. 

“Construction costs are presently very high, so there’s also a tangible risk for over-capitalisation if property market participants don’t budget carefully,” Mr Wargent said. 

Figures from the Australian Bureau of Statistics showed that the prices of timber and steel have rocketed about 50 per cent higher, while other materials and services have seen the average cost of construction of a new home rise by 20 per cent from last year. 

“Obviously, projects need to be assessed on a case-by-case basis, but overlapping supply shocks have made access to construction materials at a reasonable cost less dependable, while in many areas of the country, there is a shortage of available tradies, which needs to be factored in as a contingency to any proposed renovation budget,” he said. 

According to Mr Wargent, the prices of construction and materials tend to be sticky, warning renovators that the higher prices could persist for some time, even if global supply chain issues are resolved this year.  

“Geopolitical events are unpredictable, and supply chains may right themselves in time, but demand for materials and construction services remains relatively high for the time being,” he said. 

He noted that like the Western Plains, regional markets have taken less of a hit. 

“Renovators and flippers need to factor in the outlook for the local market they are operating in, to effectively manage project risks,” Mr Wargent said.