‘Playing catch-up’: The NSW region near Canberra where house prices skyrocketed

House prices in the Snowy Monaro region – Canberra’s NSW neighbour to the south – has been on a high over the past year, and it’s not only because of its snow-dusted slopes.

According to the latest Domain House Price Report, the median house price in Snowy Monaro increased by a whopping 50.8 per cent in the 12 months to December to reach $585,000. Compared to five years ago, the house price median was up 118.7 per cent.

This is the strongest annual and five-year growth of all regional areas across the country.

For those in the region – which include the towns of Berridale, Bombala, Cooma, Jindabyne and Nimmitabel – this comes as no surprise.

“I think the whole region hasn’t had much focus up until the past few years … It’s a hidden gem for a lot of property buyers and investors, and there are a number of factors behind that growth,” said Shannon Fergusson of McGrath Cooma.

When it comes to the buyers moving to the region, agents indicate that they tend to be families and the most popular, investors.

For starters, there is the $4.6 billion extension of the Snowy Hydro 2.0 project, which aims to provide on-demand energy and large-scale storage to Australians by 2026.

“The project has been a major attraction for investors, and we’ve had an influx of them come in to purchase property with the intent that it’ll be leased out by contractors who are working for a project that is ongoing for a number of years,” Mr Fergusson said.

“There are a number of years to go on this, and then there are talks of extending it even further, so the return on investment is secure and high.”

And amid the height of the pandemic, many city dwellers swapped the hustle and bustle of city life for the peace and quiet offered by regional areas, and the Snowy Monaro region was no exception.

“With a median price of around $500,000, it’s a much more affordable price tag than the median of Sydney and even Canberra, so would you blame people for moving into this region?” said Craig Schofield of One Agency Schofield.

“It’s a favourable location. If you want to go to the mountains, it’s only a few minutes away. If you want to go to Sydney, it’s about two to three hours and only an hour to Canberra.”

While its affordable median house price and the project have been a drawcard for many buyers, agents say that Lake Jindabyne has also been a big attraction for buyers.

With the housing market reaping the rewards of a new project, locals are also waiting on a new master plan focused on promoting tourism in the area.

“This region used to be considered the winter region; a wonderland seen only in the colder months, but that’s shifted now,” Mr Schofield said.

“It’s just as popular in summer as it is in winter. Tourism is increasing by activities offered across the region for people who like to wakeboard, sail, hike, cycle and mountain bike. It’s a year-round region that offers a great lifestyle.

“House prices are just reflecting that now. We’re just playing catch-up.”