Revealed: Cashed up home buyers spending millions on Orange properties

A little more than one in four homes (28.4 per cent) around the city were purchased mortgage-free in 2023, according to PEXA's 2023 Cash Purchases Report.

The average value of the 265 homes bought by a cash buyer in Orange was $688,000.

While the $182.3 million in total spend was second most across the Central West, Orange actually ranked dead last for percentage of homes bought with cash.

More than four in 10 homes in Forbes (42.5 per cent) and Cowra (40.8 per cent) were purchased without use of a mortgage, with at least a third of sales in Mudgee (38.9 per cent), Lithgow (36.7 per cent) and Parkes (33.3 per cent) done via a lump sum.

Bathurst (31.4 per cent) topped the total dollar amount category with $197.1 million worth of cash purchases, while Dubbo in the Orana region saw 25.2 per cent of sales made in cash to the tune of $136.6 million.

Overall across the Central West, $914.8 million worth of property was purchased with cash in 2023.

PEXA's report found the growing cash-buyer market was dominated by two groups; regional buyers - who contributed to the largest proportion of residential cash-buyers; and inner city-urban buyers - who made up the largest share of cash purchases by value and volume, due to greater transaction volumes and higher priced properties in inner city locations.

"Regional cash property purchases are likely being driven by retirees and downsizers looking for a 'tree change' or 'sea change' which has become a popular trend in recent years," PEXA's chief economist, Julie Toth said.

"In contrast, the inner-urban cash buyers are likely a combination of affluent owner-occupiers who are relocating, plus domestic and international investors buying rental properties. In Melbourne's postcode 3000 for example, over half of all purchases were paid in cash in 2023."

In NSW, postcode 2765 (Marsden Park) recorded the highest aggregate value of cash purchases in 2023, with $971.9M of properties purchased without a mortgage.

Postcode 2422 (Gloucester) recorded the highest percentage of residential properties purchased with cash (63.9 per cent).

NSW recorded an aggregate value of cash purchases of $54.9 billion, accounting for 27.7 per cent of total residential purchases