With property prices in major cities such as Sydney pushing buyers out into commuter towns, NSW is now home to six of Australia’s top ten suburbs for regional growth. Let’s take a look at some of the fastest growing suburbs out there right now.
Just north of Wollongong, Stanwell Park has topped the list for regional growth suburbs. Prices here have grown by 59.9% in the 12 months until 31st January 2016, with the median price at around $1,575,000. This is much higher compared to the 12 month period up until 31st January 2017.
In NSW, the price of property in Falls Creek rose by 55.4%. This came in at number two on the list over the same period, with a median price of $777,000. Denhams Beach is the final piece in the top three, with a growth rate of 48.78% and a median selling price of $457,500.
CoreLogic figures provide an analysis of regional growth suburbs with at least 10 sales over the 12 months until 31st January 2016, compared to the 12 months until 31st January 2017.
Outside the top three suburbs, we have Bluff Point in Western Australia, Blanchetown in Southern Australia, Amamoor in Queensland and Richmond Hill in Queensland. These suburbs are all outside of that NSW group, but still made the top 10 on the list.
Suburbs on the NSW coast grew by over 40%, which shows that Sydney buyers are totally willing to move further away from the city.
Stanwell Park has done very well as there would be a considerable amount of Sydney-based people looking in that particular area.
These coastal areas actually offer something that you can’t necessarily find in Sydney. People seem prepared to make a change in their commuting habits, to get what they really want. In cities like Sydney, that is a big financial motivator, which tends to drive changes like this.
If you were living in Sydney but couldn’t afford to buy into the city, areas like Wollongong and Newcastle would be great candidates for your attention. They are areas which are seeing a lot of growth in population right now, which is a strong indicator of affordability. This is a nice hint that the area will grow in a positive way because of that factor.
Investing in a region
Big city dwellers might find the prospect of moving to a regional area, quite daunting. As long as the town has more than one source of industry, coastal and rural towns can offer fantastic returns on property investment.
Furthermore, regional areas offer a fantastic rate of price growth in property; not to mention some stellar yields as well. It is totally normal for regions like this to have both strong yields and strong price growth coinciding.
It is worth keeping in mind however, that you should study recent price slumps in detail before investing. This is especially important in mining towns, as they have recently left everyday investors out of pocket after the mining boom has ended.
You will typically find that regional areas susceptible to sustained growth, will have more than one source of employment. These regions will also be economically diverse and located within commuting distance of a major city.
Level of development is also a key factor to consider, as over-development can be a big issue in some areas around the country.