Right now there’s a lot of talk surrounding the growth of capital city property markets. The reality is that you don’t need to head into the capital to find markets experiencing exceptional growth.
Let’s take a look at the best regions for property growth in Australia. We’ll also consider where investors and homebuyers might be sinking their cash in order to make the most returns.
New South Wales (NSW)
Let’s start with the star of the show shall we? Illawarra is currently racking up an amazing 14.3% growth in residential property prices, and an 11.5% price for units.
Not too far behind this growth, were Newcastle, Lake Macquaries and Richmond-Tweed. Each of these areas saw a growth of 6%.
According to CoreLogic data, units in Wingecarribee are the hottest contenders. Units here have seen an increased median value of 18.2% over the course of the last 12 months.
In Victoria, Geelong saw some excellent growth at a 6.9% increase in the housing market, although units were not so hot – registering a 3.7% growth.
Rents went up overall, although this happened in line with property values. This means that rental yields have stayed quite flat at around 5% dependant on the area.
The five-year value change for houses is quite significant in this area however. A strong recorded value of 23.6% indicates that Geelong is still a solid area to invest in.
Perhaps it’s not much of a surprise, but the Gold Coast and Sunshine Coast are smashing the Queensland regional markets. In these areas, both house and unit prices have risen over the past year.
Sales volumes have dropped off over the past few months however, but are still well above the average for the five-year period. With the upcoming Commonwealth Games however, the Gold Coast will be a hot prospect in the 2017 property market.
Tasmania is one of the smallest regional markets in comparison to the larger states. The Real Estate Institute of Tasmania (REIT) reported less than 500 property sales for most quarters.
This has caused the market to display a weaker rate of capital growth. None of the regional areas hit double figure growth for the 12 months preceding September. West Tamar however, put in a good shift with median price value of 7.3%
Tasmania remains an area of supremely cheap real estate – with some property prices being as low as $54,000.
South Australia (SA)
South Australia is currently honoured as one of the only regions able to hit the 25% value growth mark. Barmera is where this was achieved. The rise has been strong for this Riverland town, yet it still remains affordable – the median price sitting at £205,000.
It would be hard to find other regional towns with such a strong growth, yet such a low price tag.
Western Australia (WA)
The Wongan-Ballidu housing market has soared recently, hitting 20.2% median value growth. CoreLogic data suggests that sales volumes remain relatively low in this area of Western Australia however, with around 14 houses sold in the year leading up to August 2016.
This may not be the ideal area for someone looking to make a quick buck, but for those who would like a strong and steady gain, this may be your region of choice.
Northern Territory (NT)
Last but not least, it’s the Northern Territory. Actually, perhaps it is the least. The Northern Territory has performed quite poorly. CoreLogic reported a value drop in every regional council area.
Whilst areas such as Katherine have performed ok, the overall performance has been poor. It is estimated that this will continue into the near future. The light at the end of the tunnel for investors, is that nearly all regions of the NT have rental yields of 6% or more. Property values may be crashing, but rents are still strong.