First home buyers and investors continue to show strong interest in regional properties. And this has combined with slowing or stagnating growth in most of Australia’s capital cities. There are many different reasons that can explain this trend. For example, low wage growth across Australia has pushed people out of the cities.
But there are other factors, too. Younger Australians continue to seek a more balanced life, and the spread out, small and open communities found in regional areas offer this at a far better value than what can be found in the capital cities. Furthermore, regional economies in many areas are on the rise, enhancing the interest in these otherwise forgotten areas of the country.
Naturally, this trend has been good for those looking to invest in property. Buying property now in a growing regional area can produce a solid return. And with rental growth occurring across the regions as well, now is a good time to get involved in regional properties.
Here’s a summary of the areas where some of the most attractive regional property investments can be found.
Geelong: Victoria’s second largest city has seen a 21.2 per cent increase in median sale prices over the last year, and a 47.6 per cent increase over three years.
Ballarat: Central Ballarat has seen a decrease in recent years, but Ballarat North and East have seen 6 per cent and 6.2 per cent price rises over the last year respectively.
Castlemaine: Although it’s population is below 9,000, steady growth in the area makes it an exciting investment opportunity. Median house prices rose 15.2 per cent last year, and they have risen a total of 23 per cent over the past three years.
Wodonga: Located right next to the Murray, both houses and units have been performing well, with a 14.7 per cent and 24.8 percent increase respectively.
New South Wales
Newcastle: The second largest city in NSW has seen a 32.9 per cent rise in median sale prices over the past three years, with Newcastle East driving the growth. This area alone experienced a 3.1. per cent increase over the past year, and prices have risen a whopping 78.8 per cent over three years.
Wollongong: As a coastal city near Sydney, it’s no surprise this is an area that’s growing quickly. Median house prices in 2017 were $885,000, which represents a 41.6 per cent increase from three years ago.
Boorooma: A decline in volume has been met with an increase in price, with the median sale price increasing $36, 500.
Toowoomba: In the heart of the Darling Downs region, East Toowoomba has seen steady growth. Over the past three years, the median price has increased 20.5 per cent.
Launceston: It shouldn’t come as a surprise that demand from Hobart has spread to nearby areas of Tasmania. Launceston saw a 16.9 per cent increase in median home prices just last year.
Mount Gambier: The second largest city in South Australia has seen modest gains as compared to other regions, but it’s 10.7 per cent increase in median prices over three years is certainly nothing to laugh about.
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