A perfect storm of factors has kept some property markets surging forward. Lifestyle changes brought on by the pandemic continue to drive demand to regional areas, as the local economies go from strength to strength.
We’re told that when interest rates go up, property prices go down. This has certainly not been the case for high performing regional property markets.
While growth is easing from record high levels, there are many parts of regional Australia where prices continue to rise, strongly.
The Hunter region booms
The Hunter Valley is great example, as highlighted in the Financial Review. This region, excluding Newcastle, boasted the highest performing regional housing market in Australia, growing 34.3% YOY. Our investors there are thrilled.
Experts predict the Illawarra region will continue to boom by up to 20% in 2022.
New growth regions
While this is great for those in the market, where should prospective buyers look to invest now? Here are six suggestions, all represent good value, when compared to their city counterparts. These areas are also tipped to continue their strong growth trajectory for the remainder of the year:
- The Illawarra region, NSW
- The Hunter region, NSW
- The Macarthur region, NSW
- Ballarat, Victoria
- The Bundaberg region, Queensland
- Brisbane, Queensland
These growth regions share a few important characteristics.
Strategically located
These regional markets are all located a commutable distance (1-2 hour drive) to a major city.
Affordability relative to the city
It is key to identify spots with future growth potential that are still affordable today. These appeal to a range of demographics: retirees that want an alternative to an apartment or a retirement village, young families on a budget and city dwellers that draw the line at spending $750,000 on an apartment.
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Drivers of regional growth
Here at DPN, our sights are firmly set on regional areas we identify as growth hotspots remembering these key ingredients:
- Population growth - as more people move to regional areas, there is increased demand for housing.
- Economic growth - many regions are experiencing strong economic growth, which makes them more attractive places to live. This increased demand puts upward pressure on prices.
- Limited supply of housing also contributes to price growth.
- International migration – with high international migration forecast, demand will stay high.
If we can help you explore opportunities in property investment in high growth regional areas, get in touch today.