Sometimes you have to look beyond the bright city lights for opportunity, and this holds true for property investment. This is why savvy investors are looking to regional areas in Australia, where a few of the fastest growing areas for property investment are. CoreLogic’s Cameron Kusher observes that all their data points to growth for regional markets, especially those within striking distance of capital cities, with affordability the key driver.
That is certainly not to say regional markets are not without risk. You simply have to examine some of WA’s mining towns, in which the boom was relatively short lived, and also the crash has hurt many who bought when the market was booming.
So, where to invest in 2018? And where are the most useful places to shell out and top growth suburbs in regional Australia? Let’s have a look at some to watch in 2018 and beyond.
NSW fastest growing regional property – should you be looking to get the best regional investment areas and opportunities far from Sydney’s crazy market, there are plenty of regional centres which posted excellent increase in 2017. Corelogic reported the Illawarra region is Australia’s top regional performer for the September 2017 quarter, with houses and apartments up by 13 % and 17 per cent respectively.
According to growth of the median property price (year on year performance to September 2017), Wollongong experienced a stellar year posting 13.9 % growth, having a median house value of $740,000. The regional economy is self-sufficient, with education and tourism because the primary drivers, with 1,100 people getting into the region each week, the Gong is on the rise. And being just 90 km from Sydney, it really is commutable by car and train.
Other regional property hotspots just south of Wollongong – include Shoalhaven ( 19.5 % growth/median price: $545,000) and Shellharbour (16.7 percent growth/median price: $650,000). Elements of the South Coast have likewise performed strongly over 2016/2017, with Falls Creek, near Jervis Bay ( 55.4 %); and Denhams Beach ( 48.78 per cent) near Batemans Bay both standout performers.
Investors can also be looking north towards the once unfashionable Newcastle, that has been transformed into one of fastest growing regional towns in the state. BIS Shrapnel’s Australian Housing Outlook reports the 7 year price trend for houses here has been a solid 6.9 percent each year, while units have outperformed them posting annual returns of 7.7 %.
The most effective suburbs in Newcastle, and the ones prone to experience growth in the near future include Wickham, Lambton and Lake Macquarie, which is a short thirty minute drive through the CBD.
Investors want to once unfashionable Newcastle, which was turned into one of fastest growing regional towns in NSW
Victoria regional property hotspots – Melbourne is the undoubted centre of best capital growth suburbs to invest in property, and even though it is still more cost-effective than Sydney, investors are increasingly seeking to regional areas in Victoria for better value and a lot more attractive growth opportunities.
A lot of Victoria’s regional hubs and towns are more accessible to Melbourne, due to better transport links, plus they provide a more relaxed lifestyle. Here the very best investment suburbs for 2018 include Lorne, where median house price grew by 35.26 % over 2017, the more Geelong ( 13.1%) area – just 75 km from Melbourne and Wodonga ( 6.7%). Many of Victoria’s regional hubs and towns are more offered to Melbourne, thanks to better transport links and offer a much more relaxed lifestyle
Queensland regional property hotspots – Queensland’s regional markets took a serious battering once the mining boom came to an end, but there are signs of recovery. Employment is rising and vacancy rates are tightening in numerous, including in Townsville. The same applies to Cairns where a strengthening tourism sector is being supported by local migration. Other growth hotspots are Sunshine Coast suburbs, including Buddina (100 km from Brisbane), Forest Glen, and Noosa Heads – which all grew by 13 percent or maybe more during to October 2017.
South Australia regional property hotspots – The Domain House Price Report reveals that Adelaide’s current median house price is $519,517, which is affordable by capital standards. But if you are searching for some thing affordable, say with a median house price under $300k, then South Australia’s coastal towns are worth investigating. These include Tumby Bay ($227,500), 50 km from Port Lincoln, Stansbury ($243,000) and Kingston ($246,000).
Otherwise Mount Barker, 35 km east of Adelaide, currently offers great affordability and proximity for the city along with usage of a variety of outstanding local wineries. Blanchetown, 109 km from Adelaide, which CoreLogic reports grew 42.6 % over 2016/2017 is an additional regional spot to watch, growth that puts it within the top 10 fastest eawclq suburbs. Should you be looking for an affordable investment under $300k, then South Australia’s coastal towns are worth investigating
Western Australia regional property hotspots – Like Perth, regional Western Australia has seen hard times because the mining boom disappeared within the horizon, where dwelling values have fallen faster than the state capital. The flipside with this is the fact WA is currently one of the most affordable property markets in the country – which never lasts long. If you are looking for somewhere near to Perth then Scarborough – just 14 km through the CBD – offers beachside living minus the price of several other high profile suburbs. Property prices here grew 2.82 percent around to June 2017, where most city suburbs continue to be negative.
Further afield Fremantle (23 km from Perth) has experienced significant shelling out for its infrastructure, like the train station, Victoria Quay and waterfront. Other regional towns with recent upgrades to local infrastructure include Katanning (300 km from Perth), that is now attached to the NBN, with further funds earmarked for local hospitals and schools.