REGIONAL PROPERTY

Owning property in Australia’s major cities appeals to many of us.

But as property prices in these urban regions continue to remain high, it might be wise to look at the investment opportunities our regional areas have to o�er.

While you can’t expect the same level of demand-price growth as the major capitals, certain areas are heating up.

Data collected by realestate.com.au and CoreLogic highlights the top three regional property listing hotspots in each state.

Heddon Greta123%

$400,000

VICTORIA

SOUTH AUSTRALIA

WESTERN AUSTRALIA

NORTHERN TERRITORY

NEW SOUTH WALES

TASMANIA

QUEENSLAND

Cooma89%

$250,000

Chisholm78% $537,000

Barandunda

315%$329,000

Huntly138%

$359,000

$412,000

Strathfieldsaye58%

Elizabeth Town50%

Prospect Vale53%

$215,000

Forth40%

Whyalla Jenkins50%

$283,000

Whyalla Playford53%

$215,000

Baudin Beach40%

Region NameIncrease in Active Listings(%)

Median Sold Prices (All houses)

$404,000

Dundowran143%

$390,000

Jones Hill131%

$354,000

Ashfield104%

WHERE HAS THE GROWTH BEEN?

INCREASED INVESTMENT CAPITAL FLOWING INTO REGIONAL MARKETS

REGIONAL PROPERTY MARKETS ARE EXPANDING BECAUSE OF INFRASTRUCTURE PROJECTS AND THE CREATION OF NEW JOBS

WHAT HAVE BEEN THE KEY DRIVERS OF REGIONAL PROPERTY GROWTH?

REGIONAL PROPERTY PRICES VS. METRO PROPERTY PRICES

tomor rowfinance .com .au

http://www.businessinsider.com.au/most-expensive-suburbs-in-australia-january-2016-3http://www.businessinsider.com.au/these-are-the-cheapest-suburbs-to-buy-a-home-in-australia-2016-3http://www.domain.com.au/news/baby-boomers-heading-for-houses-in-40-regional-australian-cities-forecast-suggests-20160712-gq3plz/http://www.realestate.com.au/news/regional-growth-areas-to-watch/http://www.smartpropertyinvestment.com.au/markets-a-research/14870-investing-in-property-in-regional-areashttp://www.yourinvestmentpropertymag.com.au/strategy/get-rich-from-regional-australia-142069.aspx

Sources:

WHAT’S HAPPENING WITH HOUSE PRICES IN REGIONAL AUSTRALIA

A steady amount of commercial investment has been a huge influencer in raising the level of residential property growth in rural areas. According to Smart Property Investment, reduced capital values and the availability of quality property with the potential for strong yields has encouraged a variety of commercial activity.

Recent examples of positive investments in two regions – Bathurst and Orange – include:

Several regional towns are growing because of new infrastructure such as hospitals, schools, and shopping malls among others.

“The baby boomer generation [are] likely to create increased demand for housing throughout regional Australia.” Paul Flatau, Director of the Centre for Social Impact at the University of Western Australia

Some of the key reasons for this increase in demand include:

A recent example is the increase in property value around regional Victoria with the proposed development of the freight hub, Ballarat West Employment Zone (BWEZ). This development project announced at the end of last year is expected to contribute many new jobs and around $5 billion to the local economy

In Sydney’s west, the new Western Sydney Airport project is expected to add immense value to properties in neighbouring regional zones

Projects such as these require manpower during the construction phase, but also need people to

work the facilities once constructed.

Auction Sale6.7%5.5%

Auctions sales of Hungry Jack restaurant sites with yields around the 5.5% mark

The sale of a 7/11 at the end of 2015 for $4.5 million (6.7% yield)

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BABY BOOMERS ARE PUSHING THE DEMAND FOR PROPERTY IN REGIONAL AUSTRALIA

MANY PEOPLE ARE LOOKING TO “GREEN UP” THEIR LIFESTYLE

WHAT TO LOOK FOR WHEN CONSIDERING INVESTING IN REGIONAL AUSTRALIA

Low retirement savings requiring

property downsizing to free up cash

According to CoreLogic the creation of lifestyle markets occurred around coastal areas, with the largest proportion of these being young families rather than retirees.

The return to popularity of lifestyle regions to pre-GFC levels has occurred due to younger families looking for alternative

lifestyles and ways to overcome housing a�ordability issues in the capital cities.

Higher housing prices in the major

cities impacting housing

a�ordability

Desire for a change in lifestyle, those looking for a sea-change or a green-change for

example

It’s important to make sure you do your homework before thinking about investing in a regional property.

Regional property opportunities are there to be found and given the low interest rates currently in the market, it might be the right time to explore regional areas.

Information collated by CoreLogic highlights both the most a�ordable and most expensive Australian suburbs to purchase property.

Regional areas with rapidly increasing

populations

Healthy local economy aided by

new businesses and opportunity

Country towns or local councils with major

infrastructure projects in the pipeline

Here’s some things to look out for:

Any major construction project

that is about to occur in or nearby the town

With all the a�ordable areas being regional and almost all them well under $500,000, they o�er practical, a�ordable alternatives.

On the other end of the spectrum, the expensive suburbs are situated primarily in metro areas with prices starting just over

$500,000 to nearly $7 million.

The top 40 regional areas for Baby Boomers

Geelong

Shepparton

Bendigo

Ballarat

Mildura

Albany

Bunbury

Busselton

Geraldton

Devonport

Lauceston

Burnie

Alice Spings

Katherine

Port Lincoln

Mount Gambier

Wagga Wagga

Co�s harbour

Newcastle

Gosford

Wollongong

Bathurst

Orange

Dubbo

Tamworth

Armidale

Port Macquire

Maitland

Albury

Townsville

Mackay

Rockampton

Gladstone

Bundaberg

Hervey Bay

Sunshine Coast

Gold Coast

Toowoomba

Cairns

New South Wales Queensland Victoria Tasmania NT South Australia

NSWQLD VIC WA TAS NT

SA

Western Australia

Our experts at Tomorrow Finance will connect you with a great home loan deal to suit your property needs. We’ll be with you every step of the way

whether you’re just looking to enquire or keen to make that next step. Give us a call on 1300 754 562 or enquire online and we’ll call you back.

A REGIONAL PROPERTY MARKET THAT HAS DONE WELL: GREATER SYDNEY

NEW SOUTH WALES

In the Greater Sydney region, homes increased in value by 12.2% over 12 months to the end of the first quarter of 2016.

Property in the Blue Mountains achieved

growth of 17.8%

While the primary driver was a�ordability, other factors such as the creation of new jobs as a result of numerous construction projects helped influence this growth.

Additionally, those seeking a change in lifestyle also helped to increase demand for property in the Greater Sydney area.

The Central Coast and Wollongong witnessed 15% growth during this period

Blue Mountains

Central Coast

Sydney

Wollongong

+17.8% +15%

Spencer

San Remo

Mannering Park

NSW VIC QLD SA

WA TAS NT ACT

Melton

Melton South

Millgrove

$265,355

$280,966

$294,664

Russell Island

Dinmore

Leichhardt

Davoren Park

Elizabeth North

Smithfield Plains

$225,655

$227,512

$227,658

$179,954

$180,191

$192,237

Medina

Calista

Parmelia

$276,935

$308,061

$309,380

Herdsman Cove

Gagebrook

Clarendon Vale

$137,724

$140,650

$154,642

Moulden

Gray

Woodro�e

$465,257

$492,119

$511,911

Charnwood

Ngunnawal

Holt

$400,119

$435,859

$442,124

$342,372

$371,669

$390,821

Vaucluse

Centennial Park

Darling Point

Malvern

Deepdene

Toorak

$2,386,194

$3,116,040

$3,286,485

Ascot

New Farm

Teneri�e

Thorngate

Unley Park

College Park

$1362,546

$1,415,271

$1,679,321

$1,594,259

$1,658,356

$2,111,236

$4,4152,46

$6,358,359

$6,841,364

Cottesloe

Dalkeith

Peppermint Grove

Acton Park

Sandy Bay

Battery Point

$603,480

$672,007

$836,175

Bayview

Fannie Bay

Larrakeyah

Yarralumla

O Malley

Forrest

$1,045,277

$1,162,914

$1,234,044

$1,270,858

$1,737,150

$1,900,930

$1,718,989

$2,414,538

$3,333,093