Let’s face it, the city life has its perks, but it’s not for everyone. People are now eyeing up regional areas, seeking not just affordability but also a lifestyle change – and who can blame them?
Australians are increasingly recognising the untapped potential of regional areas, with 2023 REIQ statistics painting a positive picture of what regional growth can look like.
Reflecting on 2023: A Year of Impressive Growth in Regional QLD
The surge in property values in towns like Rockhampton, Bundaberg, and Toowoomba highlights the potential of regional markets:
- Rockhampton: Grew by an impressive 11.7%, reaching a median house price of $232,500.
- Bundaberg: Saw a significant growth of 10.7%, with a median house price of $435,000.
- Toowoomba: Marked a 10% growth, establishing a median house price of $550,000.
Regional markets have demonstrated economic resilience in the face of recent global and national economic challenges. This resilience is a crucial factor in PWF’s positive outlook on the potential for steady growth and stable investment returns in these areas.
- Affordability and lower entry costs
- Diverse economic sectors driving stability
- Strong local demand ensuring property value
- Availability of various property types catering to different needs
Selecting the Right Regional Town to Invest in
Choosing the right regional town for investment is more than just looking at surface-level traits. It involves a deep understanding of economic diversification and growth potential:
Economic Diversification
The most promising towns are those that have a minimum of 3 thriving industries. Towns transitioning from traditional industries to a more diverse economic base, including technology, renewable energy, defence technology, and tourism offer a buffer against market swings and sector-specific downturns.
Case Study of Mining Towns
Mining towns, for instance, may offer short-term profitability but carry the risk of industry reliance. In contrast, towns with a balanced mix of sectors, especially those in emerging fields, are likely to see sustained growth and a steady demand for quality housing.
Top Regional Industries that boost house prices
- Tourism: Regions with natural attractions, historical landmarks, or unique cultural offerings.
- Mining and Resources: Locations rich in minerals, renewable energy, or natural resources.
- Manufacturing and Trade: Areas with robust industrial zones or trade ports.
- Healthcare and Education: Regions with hospitals, universities, and research institutions.
- Defence Industry Expansion: Areas experiencing growth in defence-related job opportunities.
For first-time and young investors, the allure of regional markets lies in the blend of affordability, accessibility, and significant growth potential.
These regions present an ideal entry point into the property market, offering lower initial investments and the possibility of consistent long-term returns.
On top of that, the high rental yields and immediate cashflow makes them attractive for younger investors looking to start their property journey and add a 2nd source of income.
Variety in Property Types:
Traditional Homes: Classic single-family homes remain a staple in regional markets, appealing primarily to families seeking a balance between
Co-living Spaces: Emerging trends like co-living cater to a younger demographic, including students and young professionals, who value community living and affordability.
Dual-Occupancy Homes: These properties, which can be subdivided or have multiple living units on one title, offer flexibility for investors looking to maximise rental yields or for families needing in-law accommodations.
Explore Regional Investment with PWF
Whether you’re a seasoned investor or taking your first step into property investment, our team is ready to guide you through every aspect of this journey.
- Discover More: Learn about the diverse opportunities in regional markets and how they align with your investment goals.
- Personalised Consultation: Schedule a consultation with our experienced advisors to tailor a strategy that meets your unique needs.
- Expert Guidance: Leverage our insights and expertise in regional markets to make informed decisions.
Start your investment journey with PWF today and unlock the potential of regional property markets.