The Regional Property Market is Still Hot
This column is delivered in partnership with Moree Real Estate.
At a time when interest rates continue to rise and the increased cost of living is an ever present thought, it might seem a little counterintuitive to be considering new investment opportunities. But, as the regional property market continues to deliver some impressive returns, investing in the regional property market is maintaining its status as a quality investment option.
We saw unprecedented sales of residential properties in 2020 - 2022 across the regions, thanks to low interest rates, a strong flow of people leaving the city in search for a COVID-19 induced tree change and a much needed reprieve from a few dire agricultural seasons. And the market has remained strong across many of these areas such as Moree in NSW’s North West. As the lifestyle element of living regionally continues to be a major selling point, regional properties are proving to be an increasingly enticing investment option where good returns need not be sacrificed for lifestyle.
Affordability
With the average house price in Moree still as low as $260,000, the majority of residential properties in similar regional areas continue to be very affordable. Rising interest rates aside, buying in these regional centres with very tight rental markets is showing that often a mortgage is still cheaper than renting. Paired with overall cheaper cost of living and an array of top notch employment opportunities, the Australian dream of owning your own home is alive and well across regional Australia.
Strong Market Growth
In recent years, regional markets have outpaced their metropolitan counterparts, with the market in regional towns like Moree seeing an increase of 20 - 30 per cent. While capital city markets have been seeing some prices decline in recent months, many regional areas are holding steady and are likely to continue in that direction into the future. Rental returns are also sitting at 7 - 7.5 per cent compared to 3.8 per cent across Australian capital cities. So whether you’re looking to live in your property or are looking to invest in a rental, these strong market trends are hard to look past.
Economic Opportunity In The Regions
We’ve recently seen a huge influx of infrastructure projects come to life across the country, which not only helps make regional areas a more accessible and practical place to live in but also contributes to strong local economies and continued healthy property markets. With this influx of non-agricultural and often government backed projects taking place across regional Australia, such as Solar and Wind Projects and the upcoming Special Activation Precincts in Moree and Parkes, these regionals towns are seeing a strong boost to their local economies and a diversification from the traditional reliance on the peaks and troughs of the agricultural industry. With more infrastructure projects like these on the horizon such as hospital, road and rail upgrades, the potential for another huge growth period in these towns seems inevitable.
Looking to the future, it’s undeniable that the regional property market is still a major contender as an affordable and potentially high yielding investment opportunity.
Interested in understanding the investment opportunities that might suit you. Get in contact with the Moree Real Estate Team – www.moreerealestate.com.au