For first home buyers, budget-conscious buyers, or investors seeking bang-for-buck, regional Australia may be increasingly tempting.
Property outside of the capital cities is typically more affordable than that inside the major metros – with the median house in an Aussie capital city now commanding a price tag above $1 million, according to PRD Real Estate.
“All types of buyers are moving towards regional property,” PRD chief economist Diaswati Mardiasmo told Savings.com.au .
Lower property prices, potentially allowing first home buyers easier access to grants, might be a driving factor in an ongoing exodus from major metros, Dr Mardiasmo notes.
Families may find regional areas offer local employment opportunities, great schools, and a more relaxed lifestyle.
Investors, on the other hand, might be attracted to lower entry points, high rental yields, and tight vacancy rates.
Dr Mardiasmo says regional property markets are generally cheaper than those in the capital cities due to three factors.
One is a lower level of demand, while another is a greater opportunity for supply, largely due to more land availability.
The final factor she notes is a “regional versus capital mindset” – that people simply expect higher prices in major cities due to the businesses, opportunities, and lifestyles that reside there.
However, the workforce is now far more flexible than it once was, with remote employment allowing many outside urban areas to pursue careers from a distance.
No wonder that Aussies are flocking to areas like Queensland’s Sunshine Coast and Gold Coast.
Those nearby Melbourne, Geelong and Moorabool for instance, are also seeing plenty of migration, according to the latest Regional Movers Index by CommBank and the Regional Australia Institute.
But these well-known regions often come with a heftier price tag, and there are plenty of more affordable options for city slickers searching for both greener and more spacious pastures.
PRD has delved into the metrics to find the ten most affordable regions in Australia’s eastern states, included in its recent Roaring Regions report.
In identifying the most affordable regions, PRD experts considered those with median house prices below a state’s typical home loan size, positive house price growth, strong rental yields, decent projected development, and an unemployment rate equal to or lower than the national average.
The following data is all courtesy of the property, research, and development house’s latest report.
But first: What to know before moving to regional Australia
If you’re considering moving to regional Australia, Dr Mardiasmo sends her congratulations and offers her advice.
“Do your research based on what is important to you,” she said.
She advises would-be regional buyers to consider what they value – whether that be rental returns or lifestyle improvements – and create a shortlist.
“If possible, travel to the regional area for a weekend to see and feel the vibes,” Dr Mardiasmo said.
“If that’s not possible, talk to people you know who currently live there.”
Her final piece of advice: “Don’t be afraid to take the plunge.”
“Regional areas have proven to be extremely resilient, with high capital growth in the past five to ten years,” she said.
“They were the more resilient portfolios during COVID-19 and cash rate hikes, when some capital cities saw a softening in price.
“And right now, many are undersupplied, with demand still going strong.
“So the outlook is that property prices will keep on growing in regional areas and you want to be there now.”
NSW’s 3 most affordable regional areas
Dubbo
One of the most affordable regions of NSW is located west of Newcastle: Dubbo.
Demand for standalone properties in Dubbo is said to outweigh supply, with PRD expecting dwelling prices to take off in the near future.
|
Metric |
Value |
|
House Median Price (2023) |
$530,000 |
|
Land Median Price (2023) |
$246,000 |
|
Unit Median Price (2023) |
$340,000 |
|
Vacancy Rate (as of December 2023) |
1.6% |
|
House Rental Yield (as of December 2023) |
5.8% |
|
Unit Rental Yield (as of December 2023) |
5.2% |
|
Estimated Value of Developments in 2024 |
$4.69 Billion |
Griffith
Grifith, located between Sydney and Canberra, is known for its agricultural produce and wine cultivation.
“As an alternative investment perspective Griffith LGA is an attractive market, due to more affordable pricing, higher rental returns, and quicker occupancy,” PRD’s Roaring Regions report reads.
|
Metric |
Value |
|
House Median Price (2023) |
$531,000 |
|
Land Median Price (2023) |
$248,000 |
|
Unit Median Price (2023) |
$372,500 |
|
Vacancy Rate (as of December 2023) |
0.6% |
|
House Rental Yield (as of December 2023) |
5.0% |
|
Unit Rental Yield (as of December 2023) |
4.7% |
|
Estimated Value of Developments in 2024 |
$258.71 Million |
Tamworth
If you’re into country music, you’ll know exactly where Tamworth is. If not, you’ll find it in the northeast of NSW.
The city has experienced notable property price growth in recent years and is now at risk of becoming unaffordable, according to PRD.
|
Metric |
Value |
|
House Median Price (2023) |
$490,000 |
|
Land Median Price (2023) |
$210,000 |
|
Unit Median Price (2023) |
$331,500 |
|
Vacancy Rate (as of December 2023) |
1.8% |
|
House Rental Yield (as of December 2023) |
4.7% |
|
Unit Rental Yield (as of December 2023) |
5.0% |
|
Estimated Value of Developments in 2024 |
$112.42 Million |
Victoria’s 3 most affordable regional areas
Ballarat
Within commuting distance of Melbourne (albeit a long commute), Ballarat is known for its gold mining heritage and Victorian architecture.
Ballarat is Victoria’s third most populous city and boasts continued demand for housing.
|
Metric |
Value |
|
House Median Price (2023) |
$570,000 |
|
Land Median Price (2023) |
$300,000 |
|
Unit Median Price (2023) |
$385,000 |
|
Vacancy Rate (as of December 2023) |
1.9% |
|
House Rental Yield (as of December 2023) |
3.7% |
|
Unit Rental Yield (as of December 2023) |
4.3% |
|
Estimated Value of Developments in 2024 |
$2.26 Billion |
Greater Shepparton
North of Melbourne, the 'food bowl' of Australia – Greater Shepparton – has seen steady population growth and falling unemployment rates.
The region currently offers higher rental yields and lower vacancy rates than the state’s capital city.
|
Metric |
Value |
|
House Median Price (2023) |
$475,000 |
|
Land Median Price (2023) |
$270,000 |
|
Unit Median Price (2023) |
$330,000 |
|
Vacancy Rate (as of December 2023) |
0.9% |
|
House Rental Yield (as of December 2023) |
4.7% |
|
Unit Rental Yield (as of December 2023) |
6.2% |
|
Estimated Value of Developments in 2024 |
$1.80 Billion |
Wodonga
Albury-Wodonga straddles the Murray River, with Wodonga falling on the Victorian side.
House prices in the region have more than doubled over the last ten years and rental yields remain strong.
“Now is an ideal time for investors to enter the market, before prices are pushed up even further,” PRD’s report reads.
|
Metric |
Value |
|
House Median Price (2023) |
$567,250 |
|
Land Median Price (2023) |
$235,000 |
|
Unit Median Price (2023) |
$358,000 |
|
Vacancy Rate (as of December 2023) |
0.2% |
|
House Rental Yield (as of December 2023) |
4.6% |
|
Unit Rental Yield (as of December 2023) |
4.8% |
|
Estimated Value of Developments in 2024 |
$388.17 Million |
Queensland’s 3 most affordable regional areas
Toowoomba
Located 125 kilometres from Brisbane, Toowoomba is known for its Victorian-era architecture, street art, and gardens.
The regional city has experienced population growth of nearly 16% over the past five years while its economy appears to have continued to create jobs – leading to strong demand for housing.
|
Metric |
Value |
|
Median House Price (2023) |
$560,000 |
|
Median Land Price (2023) |
$245,000 |
|
Median Unit Price (2023) |
$380,000 |
|
Vacancy Rate (December 2023) |
0.7% |
|
House Rental Yield (December 2023) |
5.0% |
|
Unit Rental Yield (December 2023) |
4.9% |
|
Estimated Value of Developments in 2024 |
$6.14 billion |
Mackay
Mackay, a tropical coastal area close to the Great Barrier Reef, has an unemployment rate below the national average.
It is also tipped to grow, with PRD noting multiple commercial and infrastructure projects set to take place amid high interstate migration.
Metric |
Value |
|
House Median Price (2023) |
$462,750 |
|
Land Median Price (2023) |
$229,000 |
|
Unit Median Price (2023) |
$300,000 |
|
Vacancy Rate (as of December 2023) |
0.3% |
|
House Rental Yield (as of December 2023) |
5.9% |
|
Unit Rental Yield (as of December 2023) |
5.3% |
|
Estimated Value of Developments in 2024 |
$1.69 billion |
Townsville
Townsville, a coastal city in Northeastern Queensland, is among the Sunshine State’s top three affordable regional areas, according to PRD’s analysis.
“Now is the time to enter, before prices become unaffordable,” the report reads.
|
Metric |
Value |
|
House Median Price (2023) |
$420,000 |
|
Land Median Price (2023) |
$210,000 |
|
Unit Median Price (2023) |
$280,000 |
|
Vacancy Rate (as of December 2023) |
1.3% |
|
House Rental Yield (as of December 2023) |
5.0% |
|
Unit Rental Yield (as of December 2023) |
6.9% |
|
Estimated Value of Developments in 2024 |
$3.18 billion |
Tasmania’s most affordable regional area
Burnie
As a bustling port city on Tasmania's northwest coast, Burnie overlooks stunning beaches and parklands.
The rental market in Burnie is notably tight right now, potentially making the region attractive for investors looking to buy on a budget.
|
Metric |
Value |
|
House Median Price (2023) |
$435,000 |
|
Land Median Price (2023) |
$175,000 |
|
Unit Median Price (2023) |
$355,000 |
|
Vacancy Rate (as of December 2023) |
0.5% |
|
House Rental Yield (as of December 2023) |
3.7% |
|
Unit Rental Yield (as of December 2023) |
6.1% |
|
Estimated Value of Developments in 2024 |
$1.55 Billion |
Image by Maya Roberts on Unsplash
In text image of Dubbo by Museums of History New South Wales on Unsplash
In text image of Ballarat by Matt Zhang on Unsplash
In text image of Toowoomba by Greg Spearritt on Unsplash
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