Victoria’s top picks are the Northern Grampians, Wodonga and Bendigo. In New South Wales, the Upper Hunter, Wagga Wagga and Griffith made the list.
In Queensland, the Whitsundays, Mackay and Toowoomba shone, while Tasmania’s Central Highlands also ranked in the Roaring Regions report, released on Thursday by PRD Real Estate.
Although the tree-change trend is slowing since extended lockdowns prompted the desire for more spacious accommodation for remote workers over the past two years, city dwellers are still looking for a regional move and a slower pace of life.
Cheaper housing and shorter commutes look even more attractive as the cost of living rises and petrol prices spike, PRD chief economist Diaswati Mardiasmo said.
“The cost of living there is definitely less,” Dr Mardiasmo said.
“You might not have to be doing one hour, two-hour commutes to get to your workplace, you are saving on fuel, you are saving time.”
Many appealing regional towns offer dining and entertainment options in a charming setting, she said, and offer an option for fully remote workers or those looking for local employment.
With a pipeline of development projects in the works, she sees a bright future for these areas and expects housing prices to keep rising.
The top picks were based on five criteria: affordability, where the median house price is below the state average loan size plus a 20 per cent deposit; property trends, or rising house prices over the past two years; investment, or a rental yield at least as high as its corresponding capital city; project development, with a high estimated value of commercial and infrastructure projects; and local job growth, with an unemployment rate at least as low as the state average.
In NSW, the Upper Hunter had a median house price of $373,000 last year, on PRD figures, with an average rental yield of 6.4 per cent, above Sydney’s 3.5 per cent.
The area’s unemployment rate is just 2.4 per cent and the report warned a lack of residential development could put upward pressure on property prices.
Further south, Wagga Wagga made the list with a median house price of $436,250, average rental returns of 4 per cent for houses and a jobless rate of 2.5 per cent.
Two hours west, Griffith in the Riverina region offers a median house price of $464,250, with a jobless rate of just 1.9 per cent and rental returns on houses of 3.9 per cent.
It may seem like an unexpected destination for Sydneysiders more used to considering a move to Wollongong or the Central Coast, but Griffith Real Estate director Brian Bertolin has seen a string of new arrivals from the capital over the past couple of years.
He said newcomers were pleasantly surprised to discover brilliant local food offerings, big-brand stores such as Bunnings and Kmart, pleasant weather and local sports for the family.
Real estate conditions have eased a little since last year but a lack of supply meant hot competition.
“Lately it has been OK, prior to that you would get a house on the market and there would be seven or eight people chasing it,” he said. “Some buyers would miss three or four properties in a row.”
For a three-bedroom brick veneer house, buyers would need a budget of about $400,000 or more, he said.
In Victoria, the report highlighted the northern Grampians, with a median house price of $287,500, low jobless rate of 2.9 per cent and rental yields of 4.2 per cent on average for houses, above Melbourne’s 2.6 per cent.
Monaghan’s Real Estate director Terry Monaghan said the area has plenty of jobs available, has had a limited supply of rental accommodation for years, and would benefit from more streamlined land development.
Drawcards include local wineries, lakes, mountains, tourist attractions, and a major project to build a dual highway from Stawell to Melbourne over the coming years.
House prices have gone up considerably, he said, as much as 30 per cent to 50 per cent for some pockets.
“There’s very few [properties] coming onto the market, so people are waiting and waiting,” he said.
The report also picked Wodonga, with a median house price of $450,000, a rental return of 4.7 per cent for houses and an unemployment rate of 2.3 per cent.
Bendigo rounded out the top picks in Victoria, at a median house price of $510,000, a jobless rate of 3.9 per cent and an average house rental yield of 3.9 per cent.
Further afield, affordable options are also on offer in Queensland’s Whitsundays (median house price $400,000), Toowoomba ($430,000) and Mackay ($412,000), as well as Tasmania’s Central Highlands ($250,000).
Source: Domain