Your Property Market Insights
City Dwellers Fleeing Metro Markets, Top Regional Investment Hotspots and More: A Weekly Look at The Hot Topics in Real Estate Across The Country…Dec 15 2024
Welcome to your weekly edition of Groundswell Property’s Market Insights, where we bring you the latest trends, research, and expert opinions shaping real estate across Australia.
In this issue, we’re tackling one of Australia's biggest challenges for property investors and homeowners: affordability.
With soaring prices in capital cities, many investors are finding it harder than ever to secure high-quality assets with strong growth potential. But here’s the good news: opportunity is alive and well—if you know where to look.
In this edition of YPMI, we’re shifting focus to regional markets, exploring why they’re not just an alternative to capital cities, but often a better choice for investors seeking strong fundamentals, affordability, and long-term growth.
We’ll cover:
Why demand for regional property is on the rise.
How to assess regional markets for growth potential.
The fundamentals you need to master—demand, supply, affordability, and desirability.
What separates thriving regional centres from risky, single-industry towns., there’s plenty to unpack.
As always, our goal is to provide evidence-based insights to help you make informed property decisions—whether you're buying, selling, or simply keeping a pulse on the market.
Unprecedented Demand for Regional Property
The idea of moving to regional Australia has gained serious momentum in recent years. The latest Regional Movers Index from the Regional Australia Institute reveals a telling trend:
Over 35% of movers in the September quarter left capital cities for regional areas.
This migration is 80% above pre-COVID-19 levels—a clear sign that people are drawn to regional living for more than just affordability.
Why is this happening?
Job opportunities: Regional centres now offer strong job markets, diverse industries, and often better work-life balance.
Affordability: With skyrocketing housing costs in cities like Sydney and Melbourne, regional towns provide a chance to own quality properties at far lower price points.
Desirability: Lifestyle factors—think proximity to beaches, a sense of community, and less congestion—are making regional areas more appealing than ever.
The most popular regional destinations include:
Sunshine Coast
Gold Coast
Greater Geelong
Moorabool
Lake Macquarie
But as RAI CEO Liz Ritchie points out, this growth requires support. Infrastructure, services, and local governance will be key to ensuring regional areas can keep up with this new wave of interest.
Investment Fundamentals For Success in Regional Markets
Now, let’s get to the heart of the matter. If you’re an investor considering regional markets, what should you look for? The answer lies in four key fundamentals:
1. Demand
Demand is the cornerstone of any strong property market. Look for locations where demand is likely to grow sustainably. This is often driven by:
Population growth: Are people moving to the area, and is that trend consistent?
Job creation: Diverse industries offering high-paying jobs are a strong indicator of long-term demand.
Avoid towns dependent on a single industry. These places are vulnerable to economic shocks—think mining towns that collapse when resource prices drop. Instead, target locations like Geelong or Newcastle, which have a mix of industries from education and health to manufacturing and tech.
2. Supply
Oversupply kills growth potential. Keep an eye on:
Vacancy rates: Low vacancy rates signal tight supply and strong rental demand.
Development pipelines: Too many new builds can flood the market, suppressing price and rental growth.
The Sunshine Coast, for instance, has consistently low vacancy rates, making it a prime spot for both capital growth and rental returns.
3. Affordability
Affordability isn’t just about cheap property; it’s about relative value. A market is affordable when:
Median prices are accessible to the majority of its residents.
Wages align with housing costs, ensuring locals can afford to buy or rent.
For example, areas like Ballarat and Bendigo have consistently attracted investors because they offer a balance of low entry prices and proximity to Melbourne’s job market.
4. Desirability
A property’s value is ultimately tied to how desirable it is to live in the area. Look for:
Lifestyle factors: Access to beaches, parks, and quality schools.
Infrastructure: Reliable transport links, medical facilities, and vibrant town centres.
Community appeal: A sense of belonging that attracts families and long-term residents.
Locations like Lake Macquarie, with its mix of waterfront living and proximity to Newcastle, tick all these boxes.
Why Some Regional Centres Outperform Others
Not all regional markets are created equal. Here’s the difference between consistent performers and high-risk locations:
Diverse job markets: Thriving centres like Toowoomba and Ballarat have broad employment bases spanning health, education, retail, and tourism.
Proximity to capitals: Markets like Wollongong and Geelong benefit from easy commutes to major cities.
Avoid single-industry towns: Think mining or agriculture-dependent locations that fluctuate wildly with global markets.
The key takeaway? The more resilient and diverse the local economy, the safer your investment.
The Investor’s Edge
So, how do you translate these fundamentals into action? Here’s a quick checklist:
Do your research: Use tools like CoreLogic or government reports to analyze demand, supply, and affordability metrics.
Visit the area: Nothing beats seeing the location for yourself. Walk the streets, talk to locals, and assess the vibe.
Think long-term: Invest in areas with stable, growing populations and robust economies.
Balance growth and cash flow: Focus on regions that offer a mix of rental yield and capital growth potential.
Key Takeaways
As capital city prices remain out of reach for many, regional markets offer a golden opportunity for savvy investors. By focusing on demand, supply, affordability, and desirability, you can uncover markets with exceptional long-term growth potential.
The key is to think strategically. Avoid the allure of quick wins and focus on regions with strong fundamentals. Real estate is a long game, and the best returns come to those who invest wisely.
That’s it for this week’s Your Property Market Insights. Whether you’re hunting for a suburb on the rise, or are keen to understand what’s playing out in different markets across the country, staying informed is key.
Keep an eye out next week for more expert insights and the latest updates on Australia’s ever-evolving property market, and reach out for further insights or guidance tailored to your property journey.
Enjoy the rest of your weekend - Tom
Tom Haigh
Director & Licensed Buyers Agent
Groundswell Property - Established 2015
tom@groundswellproperty.net0439754475