Regional property markets continue to offer investors more bang for their buck with new analysis revealing the top 10 regional investment markets. The analysis by Buyers Agent identifies regional locations with strong sales and inquiries, solid capital growth and rental yields in the past 12 months.
The list is dominated by locations in Western Australia and Queensland. The top pick is Mandurah in Western Australia which has had 26% capital growth in the past 12 months and 11% rental growth.
Townsville is the top regional pick in Queensland with 19% capital growth and 11% rental growth during the past year. Buyer’s agent Andrew Pizzino says regional property prices have surged to the point that many properties are now listed without a price, making it harder for buyers to know what to offer.
Regional Australia Institute chief executive Liz Ritchie says new housing projects are starting to emerge after a long period of undersupply as developers recognise the growing demand. She says many regional areas are experiencing strong population and economic growth but have a shortage of properties. “The evidence shows housing approvals and construction are well behind population growth in the regions,” she says.
“The problem was there before COVID, but it’s been supercharged by population movement and only further compounded by record low vacancy rates in regional Australia.” Ritchie says the regions added about 89,000 people on average to their populations between 2012 and 2022, and the number of homes approved for construction fell in four of those years.