The regional areas providing positive ROI
Thinking about investing outside the capital cities? Here are the regional hubs savvy investors are taking advantage of.
New analysis by Propertyology head of research Simon Pressley has highlighted the areas yielding the best results for investors.
Taking vacancy rates into consideration, Mr Pressley shared that some regional Queensland markets are performing well and, as a result, seeing more property investor attention.
“Cairns, Mackay and Bundaberg are just examples of regional Queensland real estate markets with much lower vacancy rates than most capital cities, while rents in Moranbah are now skyrocketing,” Mr Pressley said.
“In New South Wales, Wollongong’s rental market, like Newcastle and Port Macquarie, is softening, while Dubbo and much of the Central West has been tight for quite some time.
“Rental pressure is likely to further intensify in Armidale, Wagga Wagga, Griffith and others.”
When it comes to Victorian property markets, Mr Pressley said that while Geelong and Ballarat have been strong for a few years, “recent relaxation within their rental markets is just one example that suggests that their respective growth cycles have peaked”.
“Launceston has been one of Australia’s strongest property market over the past 12 months. However, pressure is also tight in Burnie and Devonport from both a rental market and property price perspective,” Mr Pressley said.
“Tasmanian real estate generally still offers the biggest bang for any property investor’s buck in my opinion.”
Vacancy rates annual change
Cairns, Qld
July 2018: 1.2 per cent
July 2019: 1.3 per cent
Logan, Qld
July 2018: 3.3 per cent
July 2019: 3.0 per cent
Bundaberg, Qld
July 2018: 1.7 per cent
July 2019: 0.9 per cent
Wollongong, NSW
July 2018: 2.3 per cent
July 2019: 2.7 per cent
Armidale, NSW
July 2018: 1.8 per cent
July 2019: 1.9 per cent
Dubbo, NSW
July 2018: 1.6 per cent
July 2019: 1.3 per cent
Geelong, Vic
July 2018: 1.4 per cent
July 2019: 1.9 per cent
Ballarat, Vic
July 2018: 0.9 per cent
July 2019: 1.6 per cent
Melton, Vic
July 2018: 1.4 per cent
July 2019: 1.9 per cent
Geraldton, WA
July 2018: 3.8 per cent
July 2019: 3.2 per cent
South Perth, WA
July 2018: 5.9 per cent
July 2019: 5.0 per cent
Launceston, Tas
July 2018: 1.9 per cent
July 2019: 2.0 per cent
Port Lincoln, SA
July 2018: 2.9 per cent
July 2019: 1.8 per cent
Glenelg, SA
July 2018: 3.2 per cent
July 2019: 2.3 per cent
Source: Propertyology
Mr Pressley’s research also highlighted the capital city markets seeing rents go somewhere versus nowhere.
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