5 powerhouse regions boasting strong property markets

InvestorKit founder and head of research, Arjun Paliwal, described how “opportunities are beginning to present themselves for investors and owner-occupiers in dominant growth markets”.

While the conditions in each regional economy are unique to their areas, Paliwal said informed investors and buyers are well-positioned to seize a solid opportunity.

“The key will be following the numbers and letting the data guide purchasing decisions,” he advised.

The five economic powerhouse cities with strong property markets in Australia are:

1. Newcastle and Port Stephens
The economic growth of Newcastle and Port Stephens has continued its acceleration since 2020 bolstered by robust population growth, low unemployment rates, recent transport infrastructure improvement initiatives, and increasingly tech-oriented job creation.

InvestorKit said the region’s property market is experiencing relaxing pressure, particularly in Port Stephens, with sale days on market climbing, supply rising, and demand steadily declining.

With affordability a major issue for local income earners, for buyers hailing from the city the price point is more feasible, which has led to increased demand. Recovering confidence and stabilising interest rates were cited by InvestorKit as key influences in the region slowly regaining pressure over the coming year.

2. Toowoomba
After incurring a short decline, Toowoomba’s local economy has since returned to strong growth since 2020.

Toowomba’s property market has been slowly declining while supply is slightly higher, as flagged by the report. Despite a vacancy rate lower than 1 per cent in addition to a decade low supply of under two months’ worth of stock, the high but slightly dwindling market pressure indicates that Toowoomba will continue to grow at a more modest pace.

3. Tamworth
Tamworth’s economy has shown signs of recovery in recent years, driven by emerging opportunities in renewable energy, protein production and processing, education, and logistics.

Now, Tamworth’s property market is easing as a result of increasing days on market, rising inventory and vacancy rates.

InvestorKit expects slower growth in the coming year but believes gradual strengthening of the local economy in addition to increasing housing demand could see Tamworth regain its momentum in the near term.

4. Townsville
Economic growth has continued to accelerate within Townsville since 2020, with the property market benefitting from an active job market, affordability, and the tropical coastal lifestyle.

Even as demand drops, the impacts have been largely dampened as a result of extremely limited inventory comprising under two months’ worth of stock.

In the rental market, pressure is showing some signs of relief as supply increases despite the exceptionally low vacancy rate of just 1 per cent. This high market pressure, paired with high affordability, was cited by InvestorKit as likely leading to further healthy growth in Townsville’s housing market.

5. Dubbo
Dubbo’s economic growth has continued to accelerate over the past three years. The region’s local economy has thrived as a result of traditional industries like construction, manufacturing, mining, and agriculture, while emerging industries such as renewable energy, agricultural research, logistics, and tourism also see growth.

Having already passed its growth peak, Dubbo’s property market is not particularly high as a result of lifted (yet flattened) days on market, slowly declining demand, and rising supply.

Even so, the report cited the progressive strengthening of the local economy and rise in housing demand as reasons to expect momentum from Dubbo in the near future.