Hotspotting Podcast | Episode 69 - NSW Regions Are Rising

Posted on 14/11/2018  
Hotspotting Podcast | Episode 69 - NSW Regions Are Rising

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Regional NSW is now one of the most compelling growth markets in Australia. There are locations right across the state with growing sales activity and many places are delivering double-digit annual price growth.

Regional NSW continues to move in the opposite direction to Sydney. While there are now few rising markets in the state capital, there are growth locations spread across the regions of NSW: a record 39 local government areas have rising markets.

Queanbeyan on the ACT border is the leading precinct, as it continues to stand out as an affordable growth alternative to Canberra. The LGA of Queanbeyan-Palerang has seven Rising Steadily suburbs/towns. Many locations in this precinct have had double-digit annual price growth, headed by Crestwood (up 18%).

Newcastle and nearby LGAs also form a compelling growth precinct. Suburbs in the City of Newcastle have had very strong price growth (many have risen between 10% and 20% in the past 12 months).

Now the momentum has shifted to neighbouring Lake Macquarie (which has five suburbs with strongly rising demand) and locations in the nearby Hunter Region (including Maitland, Cessnock, Singleton and Muswellbrook) and neighbouring Port Stephens. Jointly the Newcastle/Hunter region has 19 suburbs with rising markets.

The Maitland LGA has five of them, including Rutherford and Aberglasslyn, where sales demand is rising steeply – and both locations have recorded 6% rises in their median prices, with further growth expected.

Muswellbrook and Singleton continue to improve after the previous downturn caused by over-development and a downturn in the coal industry. Muswellbrook’s quarterly sales have risen from 41 to 52 to 57 to 74 to 83– and its median price has risen 11% over 12 months to $305,000.

Many suburbs in the Lake Macquarie LGA have had strong annual price growth, including Belmont (up 13%), Edgeworth (up 12.5%), Warners Bay (12.5%) and Swansea (15.5%).

Port Stephens just outside Newcastle is also producing growth markets, with demand rising in Medowie, Corlette and Shoal Bay, and solid markets also in Nelson Bay, Salamander Bay and Raymond Terrace. Many of these locations have had double-digit annual price growth, including Nelson Bay (up 17%) and Medowie (up 12%).

Others to stand out as above-average markets in Regional NSW include Albury, Armidale, Bathurst, Dubbo, Gunnedah, Lismore, Orange, Tamworth and Wagga Wagga. Sales in Casino in the Richmond Valley area have been 62, 65, 63, 71, 74 and 91 in recent quarters, with the median price up 14% to $285,000.

A number of regional towns that would normally not attract much attention from investors are rising, including Broken Hill, Glen Innes, Gloucester, Inverell, Kempsey, Kyogle, Leeton, Malua Bay, Mudgee and Tumut.

Quarterly sales in Inverell have been 52, 56, 56, 69, 69, 60 and 81, with the median price rising 16% to $275,000 in the past 12 months.

The Central Coast LGA, which has been busy for 2-3 years, is still producing growth markets, although it has a greater number of plateau markets. Many Central Coast locations have recorded strong price growth in the past 12 months – including Point Frederick (up 15%), Kincumber (15%), Wamberal (17%) and Gwandalan (13%).

Other regions delivering big price movements include Ballina in the north-east of the state, where Ballina, East Ballina, Lennox Head and West Ballina (up 28%) have lifted significantly the past year.

Other north-eastern areas with rising prices include Kyogle (up 15%), Lismore (12%) and Casino (14%).

So, overall, it’s a very strong scenario for markets across Regional NSW.

Sydney might be falling, but the opposite is true for NSW locations outside the capital city.

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