Regional NSW is the leading growth market right now

Posted on 3/04/2018  
Regional NSW is the leading growth market right now

Right now I think that the leading market jurisdiction in Australia is regional New South Wales.

So what do I mean by that?

If we divide Australia into jurisdictions where each capital city is a jurisdiction and each regional area of each state is also a jurisdiction we have 15 or 16 market jurisdictions, and I believe that right now the number one jurisdiction in Australia for growth property markets is regional New South Wales.

Partly this is because you have two bigger cities that have had recent property booms.

Sydney and Melbourne have passed their peaks and are winding down.

Investors across Australia are looking for new places to put their money.

Fortunately, some of the leading markets that provide opportunities right now are more affordable than those two bigger cities, have better rental yields, and also provide really good opportunities for price growth.

Right now, right across regional New South Wales there are regional cities with growth economies, growing populations, diversified economies, very strong local economies.

Remembering that when it comes to real estate markets what's important is what's happening in the local economy.

What's happening with population growth, what's happening with job creation, and what's happening with infrastructure and spending on new infrastructure.

Right across New South Wales we have strong regional cities with growth property markets.

A great example of them is the city of Newcastle. You could argue, and I would argue, that in the last 12 months, the strongest market for price growth in Australia has been in the city of Newcastle.

Pretty much all suburbs of Newcastle city in the last 12 months have had at least double digit growth in their median house prices.

Many of them had have had median price growth of above 20%, and there's a couple that are above 30%. It's been quite an extraordinary surge of growth in the Newcastle market.

That's happened because the city of Newcastle is a very strong city in its own right, a strong economy, a growth economy, diversified.

But also, it's got a ripple effect from Sydney which is just a couple of hours down the road in that it it compares favorably to Sydney in terms of relative affordability and better rental yields.

So Newcastle market has grown very strongly.

Newcastle isn't in this new edition of top five regional New South Wales hotspots because our goal at Hotspotting is always to identify future hotspots.

So in the past couple of years we have featured Newcastle quite strongly because we could see what was coming in that property market.

The growth that we predicted has occurred, there will probably be more growth, but we're now at the point where we take out a market like Newcastle.

It's no longer a future hotspot, it's very much currently a hotspot.

We include other locations that we think have more up-sight that haven't yet shown that level of growth but have the potential to show strong growth.

It's very fortunate for property investors that we don't have just one market in Australia. I know economists always talk about Australia as a single property market, and they talk about what's going to happen with Australian property prices, but really there is no Australian property market.

We have lots of different markets and they're not all doing the same thing, they're not all moving in the same direction, nor at the same speed at any one point in time.

So while the two biggest cities, the market's there, Sydney and Melbourne are past their peak, there are other places around Australia that are still going strongly or are just starting to rise and many of those locations are in regional New South Wales.

I urge you to read this report, it's worth getting it and studying it because you'll find that there are some great opportunities for investment in Australia right now.

Markets where real estate is affordable relative to the major cities, much better rental yields, and if you buy in the right regional cities in New South Wales, there's going to be good prospects for capital growth. 

The latest edition of Top 5 NSW Regional Hotspots 2018 is out now, which contains over 45 pages of information, analysis and commentary in this growing property market. Purchase Now

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