With Sydney’s median house price hitting an eye-watering $1.59million there is no wonder that many buyers are seeking a better lifestyle along the regional coastal towns but they might not be able to escape the million-dollar club, with median house prices rising north of $1 million even though they are far away from the major cities.
In fact, some of the regional coastal towns have even over taken Sydney’s steep house prices with Byron Bay Shire (Northern NSW) topping the rich list with a median house price of $1.81million closely followed by the beautiful southern coastal town of Kiama with the median house price overtaking Sydney’s and sitting at $1.595 million.
In the post-pandemic era, with families focusing on lifestyle over convenience, families are now willing to sacrifice travel time and the conveniences of living close to work, in order to live the lifestyle dream which is why the south Sydney region of Wollongong, with its bearable travel time to Sydney (fairly frequent access on trains to Sydney CBD taking around 90mins) has increased by 18.8 % and has inched above the $1million mark with the median now sitting at $1.01million.
And we are expecting the prices to be pushed further due to interest rates on the rise which will encourage some home owners to move away from the city and into regional area’s because these areas provide great lifestyle options. With this regional migration occurring, further interest rates may tip the scale for some Sydney siders and coerce them to move out of the City where they expect to find a more affordable mortgage, or rental property.
Another reason for homeowners to relocate is due to cost of living pressures. Everything is always more expensive in the city, so moving out of the big smoke should also save families on travel expenses, petrol costs, eating out, and entertainment.
This is an example of how, although the market in the city may be in decline, there are other markets that may be rising as an on-flow effect for investors. You can really look out for these regional areas that are on the rise and make some excellent capital growth - sometimes even in the short term if you pick the right area at the right time. Buyer’s Agents seek these areas for investment opportunities and target properties which we call "investment grade" properties.
So, what to look for in a regional town to make it an investment grade property?
Several growth drivers
Look for multiple industries operating in the area such as hospitality, retail, agriculture, business, tourism, etc.
Infrastructure upgrades
Look for new developments as well as new hospitals or hospital upgrades, new roads, new bridges, new transport options (such as a new rail network or bus route). New hotels, new shopping centres, day care centres, green spaces, and new parks or parklands.
Education
Investigate whether the area has multiple education options such as public and private schooling. Also whether there is TAFE and a University in the area.
Increase in migration/ population rates increase
Keep an eye on the population growth on the area. An increasing population will influence house prices as demand outweighs supply.
Tourism industry
Is there a tourism industry or unique features that make the area a good destination to live or to travel.
Close to entertainment facilities
Having entertainment facilities makes a place more desirable to live.
There is more information on what makes an investment grade property as well as how to grow your portfolio in my book ‘Positively geared’.
To get in touch with one of our team - contact us here.
If you are looking for a buyer’s agent to assist you with purchasing a home or investment property in the Sydney, Brisbane and Newcastle regions, as well as SA, TAS, ACT, VIC, NSW & QLD please get in touch with Lloyd Edge and his team at Aus Property Professionals here or give us a call on 1800 146 837!
