Regional areas in Australia are keeping pace or, in some cases, leading the metropolitan property markets and the overall outlook for real estate continues to improve.
Queensland’s Wide Bay region has proven to be the country’s top performer according to the latest Quarterly Regional Market Update from property data specialists CoreLogic. The region spanning around 50,000sq m along the coast includes Fraser Island, Hervey Bay and Bundaberg.
Scott Mackey, principal of RE/MAX Precision in Bundaberg, said the Bundaberg region property market was securely back in business with investors as the area firmed as a thriving regional hub with a diverse local economy and employment focus.
He cited four clear reasons why his region offered ‘bang for buck’ buying.
“The recent CoreLogic Top Rental Performers Report had four Bundaberg suburbs in its best performing suburbs in Australia, as ranked on gross rental yield (p.a). They were Kepnock and Thabeban each with 6.6% yield, Avenell Heights with 6.9% yield and Svensson Height with 7.2% yield.
“These suburbs are flood-free and include some of Bundaberg’s top locations,” Mr Mackey added.
“We have property listed right now that is offering investors yields of around 7.5%.
“Rents are still rising in our market, but vacancy rates are at record lows. Combine this with a slowdown of new stock construction and tough lending requirements for borrowers, we have strong demand for clean and maintained properties.
“With interest rates set to fall again and the buffer of loan rate to gross rental yield being 3% in many cases, there’s possibly never been a better time to invest in a rental”, he said.
In the Far North of Queensland, Tony Williamson says he can’t understand why every investor in Australia wasn’t looking seriously at his region’s real estate market.
The Cairns real estate identity, and owner of RE/MAX Real Estate Services, recently listed three homes in a row in one street, with a combined land package of 2022 square metres.
“We have three homes for the price of one average Sydney house. That’s great buying in my book.
“Property is selling at prices that were around before Facebook existed. With the interest rates so low, investors should be fighting to buy in my market”, Mr Williamson said.
He suggests that prices won’t remain this low for long, with the Cairns market sure to rise on the back of moving markets in the southern cities of Mackay and Townsville.
“Our market is affordable and profitable. “There’s a property wave coming in Cairns and now is the time to get on it. A matter of months on, it may be too late,” he said.
Lyn Cox, Public Relations – M. +61 418 793 096, E. email@example.com
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