10 regional investment hotspots offering affordability and stability

For capital city residents, it’s easy to see the argument. According to economists at PRD, across 2023 the weighted average capital city Australian median house price grew by 5.3 per cent to $1,005,242, making the nation a “million-dollar country” when it comes to real estate.

But while fleeing city life for regional living may seem like the answer, not all country towns offer the right level of affordability or investment stability.

PRD recently analysed all of Australia’s non-metro areas to determine the 10 best towns for regional property investment in 2024, marking a follow-up to a similar list released in 2023.

Compiled by the brand’s research team led by chief economist Dr Diaswati Mardiasmo, the network looked into five key factors to pinpoint areas with not only a lower-than-average median home price, but those that offer the investment and livability factors that are important to Australian buyers.

The network gauged affordability by identifying local government areas (LGAs) where the median house price sits below the state average loan plus 20 per cent.

It ruled out any LGAs with fewer than 20 sales in the last 12 months, as well as those that did not achieve positive median house price growth within the time period.

To ensure that property investment is stable within the area, the brand targeted LGAs where the average rental yield is either on par or above its nearest capital city, with vacancy rates mirroring the major metropolitan centre as well.

In addition, the team narrowed the list to areas with unemployment rates that are either equal or lower than the national Australian average of 4.1 per cent to ensure local job growth. As an added bonus, they preferenced areas with a high concentration of commercial and infrastructure projects, indicating good economic prospects in the years ahead.

According to these factors, PRD identified these Australian regions as the most hospitable to property investment:

- Mackay Regional Council (Qld)

- Toowoomba Regional Council (Qld)

- Townsville City Council (Qld)

- Dubbo Regional Council (NSW)

- Tamworth City Council (NSW)

- Griffith City Council (NSW)

- City of Ballarat (Vic)

- City of Greater Shepparton (Vic)

- Wodonga City Council (Vic)

- Burnie City Council (Tas)

All chosen LGAs have a median house price of less than $600,000. And although that’s much lower than the median across the capitals, it’s still telling that the brand raised the threshold a full $100,000, from $500,000, between the 2023 and 2024 editions of the report.

According to PRD, that’s due to the dwindling affordability of Australian property.

As Mardiasmo noted, while the median family weekly income grew by 5.6 in 2023, roughly mirroring the median capital city dwelling growth, other figures show the reality of servicing a home loan in the current economic environment.

“The proportion of family income to meet home loan repayments rose from 44.3 per cent in the December quarter of 2022, to 47.7 per cent in the December quarter of 2023. Overall, this suggests that home ownership has become much harder,” Mardiasmo explained.

While the regions selected in this year’s report represent great affordability – with even the highest median price of $600,000 still 27.3 per cent lower than the median in Brisbane, 33.9 per cent lower than in Melbourne, 62.4 per cent lower than in Sydney and 18.9 per cent below Hobart – Mardiasmo stressed that time is of the essence.

“Now is the time to act before house prices travel further up,” she said.