Regional properties in New South Wales are starting to ‘box well above their weight class’ with values climbing and investor activity spiking, according to a major real estate group’s CEO.
Angus Raine, executive chairman and CEO of Raine & Horne, said more and more investors are being priced out of the Sydney market, so ‘smart’ investors were looking further afield.
“Sydney’s real estate prices are surging, so shrewd buyers and investors are casting the net wider to regional population centres such as Dubbo, Nowra and Young, where it’s possible to secure affordable investments for less than $350,000, and where yields of six per cent or more are achievable,” he said.
“We are blessed with major inland regional cities with significant populations of 40,000 to 60,000 and with all the talk about Sydney’s surging median prices, I’d urge investors to look inland.”
In Dubbo, the value of homes priced below $300,000 has jumped by more than 20 per cent in the past 12 to 18 months, according to Peter Allan, principal of Raine & Horne Dubbo.
“Dubbo is popular with investors as the residential property market is underpinned by a diverse economy dominated by agriculture, an emerging mining sector and robust support industries such as education, trades, housing, community and recreational services,” said Mr Allan.
“Dubbo also has a strong retail sector servicing western New South Wales, which equates to a shopping population of 130,000 people, including those living in the town.”