Save thousands on your home loan
Compare 25+ lenders and hundreds of loans in an instant
I want:
Westpac Macquarie citibank commonwealth bank anz bankwest
finni mortgages logo
google reviews
4.9
star star star star star
Rating based on 139 reviews

×

Regions getting the most investor attention revealed

Amid increased COVID-induced uncertainty, investors appear to be returning to the market in swarms, but most are now looking beyond city limits for new opportunities. 

Newcastle aerial CBD spi

Investors are returning to the market, based on recent data from the Australian Bureau of Statistics (ABS), but while most states and territories experienced a jump in investor lending, demand has been concentrated across regional cities, according to REA economist Paul Ryan.

“Affordability has been a big driver of demand in these regions, which tend to be favoured by people from capital cities looking for larger homes and more relaxed lifestyles,” Mr Ryan said.  

“But crucially, they are close enough to maintain semi-regular commutes to capital cities when the need arises.”

REA enumerated top regions per state based on the number of new investors in the period between October 2020 and March 2021:

State

Regions

New South Wales

Sydney Inner City, Gosford, Newcastle

Victoria

Geelong, Wyndham, Ballarat

Queensland

Toowoomba, Broadbeach - Burleigh, Caloundra

South Australia

Charles Sturt, Onkaparinga, Playford

Tasmania

Launceston, Hobart Inner, Hobart - North West

Western Australia

Stirling, Perth City, Cottesloe - Claremont


How to succeed

While the strong growth boost may have reached its limit, Mr Ryan said property investors will still be able to obtain capital growth in the future, but it will be important for them to do thorough research into where to invest. 

Looking ahead, adapting to post-COVID property trends will be key to the success of investment strategies, according to him.

Amid the new normal, the economist encouraged investors to look into some “new tick-box items”, including strong connections to industries with solid growth prospects and good access to services, amenities and transport links.

It’s also crucial to consider where buyers and tenants will want to live in the future in light of new work and lifestyle trends, he added.

“Increased remote working is likely to continue to benefit regional areas, although not all will benefit equally.”

“On the flip side, demand for inner-city areas is likely to return when borders open and immigration recommences, while the preference shift among buyers and renters towards larger dwellings, both within cities and away from them, is likely to continue,” Mr Ryan explained.

Ultimately, he opined, the COVID-induced shift in lifestyle and market movements will continue to lift the popularity of regional markets, and it’s up to the investors to tailor their own strategies to ensure maximum success. 

You need to be a member to post comments. Become a member for free today!

Comments powered by CComment

Related articles