Rural and Regional Australian Property Market Shows Hope Amid Rising Exports and Investor Interest

The Australian property market presents an intriguing paradox in 2023, particularly in rural and regional areas. Even as parts of the market indicate a general softening and reduced buyer activity, rising exports and strong sales in some areas buoy the spirits of market analysts and investors alike [1]. Moreover, a new report suggests that regional Australia is set to become an attractive investment hub, with five areas standing out for their potential price growth, growing populations, and affordable prices [2].

According to a recent report by Lucas Meyer, areas in southern NSW are experiencing robust sales despite a reduction in buyer numbers [1]. “Southern NSW has seen a reduction in the number of buyers wanting to enter the area, nevertheless, the region is still experiencing relatively strong sales, particularly in the areas that are close to major centres” [1]. This sentiment was echoed by Elizabeth Tilley, who highlighted the increasing attractiveness of regional areas to investors in search of affordable property and potential growth [2].

The market situation in Australia is nuanced. In rural NSW, Craig Johnstone, Director at Herron Todd White (HTW), observes a slowdown in sales activity for the Central Tablelands and Central West NSW [1]. However, sales results remain robust in the south of the state. Johnstone cites the example of Karingal at Mangoplah, a 245-acre grazing holding with a five-bedroom house that sold for a whopping $2 million, $8,163 per acre [1].

On the other hand, John Gunthorpe, another Director at HTW, shares that dairy farmers are capitalizing on high milk prices, with several using the opportunity to exit the industry on the back of strong asset values [1]. As Gunthorpe put it, “The Gippsland region has delivered some uncanny results.”

Meanwhile, regional Australia is tipped to become a hotspot for investors. In a report by Terry Ryder, director of Hotspotting, five regional areas were identified as having affordable buy-in prices, solid rental returns, potential for price growth, and growing populations [2]. “They’re not that hard to find because regional Australia is full of locations with good growth prospects and solid properties in the $200,000, $300,000, and $400,000 price brackets,” says Mr. Ryder [2].

Ryder’s report includes Rockhampton in Central Qld, Tamworth in regional NSW, Mount Gambier in the Limestone Coast, SA, Lockyer Valley in regional Qld, and Geraldton in regional WA [2]. According to Dr. Laura Crommelin, Senior Lecturer in City Planning at the School of Built Environment at the UNSW, regions such as these have witnessed a significant influx of new residents recently, spurred by the allure of cheaper, more spacious housing [2].

As Lucas Meyer puts it, the months and years ahead are looking optimistic, with trade tensions broadly believed to have subsided and exports beginning to rise [1]. With these trends combined with the prospects identified by Elizabeth Tilley and Terry Ryder, it seems that rural and regional Australia’s property market could be ripe for growth and investment in the coming months.

References:

Meyer, Lucas. “Rural Australian property market hopeful as exports begin to rise”.  https://thepropertytribune.com.au/market-insights/property-market-rural-australia-showing-signs-of-property-sale-slowdowns/ 

Tilley, Elizabeth. “Regional Australia’s top 5 cheapest and best places to invest in property”. https://www.realestate.com.au/news/regional-australias-top-5-cheapest-and-best-places-to-invest-in-property/