When thinking of property hotspots, investors may not think immediately of Mudgee or Albury.
But according to hotspotting.com.au managing director Terry Ryder, that’s exactly where investors should be looking at investing after the pandemic passes.
NSW’s property market is well and truly open for business after the state government lifted restrictions that saw in-person inspections and auctions banned.
And once investors flock back to the property market, these hotspots, though they’re further out, will boom in demand.
Here’s where they are:
Typical house prices: $420,000
Typical unit prices: $260,000
This city in NSW’s central-west is propped up by a diverse economy, a good lifestyle and has been tipped to be one of the strongest performers in the Covid-19 recovery phase.
“Orange is a substantial regional centre with a strong and diverse economy, which continues to evolve as one of the most important regional centres in New South Wales,” Ryder stated in a recent report.
Orange’s property market is boosted by local education, agriculture, health and manufacturing.
“Not only does its food culture and wineries make Orange a popular weekend escape for people from Sydney, many people come to study at Charles Sturt University, or gain work experience at the Orange Hospital, or work in government departments - and decide to stay permanently.”
Typical house prices, North Albury: $240,000
Typical house prices, Wodonga: $330,000
This region, which straddles the border of NSW and Victoria, is particularly well-placed to withstand the impacts of the coronavirus – and thrive afterwards, said Ryder.
“The largest employment sectors in the city are hospitals & medical services, supermarkets & grocery stores, the defence force and aged care. In addition, residential vacancy rates are well below 1 per cent in most postcodes.”
Albury-Wodonga is also home to several national and international businesses, and is buffered by $1 billion spent in construction in Albury across the last five years as well as good transport links.
“Affordability, above-average rental returns and low vacancies are part of the appeal for investors,” said Ryder.
Typical house prices, Branxton: $595,000
Typical house prices, Muswellbrook: $300,000
The Hunter Valley is best known for its wineries, and is therefore a domestic tourism hotspot, but more people will be looking to settle in the area following the pandemic, according to the report.
“Towns in the Hunter Region have been at the forefront of the state’s regional growth markets for the past two years while the economy is becoming more diversified.”
Ryder added that the region’s economy’s strengths are in agriculture, viticulture and mining.
“These factors combined with other infrastructure projects, housing affordability, lifestyle factors and falling unemployment make the Hunter property market attractive to both owner occupiers and investors,” he said.
“People from Sydney are being lured to the Hunter Valley not only because of relative housing affordability, but also because of lifestyle, access to transport and employment opportunities which thanks to technology, means they can work from home and only travel into the city for 1–2 days a week.”
Typical house prices: $435,000
Typical unit prices: $305,000
Mugee’s local economy and its low unemployment rates have protected it from the brunt of the Covid-19 crisis. The affordable region, known for its food and wine, attracted 11,000 visitors last year.
“Following an upswing in the coal industry and other advances in the local economy in recent years, vacancies in Mudgee have fallen to below 2 per cent, supporting solid rental yields and placing upward pressure on prices,” said Ryder.
“The region is proving popular with tree-changers priced out of the Sydney market, lured to a regional area which offers properties on acreage at a much lower cost than a suburban house in Sydney.”
Typical house prices: $420,000
Typical unit prices: $340,000
Goulburn’s strongest sectors are in areas that are booming at the moment, such as health, supermarkets, retail and public service (including the police academy and prison).
“Goulburn benefits from its position in the growth corridor between Sydney and Canberra,” said Ryder.
“It has received a Ripple Effect from Sydney’s growth market, as well as the steadiness of the economy and property market in Canberra, and it lies in the path of the proposed Canberra–Sydney fast rail service.”
This property market has a proven track record of growth, with its long-term growth rate on houses at 6 per cent per year and 9 per cent for apartments.