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Top 5 areas in Australia for property investors

Australian property. Aerial view of houses. Australian money notes. Property investment concept.
These regional areas are prime real estate for property investors, according to one expert. (Source: Getty)

Home prices have been falling across the country, but there are still some bright spots for property investors.

Data-driven buyer’s agency InvestorKit has identified five regional areas that are offering growth opportunities for investors.

“The common thing with all these locations is an extremely strong rental market with vacancy rates below 1 per cent,” InvestorKit founder and head of research Arjun Paliwal said.

Bundaberg, Queensland

Bundaberg rents have skyrocketed 40 per cent over the past 10 years, Paliwal said, and are now averaging $400 per week.

House prices have also risen by almost 20 per cent in the past 12 months, with the median price now sitting at $395,000.

Investors could expect a rental yield of 5 per cent, Paliwal said, and the coastal city was expected to have continued rental demand due to infrastructure spending and a strong local job market.

Toowoomba, Queensland

Just 90 minutes west of Brisbane, Paliwal said Toowoomba had seen capital growth of around 0.5 to 1 per cent per month over the past seven months.

Vacancy rates hovered between 0.5 and 0.6 per cent and rents had also risen, while listings for sale were below pre-COVID averages.

“Toowoomba is a major regional city and a satellite city to Brisbane,” Paliwal said.

“Brisbane saw a big spike in listings in the recent few months, but that hasn’t occurred in Toowoomba.”

Rockhampton, Queensland

Rockhampton offered affordable property with a high rental yield and low vacancy rates, Paliwal said.

“It’s not uncommon to see properties priced between $375,000 to $500,000 in Rockhampton, renting for $450 to $550 per week,” he said.

Rockhampton was an undersupplied market, Paliwal said, due to a lack of growth over the past decade and a steep decline in construction and listings.

Albury-Wodonga, NSW and Victoria

Bordering New South Wales and Victoria, Albury-Wodonga has experienced years of strong growth already, and is expected to continue this momentum.

“Albury-Wodonga has had a lot of growth over the last 10 years but, even after such a high level of growth, prices can still be sought after between $450,000 to $650,000 for houses,” Paliwal said.

“When you combine the towns together, it’s just under 100,000 people.”

The NSW and Victorian governments also recently approved a $500 million hospital redevelopment.

“The combination of affordable prices, low vacancy, still remaining under supply and also its infrastructure pipeline, means Albury-Wodonga is still looking good,” Paliwal said.

Barossa Valley, South Australia

Known for its wineries, Paliwal said the Barossa Valley was an attractive location for those seeking an affordable lifestyle and more space. Vacancy rates are under 0.4 per cent and rents are expected to continue skyrocketing.

“When it comes to affordable lifestyle trends, the biggest peak may be behind us but it’s not likely to disappear anytime soon,” Paliwal said.

The affordable middle ring of Adelaide was also worth considering, Paliwal said, with median prices sitting at $450,000 to $750,000.

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