Why it’s worth digging a little deeper for regional real estate gold
As prices falter in Australian capital cities, regional areas continue to offer good value, if you know where to look
2 min
It could be argued that the 2022 real estate rollercoaster of the Australian property market has not been felt harder than in regional areas, with CoreLogic’s Regional Market Update reporting several areas that experienced the strongest growth now seeing the fastest declines.
The update, which examined 25 of Australia’s largest non-capital city regions, showed that house values in six of the most popular lifestyle markets had fallen by -6 percent or more, with NSW regions such as the Southern Highlands and Shoalhaven recording some of the greatest losses.
However, founder and director of Aus Property Professionals, Lloyd Edge says canny investors can still make money in regional areas if they know where to look, citing Gunnedah in NSW, Highton in Geelong and Sebastapol near Ballarat as areas tipped for growth.
He shares his regional property insights here with Kanebridge News.
What should investors look for in an investment in a regional area, given the post pandemic price drops so many areas have experienced?
I would recommend looking for a 5%+ rental yield, as the extra cashflow will improve your serviceability with lenders. I would also look for a location with multiple growth drivers, as well as Government spending on infrastructure, close to schools, hospitals and so on. A history of growth pre-pandemic is also important, as pretty much all locations experienced growth during the pandemic, but to ensure you’re buying a good long-term investment you need to look for a long history of growth in the area.
It’s also important to ensure you’re buying a property below the median house price in that area, and that you understand the demographic you’re buying for. For example, many regional areas are popular with young families who want to live in a house, therefore buying an apartment might not be the best choice of investment.
Are rental yields performing better in regional markets than capital cities right now?
Yes, in general rental yields in regional markets are performing better than in capital cities right now, especially those regional areas where the median house price is below $500,000. Of course, there are still capital cities like Darwin that are doing very well in terms of rental yields.
What about rental yields versus capital growth?
After the pandemic property boom, growth in many places has slowed down considerably, and rental yields are performing well in areas where the median house price is still below $500,000. However, this doesn’t mean that you should buy only for rental yields right now. It’s important to always look for a balance between rental yields and capital growth. A high rental yield will improve your serviceability with lenders and help you to keep growing your portfolio, however without capital growth you won’t be able to leverage the equity down the track to keep growing your portfolio and reach your financial goals.
Why would investors be advised to look beyond the usual regional suspects?
Once a location becomes popular with investors everyone rushes to buy there, causing prices to rise and putting a downwards pressure on rental yields. It’s therefore important to look beyond the usual regional suspects when choosing a place to invest. I would advise staying up to date with the current supply and demand data, so instead of following the trend and buying where everyone else is you can be aware of the next location that is set to see some growth.
This stylish family home combines a classic palette and finishes with a flexible floorplan
Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.
His stallion once won the Melbourne Cup, now this late legendary horse owner’s thoroughbred harbourside home is on the market.
2 min
A perfectly-positioned harbourside residence, formerly the home of a late Melbourne Cup-winning horse owner, has come to market with $14 million price expectations for its February 22 auction.
Sitting in one of Sydney’s most coveted enclaves on Waiwera St in Lavender Bay, the duplex with never-to-be-built-out gunbarrell views of both the Sydney Harbour Bridge and Opera House was home to championship thoroughbred owner Michael Fergus Doyle. The Irish-born entrepreneur was part owner of Protectionist, the 2014 Melbourne Cup winner.
Bought by Doyle in April 2020, in an off-market deal totalling $11 million according to CoreLogic data, the two-storey Lavender Bay property is being sold by the racing legend’s family through Atlas Sydney & East Coast. Doyle, a prominent character in Sydney’s Irish community for more than 50 years after arriving down under in the 1960s with a 10 pound boat ticket, sadly passed away in November 2023 at the age of 77.
Doyle built his fortune by building a construction company from the ground up that eventually employed more than 300 people and had a contract with Sydney Water worth A$100 million a year. By 2009, Doyle sold the business to a company owned by the Singapore Government and breeding horses through Doyles Breeding & Racing became his next passion.
The contemporary four-bedroom three-bathroom property features 304sq m of internal living space with additional outdoor entertaining areas on both levels.
Beyond the impressive grand entrance foyer with a personalised floor medallion, the layout opens up to reveal a large everyday living level with a formal lounge room and casual sitting space featuring walls of windows to frame the Harbour City’s top icons. Thanks to a central skylight tower, this main living zone is also flooded with natural light.
A spacious chef-grade kitchen anchored by a long island bench is equipped with Gaggenau appliances, gas burners, dual ovens, and a grill plate. The adjoining dining area spills out onto a terrace with an integrated bar table plus a Luna Park and bridge backdrop. The entry level also houses a home office or guest bedroom with a Juliette balcony and integrated desks opposite a full bathroom.
In the main bedroom suite upstairs there is a deep full-width balcony with more landmark views, a vast walk-in wardrobe, plus a spa ensuite complete with twin vanities, heated floors and warming towel racks. Two more bedrooms on the upper level each have access via French doors to a shared street-facing terrace and built-ins with a common family-friendly bathroom.
Added extras include automatic awnings and privacy screens to the outdoor areas, marble floor tiles, and a double lock up garage with storage.
The designer duplex is located close to harbourside dining venues, foreshore parks such as Bob Gordon Reserve and Wendy Whiteley’s Secret Gardens, Kirribilli Markets and North Sydney’s bustling CBD.
Property 2 at 9-11 Waiwera St is on the market with Adrian Bridges and Daniel Chester of Atlas Sydney & East Coast with a price guide of $14 million. It is set to go under the hammer on February 22.
This stylish family home combines a classic palette and finishes with a flexible floorplan
Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.
