Regional NSW offers best capital growth prospects to property investors, report suggests

By on
Chinese Property Buyer
The Sydney Opera House and Harbour Bridge can be seen behind real estate agent LuLu Sun (R) as she escorts Bao Fang, a potential buyer from Shanghai, during an inspection of a property for sale in the Sydney suburb of Vaucluse, Australia, July 11, 2015. Reuters/David Gray

A recent study shows that regional NSW has become the best investment prospect in Australia. It suggests that NSW’s towns and cities outside of Sydney and Wollongong have driven growth in real estate transaction activity.

Hotspotting.com.au has released the Price Predictor Index, which shows that the Queanbeyan-Palerang region is also a solid growth market. The region is part of NSW bordering the ACT.

Transactions shot up over the past 18 months for some regional markets. These markets include the Hunter Valley, Wagga Wagga, Tamworth and Lake Macquarie. The report also states that regional NSW has a lot more to offer in terms of growth compared to Sydney.

Australia’s current standout area for potential growth is reportedly the Hunter Region, including the surrounding areas of Newcastle like Cessnock, Singleton, Muswellbrook, Lake Macquarie and Maitland. According to industry figures, over the past year, some Newcastle suburbs saw double-digit growth in median house prices, usually at over 20 percent.

“We expect this growth to ripple out to some of Newcastle’s near neighbours,” the report says.

Demand for buyers looking for a more reasonably priced alternative to Canberra can possibly lead to surging Queanbeyan prices. Prices in Sydney have fallen over the past year while growth has slowed in Melbourne.

Strong growth in home prices is expected in Wagga Wagga and Tamworth due to improving economies and improvements in infrastructure that pushes up housing demand. The Tweed region, Ballina, Coffs Harbour, Port Macquarie, Dubbo, Goulburn Port Macquarie, Bathurst, Orange and Albury are other markets with more than average prospects for price growth. In Wollongong, Port Macquarie, Coffs Harbour and the Southern Highlands, the demand is levelling out.

Meanwhile, a penthouse in Sydney looks set to become the country’s most expensive apartment after property developer John Boyd listed his home for $66 million. The Boyd Residence is situated on the top three floors of the ANZ Building and was completed in 2015. Its construction reportedly ran for four years.

"It's the only apartment that I know of that sits in a full commercial, high-profile building," LJ Hooker Double Bay’s Bill Malouf said, according to Mansion Global. He added that there are several Aussies who may be unaware that it even exists, and that there is nothing else in the country that compares with the penthouse. The 2400-square metre apartment offers a 360-degree view over the Sydney CBD.