Introducing the top five New South Wales regional housing markets, the affordable alternative to Sydney
- Property in these regional centers is a compelling alternative to expensive properties in Sydney.
- Several are well located between Sydney and Canberra, making them accessible to major cities.
- These regions also benefit from diverse local economies.
Post-pandemic, regional housing markets in Australia are thriving. Even though the manic growth levels and Covid-driven tree and sea change trends have subsided, regional housing markets still hold significant appeal for many Australians.
“The number of rising markets in regional NSW has increased recently, so 2024 has started with good momentum in many locations,” Graham said.
“NSW is a large state, and there are many different scenarios at play, including markets that are growing strongly, others that are growing moderately, and others that are still struggling.”
Hotspotting, Tim Graham
In late 2018, the PropTrack Home Price Index (HPI) showed that Australia’s combined regional prices reached a peak with annual growth of 2.06% and a median value of $618,000.
According to CoreLogic’s Regional Market Update earlier this year, Australia’s regional housing market growth surpassed that of the capitals, by 1.2% for the combined regions and 1% for the combined capitals.
Reports last year indicated that flight to regional Australia was not just about connecting with nature, but also about finding cheaper housing. There have been strong career prospects across regional centers, and remote working is also an option for those seeking to retain jobs in major cities.
It is estimated that capital-to-regional migration increased by almost eight percent during the period covered in the report, the third highest rise in people looking for a regional move in the past five years; indeed, Sydneysiders made up the majority of those looking for something outside of the big city.
City of Wollongong and neighbouring LGAs Shoalhaven and Shellharbour make up the largest market in Regional NSW, according to Ryder.
Those three municipalities form a growth cluster south of Sydney, with many individual suburbs and towns experiencing positive trends in sales and prices.”
Sydney is expensive, so this is a great alternative
Aside from some of Australia’s largest and most important regional cities, Regional NSW also has appealing sea change towns, attractive hill change enclaves, industrial centres, strong multi-purpose inland cities, lifestyle regions, and price ranges to suit all budgets,” Ryder said.
The region’s property markets are also supported by one of the nation’s strongest economies.”
Hotspotting by Terry Ryder
As part of that growth-state economy, there has been a large program of infrastructure development, such as the $31 billion Inland Rail Link, which has been energizing the market along its construction route.”
According to Hotspotting, there are five regional housing hotspots in New South Wales that should be targeted by homebuyers and investors. The analysis considers sales activity, buyer demand, and major infrastructure projects, as well as rental market metrics.
The five hottest property markets in regional NSW
- Wollongong
- Wagga Wagga
- Orange
- Tamworth
- Goulburn
Regional centres are often vibrant and diverse hubs of activity. These hubs typically had major tertiary education institutions, along with a diverse mix of industries from manufacturing to tourism, health to defence, and logistics.
Wollongong
Wollongong, which is two hours south of Sydney, is a thriving city with far more to offer than steel production.
A shift in tourism, commerce, health, and education, as well as the rise of shared services, has helped Wollongong diversify its economy.
According to Ryder, Wollongong is fourth in popularity among capital city residents, after the Gold Coast, the Sunshine Coast, and Greater Geelong.
In response to the growing demand, new apartments and land packages are being developed on the outskirts of the city.
According to Ryder of The Property Tribune, the regional New South Wales rental market is booming, with vacancy rates at record low levels, making it particularly attractive to investors.
“In fact, the city has maintained a vacancy rate of below 3% for 15 years and currently has a vacancy rate of less than 1% in most of its suburbs,” he said.
Wagga Wagga
Five hours southwest of Sydney or three hours west of Canberra, Wagga Wagga is gaining popularity due to its affordable lifestyle, access to employment opportunities in education, healthcare, and the defence force, as well as promising growth in the housing market, according to Hotspotting’s Tim Graham.
With a consistent 10% increase in median house prices, impressive yields, and low vacancy rates, the region has attracted not only those looking to escape city congestion and high costs, but also a growing population of construction workers and first-homebuyers,” Graham told The Property Tribune.
“This strategic inland city with a $4.8 billion gross regional product and a committed $93 million Capital Works Program is not reliant on mining and has multiple economic drivers for sustained growth.”
Tim Graham, Hotspotting
Graham said major developments, such as a new logistics hub and upgrades to military bases worth over $1 billion, are driving the positive momentum in the local economy, leading to a strong property market.
“With housing prices at less than half of those in Sydney, the popularity of Wagga Wagga as a desirable location is expected to continue, with its thriving wine industry, sporting culture, and vibrant festival scene adding to its appeal,” he said.
Orange
Three and a half hours west of Sydney, or a short hop from Bathurst, Ryder said Orange offers a tranquil countryside lifestyle with affordable housing and a diverse range of industries, making it a top investment location.
“This regional city has seen an influx of residents due to the Exodus to Affordable Lifestyle and COVID regional rush trends,” he said.
“As it evolves, Orange has emerged as a prominent hub in New South Wales.”
Terry Ryder, Hotspotting
“This charming city also boasts renowned wineries and a buzzing food scene, attracting visitors from Sydney for a weekend getaway.”
Orange is also home to a Charles Sturt University campus, a sprawling public hospital, and government offices.
“With a thriving agriculture and manufacturing industry, as well as a growing renewable energy zone, Orange provides ample employment opportunities,” said Ryder.
“The city’s housing market, with prices nearly half of Sydney’s, is further bolstered by its industry diversity.”
With its idyllic lifestyle and affordable market, Orange is a coveted destination for both investors and homebuyers looking to make a move to the regions, said Ryder.
Tamworth
Five hours north of Sydney, Tamworth is experiencing rapid growth with major infrastructure projects worth billions of dollars underway, according to Graham.
“The Tamworth Global Gateway Park, equipped with an intermodal freight hub, is expected to be a key contributor to the economy of New England,” he said.
“The city is also becoming a hub for renewable energy developments, with projects worth more than $10 billion in the works, including a Big Battery facility.
“With a diverse economy driven by industries like agriculture, mining, tourism, aviation, and healthcare, Tamworth is set for further growth with the planned opening of a University of New England campus in 2026.”
Graham said the city’s strong tourism and equine industries are also major economic drivers, boosted by renowned events like the Tamworth Country Music Festival.
“Its affordable cost of living, peaceful rural lifestyle, and well-established facilities make Tamworth an attractive destination for those looking to escape the hustle and bustle of major cities,” he said.
Graham said the city’s strong tourism and equine industries are also major economic drivers, boosted by renowned events like the Tamworth Country Music Festival.
“Its affordable cost of living, peaceful rural lifestyle, and well-established facilities make Tamworth an attractive destination for those looking to escape the hustle and bustle of major cities,” he said.
“With a resilient property market that showed consistent or increasing sales during and after the pandemic, Tamworth’s appeal as a lucrative investment opportunity is expected to continue into 2024.”
Goulburn
Ryder said Goulburn’s property market has shown steady growth since early 2020 and is expected to continue its solid performance this year and beyond.
“Although the sales activity has slowed in recent years, Goulburn remains an attractive and affordable lifestyle market, particularly appealing to first-home buyers,” said Ryder.
“The region has recorded a consistent annual capital growth rate of 8%, making it a favourable option for both houses and units.”
Ryder said its location between Sydney and Canberra ensures Goulburn also benefits from the influx of buyers who have been priced out of these major city markets.
“With affordable housing and ongoing developments to improve transport routes, the region has gained the attention of both owner-occupiers and investors,” he said.
“As a well-established regional centre, Goulburn has a strong and diverse local economy, driven by sectors such as healthcare, retail, construction, agriculture, and tourism.”
