This article is from the Australian Property Journal archive
IN an uncertain market, buyers can find homes in regional areas with solid growth foundations at prices approximately 30% below Melbourne’s and half of Sydney’s median.
According to PRD Real Estate’s Top 10 Affordable Regional Areas 2023 report, all 10 Local Government Areas (LGAs) have a median house price of $600,000 and under, or around 30% lower than Melbourne’s and more than half of Sydney’s median house price as at December 2022.
Whitsunday LGA, QLD
Amongst Queensland’s affordable regional LGAs, The Whitsunday Region known for the Great Barrier Reef came in with a median house price of $460,000, land price of $190,000 and unit price of $320,000.
The LGA also has vacancy rate of 0.7%, house rental yield of 5.3% and unit rental yield of 7.4%, combined with a 2.8% unemployment rate, below the Queensland average of 3.7%, indicates a strong economy.
Over 2023 the Whitsunday LGA is estimated to see a total of $1,411,282,000 in development commencements, mainly in the commercial sector, further contributing to jobs and stimulating the economy.
Mackay LGA, QLD
The coastal Mackay LGA also made the list, with a median house price of, land price of $214,000 and unit price of $285,000.
Mackay LGA has vacancy rate of 1.1%, a house rental yield of 6.1% and unit rental yield of 6.5%, with a 2.7% unemployment rate, with a 4.8% boost to population in the five years to 2021.
The LGA is expected to see a total of $511,941,000 in development commencements over 2023, with 735 lots, 9 dwellings, 192 units, and 6 townhouses planned.
Charters Towers LGA, QLD
The third Queensland LGA is the rural town of Charters Towers, a key transport hub between Townsville and the outback.
With a median house price of just $260,000, land price of $85,000 and unit price of $215,000, Charters Towers has a vacancy rate of 0.2%, house rental yields of 5.6% and unit rental yields of 5.4%.
While the town’s population saw a 0.9% decrease in population over five years, the unemployment is below the average at 3.0% and $864,690,000 worth of development is set to commence in 2023.
The focus of the development will be on infrastructure projects, improving liveability and services, while a total of 116 lots and 20 units are planned.
Federation LGA, NSW
Looking to NSW, the Federation LGA on the border to Victoria in the Riverina region offers median house price of $405,000, land price of $182,000 and unit price of $372,000.
Federation LGA has vacancy rate of 0.4%, with house rental yield well above the Sydney Metro average of 2.2%, at 4.5% and unit rental yield of 5.4%.
Its unemployment rate is well below the 3.9% NSW average, at 2.7%, with a 2.5% boost to its population over five years.
While there is an estimated $1,021,650,000 in developments expected to commence over 2023, the majority are commercial projects, with no residential ready-to-sell stock planned, leaving undersupply to continue.
Dubbo LGA, NSW
West of Newcastle in the Orana Region of NSW, the Dubbo LGA has a median house price of $495,000, land price of $349,000 and unit price of $230,000.
With a vacancy rate of 1.2%, the LGA returns strong rental returns above the Sydney Metro average, with house rental yields of 4.7% and unit rental yields of 5.4%.
Dubbo LGA recorded an unemployment rate of 3.3%, below NSW’s average, with a significant 29.8% boost to its population over five years.
There is an estimated $887,723,000 in development commencements planned for 2023, with the majority in the commercial sector. While 517 lots, 7 units, and 34 dwellings are also planned.
Lithgow City LGA, NSW
Lithgow City LGA in the north-west of Sydney in the Central West region of NSW, has a median house price of $500,000, land price of $350,000 and unit price of $250,000.
With vacancies at 1.6%, Lithgow City saw average rental yields of 3.3% for houses, well above Sydney Metro, with units seeing an average rental yield of 3.3%, almost on par with Sydney Metro.
The unemployment rate was at 2.9%, well below the state average, while over the last five years the population has declined by 2.6%.
An estimated $824,650,000 in development commencements are scheduled for 2023, with infrastructure accounting for circa $409.0 million and commercial for circa $406.0 million, with 127 lots, 8 dwellings, and 4 townhouses planned for the area.
Greater Bendigo LGA, VIC
In Victoria, the regional inland region of Greater Bendigo LGA is the state’s third largest economy, with a median house price of $585,000, land price of $290,000 and unit price of $410,000.
Its employment rate is above the state average of 3.8%, at 4.2%, as more residents choose to live in the LGA, with 6.1% population growth over five years.
With a vacancy rate of 1.2%, Greater Bendigo LGA benefited from house average rental yields of 4.0%, well above Melbourne Metro’s 2.7%. Units recorded an average rental yield of 5.4%, again above Melbourne Metro’s 4.1%.
Greater Bendigo is expected to see $828,668,000 in developments commenced over 2023, with commercial accounting for $289.4 million and infrastructure for $496.7 million, while 132 lots, 12 dwellings, 27 units and 13 townhouses are planned.
Greater Shepparton LGA, VIC
The rural region of Greater Shepparton offers a median house price of $455,000, land price of $246,000 and unit price of $335,000.
Its employment rate is below the state average, at 3.3 %, with 3.9% population growth over five years.
Greater Shepparton LGA has a vacancy rate of just 0.7%, with average rental yields of 4.9% for houses and an average rental yield of 6.1% for units, both well above Melbourne Metro.
It is set to see a total of approximately $113,374,000 in development commencements throughout the year, with 21 lots, 42 dwellings, 3 units and 12 townhouses are planned.
Ballarat LGA, VIC
Sitting just 1.5 hours out of the Melbourne CBD, Ballarat LGA offers a median house price of $595,000, land price of $308,000 and unit price of $405,000.
With an unemployment rate on par with the state average of 3.8% and 1.4% drop in five-year population growth.
Investors in Ballarat LGA benefited from average rental yields of 3.4% for houses, well above Melbourne Metro, with units recording an average rental yield of 4.1%, on par with Melbourne Metro.
Ballarat LGA plans to see a total project pipeline of $488,057,000 across 2023, with infrastructure development a primary focus at circa $209.0 million and 6 lots, 11 dwellings, 86 units and 70 townhouses planned.
Central Coast LGA, TAS
Finally, in Tasmania the Central Coast LGA offers a median house price of $515,000, land price of $200,000 and unit price of $122,000.
In the 2021 census, Central Coast had an unemployment of 4.6%, sitting below TAS’s average of 5.9% for the same period and has seen a 5.5% boost to population over five years.
With a low vacancy rate of 0.4%, Central Coast LGA recorded an average house rental yield of 3.4%, which sits below Hobart Metro of 4.1% and an average unit yield of 4.6%, slightly above that of Hobart Metro’s average unit yield of 4.0%.
$27,130,000 in development commencements are planned for 2023, with the majority focused on residential projects and 48 dwellings and 19 units planned.
