Lifestyle locations expected to remain popular

Queensland and Western Australia: The Big Winners as People Flee Big Cities for Affordable Lifestyle Locations

Hotspotting Director Terry Ryder said that with the end of Covid, many buyers from Sydney and Melbourne are targeting Queensland due to its relative affordability and great lifestyle.

Rise in Popularity of Regional Western Australia

Regional Western Australia has recently regained popularity among buyers as its local economy has recovered from its post-mining boom slump.

Population Shift from Big Cities to Smaller Cities and Regional Areas

Hotspotting General Manager Tim Graham mentioned that even before Covid, it was becoming evident that more and more people were leaving large cities and moving to smaller cities or regional areas.

Mr. Graham added, “While media outlets suggested that this was a product of the pandemic lockdowns, the reality is that this major population shift has been underway for more than a decade.”

He stated, “Statistics demonstrate that Sydney and Melbourne have been losing population to other parts of the country for 10 and five to six years respectively.”

Geraldton in Western Australia Attracts Buyers with Affordable Coastal Location

Geraldton in Western Australia has seen a significant increase in buyers looking for an affordably priced coastal location, according to Mr. Ryder. The city has experienced high sales activity due to its budget prices compared to Perth, where houses typically range in the $300,000s. Additionally, vacancy rates in the Greater Geraldton region have steadily dropped since 2016 and are now well below one percent.

Stand-Out Performer: Toowoomba in Regional Queensland

Mr. Graham highlighted that regional Queensland has been a stand-out performer in the Australian property market in recent years, with Toowoomba being one of its best achievers. Toowoomba, Australia’s second-largest inland city, is enhancing its presence on the national stage through a massive program of infrastructure development. The city’s economy is also the second largest in Queensland outside the metropolitan areas. Its affordability, low vacancies, and solid yields have attracted various property buyers, including first-home buyers, tree-changers, baby boomers, retirees, and investors.

Murray Bridge in South Australia: Low Median House Prices Attract Buyers

Mr. Ryder stated that Murray Bridge in South Australia has caught the attention of several property analysts due to its continued price growth and increasing volumes in building approvals resulting from the rising interest of first-home buyers. The city, located under an hour by car from central Adelaide, has seen population growth driven by its attractive seaside lifestyle, affordable vacant land, and access to major job nodes.

Gladstone in Queensland: A Stand-Out Growth Market

Mr. Graham noted that the important regional center of Gladstone in Queensland has continued its recovery from a patchy past. Falling vacancy rates, rising rents, and increasing sales activity, combined with growth in house prices, have contributed to Gladstone’s positive momentum in the property market. Despite declining markets in many parts of the nation in 2022, Gladstone is standing out as a growth market.

Mandurah in Western Australia: Attractive Seaside Lifestyle and Affordability

Mandurah in Western Australia has also attracted attention from property analysts due to its continued price growth and increasing volumes in building approvals driven by first-home buyers. Its population growth is fueled by the region’s attractive seaside lifestyle, affordable vacant land, and access to major job nodes.

Hunter Valley in New South Wales: Enviable Lifestyle and Strong Economic Prospects

Mr. Graham stated that the Hunter Valley region continues to offer an enviable lifestyle and strong economic prospects, positioning it for continued growth. The Hunter Valley attracts lifestyle buyers and is also influenced by its proximity to Newcastle and Sydney, particularly when considering the affordability comparison between these cities. Most Hunter Valley towns have median house prices below $750,000, with four towns below $600,000, in contrast to Sydney’s median house price of $1.2 million.

Mitchell Shire in Victoria: Affordable Lifestyle and Good Transport Links to Melbourne

Mr. Ryder mentioned that since 2016, the Mitchell Shire in Victoria has started to gain popularity. Towns like Beveridge, Broadford, Kilmore, Seymour, and Wallan continue to attract strong buyer interest due to their affordability, lifestyle, and good road and rail links to Melbourne. Although median house price growth has slightly eased in mid-2023, all towns are still recording higher house prices than pre-Covid times with positive growth in the past 12 months.

Mount Gambier in South Australia: Affordable Housing and Vibrant Regional Economy

Mr. Graham highlighted Mount Gambier in South Australia as a steady performer and an example of the ripple effect that can occur outside major cities. It offers affordable housing, lifestyle opportunities, and employment growth in a vibrant regional economy.

Cairns: Diverse Economy and Strong Property Market

Mr. Ryder emphasized that the Cairns property market showed significant improvement in 2021 and 2022, and although it has passed its peak in 2023, it is still not suffering. The Cairns property market has been characterized by its affordability and low vacancies for several years. As the city’s economy continues to gain strength, it is poised for further growth with a diverse range of sectors, including healthcare, agriculture, education, defense, construction, mining, and information technology.

Lockyer Valley in Queensland: Projected Population Growth and Rural Appeal

Mr. Graham forecasted continued growth for the Lockyer Valley in Queensland, with a projected population increase of 40 percent by 2041. The region’s rural appeal, affordable property, and large blocks contribute to its growth path.