The Growth Potential of Regional Property Is Maturing

One of the biggest drivers of capital growth in property is population growth.  As more people choose to live in our cities, there’s more competition for housing and that forces prices up. 

At Pfeiffer Property we still like the growth prospects for quality new housing in greenfields estates in capital cities, as long as the necessary infrastructure, transport and employment opportunities are present, but there are now signs of property markets maturing in some regional centres too. 

The most obvious advantage of investing in regional centres is affordability. You can buy a property for considerably less than in metropolitan centres. A regional property investment can also be good for those looking to diversify their portfolios.  However, not every regional centre has the same potential for consistent capital growth so it’s important to choose wisely.

The regional centres we like have multiple major employers such as hospitals and universities, as well as industry, good lifestyle options, local attractions such as beaches, and proximity to capital cities, preferably through established public transport links.  

In NSW, we particularly like the Lake Macquarie/Newcastle area, which has prospered since Newcastle stopped being a one company town with the closure of the BHP steelworks in 1999.  The NSW government has also been spending some of the money it received from the sale of Port Newcastle on infrastructure and development. The Illawarra region is also worth investigating because of its natural beauty and proximity to Sydney.

There are also some excellent regional areas to investigate in Victoria, too. A promising area is Werribee, which is on the western fringes of Melbourne, but which has become much better connected since the new Regional Rail Link cut the travel time into Melbourne’s CBD to just over 30 minutes. Werribee has also been the beneficiary of considerable government investment to establish it as an urban centre, which bodes well for the future of any investment there. 

Geelong is now only an hour from Melbourne by train and on the same improved line as Werribee.  While it has suffered a downturn from the closure of large factories based there, such as Ford, it is close to Melbourne, set on Port Philip Bay and also has the Victorian government investing heavily in its future. Prices are already rising as people flee the property boom of Melbourne, it has its own city centre and there is strong potential for capital growth.

We also like Ballarat and Bendigo, inland Victorian cities that benefit from the density that comes from the state’s relatively small geographical footprint. These cities also have good rail and road proximity to Melbourne and enough varied employment sources and infrastructure to be able sustain their populations and provide investors with affordable entry points that offer good prospects for capital growth. 

For investors keen on Queensland, we recommend steering clear of the Gold Coast because although it is rapidly growing it is still dominated by a single industry, tourism.  One place we do like the look of, though, is Springfield in the Ipswich area. It is Australia’s largest master-planned city with newly built rail access to Brisbane. You can find out more about Springfield here: http://www.pfeifferproperty.com.au/index.cfm?module=NEWS&pagemode=indiv&page_id=597102

We spend time visiting these areas and doing the research to keep up to date on their potential as investments. We also have long-standing relationships with developers and builders who we can trust to provide quality investment properties. That can take a lot of the worry out of your investment. Why not take advantage of our knowledge to help get you an optimum investment result?