There are plenty of investment opportunities in the regional property market. Let’s take a look at some of the regional property trends that emerged in the past few months so that we can get an idea of how to invest going forward.
Understanding Regional Market Dynamics
The Australian housing market was quite resilient in 2024, with about 528 000 homes sold nationally during the year. This figure is 6% higher than the five-year average.
However, although it was a robust result, momentum started to wane towards the end of the year. This was due to softening demand and increased supply as new houses were built.
In New South Wales, steady growth was driven by demand from tree changers and hybrid workers who have contributed to the demand. Affordability pressures, however, led to slower growth in certain parts of the state.
That said, regions like Western Australia experienced significant increases in house values, indicating strong regional growth. In Queensland, units saw a 52.8% growth in value.
Conversely, Victoria’s housing prices declined by 2.8% last year, making it Australia’s worst-performing property market in 2024.
Identifying Growth Areas
There are several promising opportunities to be found in regional areas throughout the country.
Queensland demonstrated significant opportunity by securing six out of the top ten regional property hot spots in 2024. These include places like Ipswich, Logan, Logan-Beaudesert and Wide Bay. A large part of the reason for demand in these areas is their favourable weather, affordability and lifestyle appeal.
However, South Australia’s coastal markets, such as Somerton Park and O’Sullivan Beach, have also grown significantly. Seacliff and Port Vincent have enjoyed price increases of between 30% and 50%, driven by high demand and new development projects along the Fleurieu Peninsula.
New South Wales has also shown healthy growth for buyers seeking affordability compared to urban areas like Sydney. Inland areas such as Orange and Dubbo continue to grow thanks to agricultural investments, renewable energy projects and a strong local economy.
Capitalising on Market Trends
Investors who wish to leverage every benefit they can from the current market conditions would do well to focus on the most undersupplied markets.
Some regions have critically low housing inventory, particularly in Queensland, South Australia and Western Australia. These areas are primed to see the highest capital growth in 2025, so investments here could yield substantial returns over the next year or two, thanks to constrained supply.
It is also worthwhile keeping an eye on infrastructure developments. Major infrastructure projects can present potential growth opportunities.
Environmental risks are also an increasing consideration in property investments. Natural disasters, such as bushfires, can cause depressed property values. Therefore, it is crucial to consider factors like insurance costs and building standards when investing in disaster-prone areas.
If you’ve seen the property trends moving away from urban property and are keen on taking advantage of the investment opportunities of the regional property market, chat with us at WPG Advisory.