Investors flock to regional NSW as new hotspots emerge
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Photo by Belle Co
In a significant shift within the Australian real estate market, investors are increasingly turning their attention away from metropolitan suburbs, characterised by high price points and low rental yields, towards more promising opportunities in regional areas. This trend is highlighted in a recent report by Our Broker, the financial services arm of Raine & Horne, which reveals a notable surge in investor interest across regional New South Wales (NSW).
According to the report, investor inquiries in country towns have jumped by 20–30 per cent over the past year, with hotspots such as Bathurst, Young, Inverell, and Casino becoming focal points for potential buyers. Craig Betalli, a senior broker at Our Broker, attributes this shift to the current economic climate, which has prompted investors to reassess their investment strategies. “Lower borrowing costs have given investors more confidence, and many are asking how they can maximise the benefit of those cuts,” Betalli explained. “Regional markets offer a compelling answer, with investors able to get more bang for their buck while tapping into strong rental demand and higher yields.”
The appeal of regional markets is further underscored by data from PropTrack, which shows that Sydney’s median house price has soared to $1.5 million, with gross yields at a mere 2.77 per cent. In contrast, regional NSW offers a more affordable median house price of approximately $800,000 and average yields of 4.2 per cent, with some areas offering even higher returns where demand and affordability align.
In the Northern Rivers town of Casino, the real estate market is buzzing with investor demand, although a scarcity of available properties poses a challenge. Kate Morgan, principal of Raine & Horne Casino, noted the heightened interest from investors. “We’re fielding strong inquiries, but the challenge is a lack of homes coming to market,” she said. A typical three-bedroom home in Casino sells for around $500,000 and rents for $480–500 a week, delivering yields of approximately 5 per cent. Morgan emphasised the opportunity for property owners: “For owners considering selling, now is an ideal time to take advantage of high demand and limited supply.”
Meanwhile, further inland, the New England region is attracting attention from investors seeking substantial rental returns. Nellie Hayes, principal of Raine & Horne Armidale/Glen Innes, highlighted the lucrative opportunities in Inverell. “In places like Inverell, yields north of 7 per cent are still achievable,” she said. Hayes pointed to a recent $480,000 sale in Inverell renting for $700 a week, resulting in a 7.5 per cent return. In Glen Innes, where a $370,000 cottage was recently purchased, investors are enjoying weekly rents of about $400, equating to yields of 5.6 per cent. “The sweet spot is that $450,000 –$500,000 range,” Hayes added. “Open homes are packed with investors, and properties are being snapped up quickly.”
Bathurst, known for its iconic Mount Panorama race circuit, is also witnessing a resurgence in investor interest. Grant Maskill-Dowton, a director in Bathurst, noted the recent uptick in activity. “Over a six-month stretch, I could count investor sales on one hand,” he said. “But in the past two months, the tide has definitely turned.” With a near-zero vacancy rate of just 0.05 per cent, Bathurst offers strong confidence for yield-seekers, presenting a low risk of vacancy for investment properties. A $700,000 home can rent for around $600 a week, while two-bedroom units in the mid-$400,000s can deliver close to 5 per cent returns. Maskill-Dowton observed that open homes are attracting serious buyers, including Sydney-based investors. “They’re asking the right questions about rent returns, vacancy rates and cash flow,” he said. “It shows investors are back in the market and doing their homework.”
As the regional real estate market continues to gain momentum, it is clear that investors are increasingly recognising the potential for higher returns and lower entry costs outside of the major metropolitan areas. This shift not only reflects changing economic conditions but also underscores the growing appeal of regional NSW as a viable and lucrative investment destination.