Will Regionals Outperform?

Development happening everywhere lots of units but theres def no the jobs required.

 

"Continuing the recent trend, regional markets as a whole also bucked the downward trend."

Australian home prices fall for an eighth consecutive month

 

Regional... that is a whole lot of ground to cover and encompasses a whole lot of different markets! How vague.
There are small regionals, coastals, large regionals, growing regionals, regionals with a downward trend for population growth, regionals close to the city, regionals that are out hours away... regionals. Lump them all together or you could pluck your data from only a couple of regional centers to make the statistics play whatever game you like.

 

Regional Housing Market Value Growth Performance

 

'More buyers than properties': Towns where house prices are outstripping of those of cities

 

Market Update: Orange 2017/2018

 

Nocookies

 

Go Orange, go... More than half of Central West’s population growth in north Orange

 

Wasn't Orange NSW in the top ten locations for personal bankruptcies in 2018?

 

Doesn't seem to be having any impact whatsoever on rental yields or growth.

There is a generational migration underway.

Young families are relocating to large regionals due to affordability .
Retirees are sea changing or tree changing. They are cashing out of peak Sydney or Melbourne CGT free , paying cash for a tree change or sea change , with the option to park an extra 300K into super , and the rest ino other asset classes... and setting off to enjoy retirement.

Doesnt need to be tens of thousands of them. Regionals only need 1% population growth per annum and that's plenty to keep things ticking along nicely....

77 bankruptcies isnt news. 1% + population growth per annum ( and growing) is news. 10% growth is news. 8% rental growth is news. 1% vacancy rates is news...

This is just the beginning of this seachange/treechange trend.... its only going to gather momentum from here.

One only needs to look at the same things happening in Geelong, Bendigo, Ballarat, Port Macquarie, Bathurst, Orange, Goulburn... to see the trend. Large regionals are the new black

NSW towns the most popular regional areas in Australia for rural property investment

 

https://www.facebook.com/video.php?v=973151899557278

 

Our latest builds

https://www.realestate.com.au/property/17-buckland-dr-orange-nsw-2800

35a Turquoise Way, ORANGE, 2800, New South Wales

 

Orange economy thriving at every turn - Orange City Council

 

I'm on Euro73 side.

I have seen the NSW regional performed so well that I'm actually looking at it again for my next purchase.

Newcastle used to be considered regional, but a Terrace in the CBD there now going for $1m....

A lot of my customers are actually buying up Newcastle and the surroundings for retirement and downsize purposes.

 

https://www.facebook.com/video.php?v=1836020743133578

 

We've been in Orange for 2 years already, selling brand new Dual Occ's (4 bedroom homes + 1 bedroom granny flats) for 565-580K , which is @ the price of new 4 bedroom homes.

Killer deals. Killer rents ( now achieving $680 per week )

Prices in Orange are up over 10% year to date. Rents are up over 8% year to date.Just the beginning. So whats driving it? Its very simple.

Strong population growth is the first thing - which is being driven by the expansion of the public and private hospitals - Orange Medical Precinct is now the largest outside Westmead. That means lots of construction jobs and medical jobs, which means lots of well paid professionals moving to Orange now and for years to come as the hospital expansion continues
Expansion of Newcrest Mining's Gold Mine ( Cadia East ) and opening of Regis Resources new gold mine, McPhillamy's - this means lots of high paying mining and construction jobs moving to Orange now and for several years to come as the mines expand further
Department of Primary Industries HQ moving to Orange, - this means lots of Govt jobs moving to Orange in the coming years as the new office park is completed.
Tree changers and young families relocating for lifestyle and affordability .
New Medical School opening in 2021

So we are seeing all kinds of pull factors and population growth - and most of it is from highly paid workers. All of this is creating /has created an incredible shortage of available/registered land in the area, which is driving prices higher daily. Still plenty of legs in Orange @Anthony Brew

Next tranche of dual occ's coming very soon. Here's a reminder of the finished product...

17 Buckland Drive, ORANGE, 2800, New South Wales

35a Turquoise Way, ORANGE, 2800, New South Wales

13 Stevenson Way, ORANGE, 2800, New South Wales

 

It would appear there is money to be made in regional areas!

Well done, and thanks for the updates.

 

If only that applied to Gladstone, patiently waiting.. patiently waiting.. Impatiently waiting..

 

The popular sea change destinations attracting more young Australians

"Leaving behind the big smoke for a simpler way of life on the coast has long been a right of passage for older Australians.

But it’s not just retirees who are selling up and slowing down, with traditional tree-change and sea-change destinations becoming increasingly popular with younger generations.

“There’s been a complete shift, five years ago we never would have anticipated these changes,” said Felicity Picken, a lecturer in social sciences at Western Sydney University.

Dr Picken said housing affordability and cost of living pressures were pushing people away from the big cities, spurred on by slow wage growth and the casualisation of the workforce.

“With stagnating wages, we know people aren’t getting as ahead as they would like … if big cities stop becoming places where you can earn lots of money, if those opportunities are eroded … people are going to look elsewhere for other values.”

“If you’re precariously employed in the city and finding it hard to keep your head above water, why not be precariously employed somewhere else where you can have a better lifestyle.”"​

 

I have been observing this exact dynamic in the Shoalhaven for the last 3-4 yrs also. It will continue I believe given internet and transport improvements are ongoing and the global "digital nomad" trend is getting massive, this is just a local version of it. Lifestyle destinations within a few hrs of major nodes seems to be the trend.