Will Regionals Outperform?

Well if you buy now you could make some nice gains in next few years
assuming the whole country doesn't go down the gurgler that is

 

Do you think it will Strongy?

 

I doubt it......all trades charge far more than Syd......maybe the prior bums are being priced out of toght rental market and going bust

 

barring any nation wide economic disaster then I believe it will

Population 60,000+ and has been on the up for years.
Yet you can buy a house for 150k or even less if your prepared to do a bit of hard work

I don't like Gladstone that much but the housing crash there has gone way past the point of correction

What other towns with a population of over 10,000 have similar house prices in Australia?

Broken Hill
Morwell
Moe
Aararat
Innisfail
Dalby
Emerald
Warwick
Maryborough
Bundaberg
Rockhampton
Port Pirie
Port Augusta
Whyalla
Devonport
kalgoorlie
Geraldton

Out of all those towns only Rockhampton.is bigger
Gladstone has high median incomes and solid population growth

All that is suppressing prices is vacancy rates which was created by over building and investment
Now that building has stopped the ovsrsupply is getting soaked up and rents appear to be improving
Next step is price rises as yields I'm thinking yields will hit 9% soon

 

I think I misread your post!

Not sure if the country will go down the gurgler!
We don't make much anymore and a lot of jobs here are dependant on confidence in the property sector which has been booming for years. If it isn't Sydney then Melbourne would take up the slack and so forth
So if we see the confidence in property market disappear and migration is cut back then I think we might see some pretty big economic flow on effects in the labour market.
I think any downturn will seriously impair those secondary service jobs like cafes etc.
in the past whilst Aussies have been making squillions in capital gains on there homes they have been happy to blow there entire pay packet on services. No need to save for retirement as your house did all the savings for you!

on the other side of the coin -

Dollar is low at the moment which could be a bit of a saviour
increase in mining profitability, increase in tourism.
I'm thinking Sydney and Melbourne and associated markets will take a bit of a hit and Qld and WA will start to become popular investment spots over next few years after the dust from the current doom and gloom settles

so I'm sitting on the fence really, kind of sounds like a regular cycle...
mining bust might be over

 

The regions where dwelling values are still rising: Tim Lawless

"EXPERT OBSERVER

Almost half of Australia’s SA4 sub-regions have recorded a rise in dwelling values over the past twelve months.

With housing values falling across four of the eight capital cities over the past twelve months, it’s easy to forget there are some housing markets around the country that are actually seeing relatively healthy and sustainable growth conditions. An analysis of Australia’s 88 SA4 sub-regions shows almost half (42) of them have recorded some level of growth in housing values over the past twelve months.

Half of these regions have recorded a higher rate of annual capital gain relative to their five year average rate of growth, suggesting some acceleration in market conditions over the past twelve months. In fact, 31 (35%) of the SA4 sub-regions across Australia have recorded an improvement in their rate of capital gain over the past 12 months relative to their five year average rate of growth.

Regional areas of the country are much more likely to be showing positive growth conditions, with 57% of all regional areas recording a rise in dwelling values over the past twelve months, while only 39% of the capital city sub-regions recorded a rise in values.

THE ‘HEALTHIER’ CONDITIONS ACROSS THE REGIONAL MARKETS CAN PROBABLY BE ATTRIBUTED TO A RANGE OF FACTORS INCLUDING:

• More sustainable growth conditions during the growth phase – most regional areas of Australia have seen relatively sedate housing market conditions compared with the heroic gains across Sydney and Melbourne. The more sustainable history of price growth has kept a lid on housing affordability and made these markets attractive to migrants, particularly those areas where economic conditions are buoyant.
• A ripple of demand has been emanating from the largest capitals towards the satellite cities where housing is generally more affordable and lifestyle factors can be appealing.
• Many coastal and lifestyle markets have benefited from a rise in buyer demand, either from those looking for a new residence, second home or investment option.
• Many of the hard hit mining regions have now levelled out and are now showing some growth.

Some of the capital cities are also showing a broad base to rising values as well. In Brisbane, seven of the nine SA4 sub-regions have seen a rise in values over the past year and in Adelaide three of the four SA4 sub-regions have recorded an annual gain. The opposite is true in markets where growth conditions were previously much stronger; only one of Sydney’s 15 SA4 sub-regions (Central Coast) has recorded an annual rise in dwelling values while in Melbourne only four out of nine SA4 regions have recorded an annual rise.

The sub-region data highlights the diversity across Australia’s housing markets. While conditions are broadly slowing, especially around Sydney and Melbourne, many areas of the country are benefitting from a history of more sustainable growth rates, improving demand and reasonably strong economic conditions.

Tim Lawless heads up the CoreLogic RP Data research and analytics team"​

 

Victorian regions where property prices are growing strongly: Hotspotting's Terry Ryder

"But the really big growth is happening in the regional centres just outside Melbourne. Geelong has been attracting attention as a leader not just in Victoria but nationally. Domain says the median house price for the City of Greater Geelong has grown 12 percent in the past year - but individual suburbs, notably the cheaper ones, have recorded much stronger figures.

North Geelong and Herne Hill are both up 24 percent in annual terms, while Corio and Norlane (which both have median house prices in the mid-$300,000s) have grown 30 percent in 12 months.

Norlane, Corio and North Geelong have each grown at least 7 percent in the most recent quarter for which we have figures.

Geelong is not an isolated example. A little beyond the Melbourne metro area to the south-east, Officer, Pakenham and Warragul have recorded annual rises between 20 and 27 percent. Those three towns, plus nearby Drouin, rose a further 4 percent or so in the most recent quarter.

Other regional areas where prices have been outperforming Melbourne averages include the Surf Coast, Ballarat, Mildura and Warrnambool – and I suspect that most of these markets, as well as Bendigo and Shepparton, are very early in their growth cycles.

The latest Domain data indicates that there are eight regional areas of New South Wales which have recorded annual growth above 10 percent, but I’ll save that discussion until a future column.

Remember this data next time you read in mainstream media that property prices are falling everywhere."​

 

What's an SA4 region?

 

STATISTICAL AREA LEVEL 4 (SA4)

 

Australia's manufacturing sector is humming like a well-oiled machine

 

Thanks Radson, a genuine question here; what are the items Australia still manufactures locally? I know that automotive parts/repairs is still strong despite us not producing the actual new cars any more.

Outside of agriculture, energy, resources, what else do we manufacture?

All I can observe with the naked eye here in Sydney are the heathy products (what I call the 'chinese boxing shops' where Daigou bring their 3x tins of baby formula for boxing up and shipping to the mainland for the grey market). So, formula, manuka honey, vitamins etc. All of these items are manufactured locally. That said, share prices for Bellamys, Capilano etc. are mostly all down.

But what else is there? Medical components? Solar energy panels etc.?

I am not willing to put my $0.02 out there re: whether the AU economy will sink or swim, since I do not have all of the facts.

 

not sure ?
I am in food ingrediant manufacturing in a large
industrial suburb of Melbourne
The whole area is predominantly warehouses and a bit of metal work , trucking etc
Only other business in the suburb I can think of that makes something that goes overseas is a soap factory
So I wouldn't exactly say manufacturing in the traditional sense of the word is 'humming

If we include primary production activities then it makes it look a lot better

 

Colour City is 'Australia's most consistent property market' says analyst | Graphs

 

what else do we manufacture?

Ask these guys...and add another three zeros on to those numbers

Full list: Top 100 manufacturers 2017 - Manufacturers' Monthly

 

Rent affordability is the worst for six years hitting single people hardest

 

Progress Pics of a Dual Occ under construction at Miriam Drive, Orange - just a few hundred metres from Charles Sturt University

 

regionalpropertynsw.com

 

wouldn't anywhere in Orange be few hundred meters from CSU?