Meet the three regional hotspots property investors need to watch in 2022

Houses in regional Australia have experienced outstanding capital growth, and there’s no end yet in sight.

There’s also a well-documented shortage of property to lease in many of the areas, with rents on a similarly steep upward trajectory.

“But investors need to choose wisely,” advises national property analyst Terry Ryder, the founder of hotspotting.com.au.

“You need a number of factors, like affordability, a strong and diverse local economy, and a healthy infrastructure spend by governments.

“If you’re missing any one of those, like the diverse economy, then it’ll be an investment that’s much more vulnerable and high risk.”

After crunching all the numbers, lifestyle trends, and infrastructure projects both underway and proposed, Ryder has favourite spots for investment in each state and territory.

In NSW, for instance, he favours the old country music capital of Tamworth in the north-east.

Its median house price, according to Domain’s most recent House Price Report, sits at $410,000, rising 9.3 per cent over the past year.

Moreover, the city is undergoing a significant transformation into a transport hub and a centre for many renewable energy projects.

“We don’t rely solely on mining or any single industry but have a lot of different types of businesses and industries here,” says Justine Reilly of PRD Tamworth.

“For those wanting to live here, it is a great place, but there’s simply not enough rental property available.

“The vacancy rate is down to about 1.5 per cent, and there’s so much more demand than supply.”

In Victoria, Ryder sees the City of Brimbank in Melbourne’s western suburbs, between 10 and 20 kilometres from the CBD, as another hotspot for investors.

Again, its relatively low house price point of $500,000 and $600,000 – compared with other areas of the city – and its university campuses, spending on roads and rail links, and repurposing of former industrial areas for residential zones help increase the attraction.

It has an acute shortage of rental accommodation, too.

“Every time one comes up, it’s snapped up immediately,” says Cherie Fox, property manager at Fox Real Estate in the area.

“There’s a particular shortage of four-bedroom homes.

“We often achieve more than the rental asking price. One we were asking $500 a week, but someone offered us $600 because they were just so desperate to find something.”

In Queensland, Ipswich, 40 kilometres west of Brisbane, with a median house price of $430,000, wins Ryder’s vote.

“Brisbane has been arguably the hottest market in Australia, and Ipswich is the cheapest part of that market,” he says.

“It has a lot to offer, it’s seen a massive uplift in sales in the last 12-18 months, and we expect major price rises.”

Principal of Ipswich Real Estate Dylan Ansems agrees.

He says that vacancy rates are now less than one per cent, signalling a real dearth of rental properties.

“We’re getting 30 to 40 people coming to every house viewing and 50 applications for every property,” he says.

“Rents have gone up from $360 or $370 a week 12 months ago to $450 to $470 now. It’s a really hot market, for sure.”