Revealed: The best tree-change or sea-change regional towns for first-home buyers

The top tree-change destinations for first-home buyers have been revealed, with the tiny town of Nairne in the Adelaide Hills topping the list.

Bungendore outside Canberra and Margaret River south of Perth took second and third spots in the ME Bank research, which shows the best regional towns for those looking to buy their first home.

They were followed by Mount Barker, also in the Adelaide Hills, Kiama on the NSW South Coast and Woodend in Victoria’s Macedon Ranges.

Towns were ranked by criteria such as housing affordability, healthcare and education facilities, employment rate, internet access, town character, the natural beauty of the area and population growth.

Only towns of 3000 to 20,000 people were included — those with enough critical mass for a town centre but not yet a regional city — and the list was kept mostly to towns within 200 kilometres of a capital city or 50 kilometres of a major regional city.

“Being in lockdown for a lot of the year, I think a lot of people are craving space, craving the outdoors,” ME consulting demographer Chris McNeill, director at Ethos Urban, said.

“For those of us who are in an office-based environment, it’s dawned upon us that we can quite effectively work outside a capital city, either on a full-time basis or a part-time basis.”

He noted some towns that ranked well appeared in clusters, such as in the Adelaide Hills (Nairne and Mount Barker), north of Melbourne (Woodend, Kilmore and Castlemaine), and in northern NSW (Byron Bay, Lennox Head and Mullumbimby).

First-home buyers in the Adelaide Hills could find ultra-affordable options within commuting distance of the city.

Nairne, the top-ranked town, had a median house price of just $400,000 over the year to September, on Domain data.

And buyers looking for an entry-level home could find listings in the low $300,000s, Harcourts Adelaide Hills Mount Barker’s Jo-Ann Heath said. Some small three-bedders are even offered below $300,000.

SOLD - $310,000

1/30 Princes Highway, Nairne SA 5252

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“We’ve got a lot of people who are coming from the city,” Ms Heath said. “We’re selling extremely quickly because people are looking for the space that’s offered in the Adelaide Hills.

“A lot more since COVID, since people have had time to be still and think about what they want in life.”

She describes Nairne as a well-kept secret as some city slickers only venture out on a 15 or 20-minute drive, as far as Hahndorf or Stirling, but making the slightly longer trip offers lower prices.

“Community spirit is big there [in Nairne],” she said. “It’s just a lovely town. It feels fresh and not too busy.”

Mount Barker, ranked fourth, had a median house price of $419,500 over the past year, on Domain data.

Bungendore NSW, outside Canberra on the way to Batemans Bay, had a median house price of $699,500 over the past year, on Domain figures, and ranked second on the list.

Entry-level homes are on offer from $550,000 to $650,000, or perhaps a little less for small cottages that need work, said Nicole Brady of Brady’s Countrywide.

She is fielding a jump in enquiry from Canberra and Sydney buyers looking for more space.

“Affordability’s a big thing. When you compare to what’s happening in Canberra there is the ability to buy a good house on a large block,” Ms Brady said.

“First-home buyers who might be looking to grow their family or start a family – for the same price you’re in a small townhouse complex in Canberra, compared to a large block out in Bungendore.”

Drawcards include antique shops, cafes and boutiques as well as local healthcare professionals and plans for a new high school, she said.

SOLD - $890,000

39 Molonglo Street, Bungendore NSW 2621

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Elsewhere, Victoria took out eight spots in the top 20, more than any other state.

Woodend, north of Melbourne, ranked sixth and had a median house price of $780,000 over the past year.

Nearby Castlemaine, further from the city, came in 20th and has a median price of $540,000, while Kilmore took 11th spot and has a $475,000 median.

RT Edgar Macedon Ranges’ Beverley Higgs said a first-home buyer might be able to get into Woodend for $650,000 “if you’re lucky”, but could also buy land and build with the help of government grants – a popular option during the pandemic.

“It’s a tight, engaging community, and that’s one of the big drivers – people want to feel engaged,” she said, adding that there were good schools and plenty of interesting towns nearby to visit.

SOLD - $820,000

5 Morris Road, Woodend VIC 3442

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But it was Tatura, outside Shepparton, that caught Mr McNeill’s eye as he conducted the research.

“It’s quite a vibrant little town centre for a place of its size, surrounded by dairy and orchard country,” he said.

“It generally wouldn’t feature in most lists of lifestyle destinations. It did really quite well because of its proximity to a much larger regional centre.”

Tatura has a median house price of just $315,000 on Domain figures.

Mr McNeill also acknowledged an outlier at the opposite end of the price spectrum.

Beachside hotspot Byron Bay ranked 12th on the list despite the town’s transformation from surfing village to celebrity hotspot, hosting mega-stars Chris Hemsworth and Zac Efron.

Byron Bay’s median house price was $1,442,500 over the past year – but its median unit price was a more agreeable $720,000.

“If you’re looking to buy a place in Main Beach, or even within walking distance of Main Beach, forget it,” Mr McNeill said.

But he said a first-home buyer looking to spend up to $750,000 on a two-bedroom apartment in Sydney or Melbourne could still purchase “well back from the beach” in Byron Bay.

“You’ll still buy a unit probably twice, perhaps even three times the size of the one you’ll buy in Melbourne or Sydney,” he said. “There are still options there for first-home buyers.”

First-home buyers Callie and JJ Shovlin have just finished building their first place in Lennox Head, which ranked 10th, and have one message for anyone thinking of making the move.

“Go for it,” Ms Shovlin said, praising her new subdivision’s shopping centre, childcare centre and open space, as well as the shops and dining options in the town.

Although the couple moved from Ballina to Lennox Head for the community feel and family-friendly location, she previously lived in Brisbane and prefers sea-change living.

“It’s such a nice change living in a small coastal village where there’s no traffic, and everybody knows everybody,” she said.

“It’s just such a refreshing change from city life.”