Regional Australian
Star Property Performers
Think outside
the capitals
Instead of being transfixed on Australia’s two most expensive cities, for one third of the cost of a typical Sydney or Melbourne house, one could have purchased a property 3 years ago that achieved price growth which exceeded most capital cities and had a better cash flow.
Looking at the Evidence
To illustrate the many opportunities available through investing in parts of regional Australia, the table below contains a state-by-state summary of historical performance over the last three years.
The learnings from this historical evidence is not to jump in and buy in locations that performed strongly over the last 3 years but to appreciate the value in ignoring wives tales and removing the blinkers. Australia is littered with investment opportunities in affordable communities (big and small). The star performers in the next 3 years probably won’t to be the same stars of the last 3 years however, just like Guyra, Goondiwindi and Glenorchy, you’re unlikely to discover these gems through following the herd!
Return on Investment
[as at may 2017]
| City Council [C] = Capital City |
Median House Price | Acquisition Capital [20% deposit + costs] ** |
3-year Compound Price Growth | Median Rental Yield | Annual Holding Cost @80% LVR ^^ | Annual Holding Cost @106% LVR ^^ |
| Adelaide City [C] | $932,000 | $242,320 | 7.7% | 2.7% | ($16,020) | ($28,036) |
| Cleve | $236,000 | $61,360 | 34.9% | 3.7% | ($2,794) | ($5,862) |
| Gawler | $330,500 | $85,930 | 8.4% | 4.9% | + $134 | ($4,136) |
| Mount Gambier | $255,000 | $66,300 | 6.9% | 5.3% | + $758 | ($2,557) |
| Brisbane City [C] | $662,000 | $172,120 | 18.2% | 3.5% | ($6,418) | ($15,024) |
| Ipswich [C] | $339,000 | $88,140 | 8.7% | 8.7% | + $752 | ($3,655) |
| Logan [C] | $403,000 | $104,780 | 10.4% | 4.8% | + $109 | ($5,103) |
| Moreton Bay [C] | $445,000 | $115,700 | 9.9% | 4.5% | ($853) | ($6,638) |
| Redland [C] | $515,000 | $133,900 | 10.8% | 4.4% | ($1,017) | ($7,712) |
| Cairns | $409,750 | $106,535 | 9.3% | 5.1% | + $1,276 | ($4,051) |
| Gold Coast | $618,000 | $160,680 | 21.2% | 4.4% | ($3,554) | ($6,869) |
| Goondiwindi | $310,000 | $80,600 | 33.3% | 4.7% | ($484) | ($4,514) |
| Noosa | $630,000 | $163,800 | 19.4% | 4.3% | ($1,784) | ($9,974) |
| Scenic Rim | $440,000 | $114,400 | 10.3% | 4.1% | ($2,330) | ($8,050) |
| Sunshine Coast | $550,000 | $143,000 | 17.0% | 4.4% | ($980) | ($8,130) |
| Toowoomba | $370,000 | $96,200 | 7.2% | 4.5% | ($1,087) | ($5,897) |
| Hobart City [C] | $600,000 | $156,000 | 27.1% | 4.0% | ($3,459) | ($11,259) |
| Brighton [C] | $307,000 | $79,820 | 12.5% | 4.7% | ($603) | ($4,594) |
| Clarence [C] | $410,500 | $106,730 | 15.6% | 4.6% | ($671) | ($6,007) |
| Glenorchy [C] | $301,000 | $78,260 | 18.0% | 5.8% | + $2,512 | ($1,401) |
| Circular Head | $239,500 | $62,270 | 28.1% | 5.0% | ($60) | ($3,173) |
| Huon Valley | $330,000 | $85,800 | 17.9% | 4.4% | ($1,284) | ($5,574) |
| West Tamar | $315,000 | $81,900 | 10.5% | 5.1% | + $754 | ($3,341) |
| Melbourne City [C] | $1,165,000 | $302,900 | 53.3% | 2.5% | ($21,028) | ($36,173) |
| Boroondara [C] | $1,990,000 | $517,400 | 36.8% | 1.8% | ($48,518) | ($74,388) |
| Cardinia [C] | $430,000 | $111,800 | 22.9% | 4.2% | ($1,930) | ($7,520) |
| Monash [C] | $1,155,000 | $300,300 | 46.7% | 2.1% | ($25,659) | ($40,674) |
| Wyndham [C] | $465,500 | $121,030 | 25.8% | 4.0% | ($2,871) | ($8,922) |
| Alpine | $334,500 | $86,970 | 21.0% | 4.4% | ($1,464) | ($5,812) |
| Ballarat | $320,000 | $83,200 | 8.1% | 4.6% | ($644) | ($4,804) |
| Campaspe | $270,500 | $70,330 | 11.8% | 5.2% | + $617 | ($2,899) |
| Colac | $308,000 | $61,600 | 21.3% | 4.7% | ($404) | ($4,408) |
| Corangamite | $210,000 | $54,600 | 16.7% | 6.2% | + $2,079 | ($651) |
| Geelong | $440,000 | $114,400 | 14.6% | 4.0% | ($2,809) | ($8,529) |
| Shepparton | $261,250 | $67,925 | 6.6% | 5.7% | + $1,706 | ($1,690) |
| Mildura | $248,500 | $64,610 | 13.0% | 6.1% | + $2,455 | ($755) |
| Swan Hill | $226,850 | $58,981 | 13.4% | 6.1% | + $2,123 | ($826) |
| Wangaratta | $275,000 | $71,500 | 11.8% | 5.3% | + $916 | ($2,659) |
| Wodonga | $325,000 | $84,500 | 11.3% | 5.1% | + $833 | ($3,392) |
| Sydney City [C] | $1,620,000 | $421,200 | 54.3% | 2.6% | ($27,968) | ($49,028) |
| Auburn [C] | $972,500 | $252,850 | 35.8% | 2.8% | ($15,484) | ($21,127) |
| Camden [C] | $733,000 | $190,580 | 41.8% | 3.6% | ($6,383) | ($15,912) |
| Fairfield [C] | $780,000 | $202,800 | 41.4% | 3.1% | ($10,659) | ($20,799) |
| Hornsby [C] | $1,330,000 | $345,800 | 51.1% | 2.6% | ($22,597) | ($39,887) |
| Leichhardt [C] | $1,701,000 | $442,260 | 50.1% | 2.5% | ($29,771) | ($51,884) |
| Albury | $323,000 | $83,980 | 13.3% | 4.8% | ($46) | ($11,407) |
| Armidale | $360,000 | $93,600 | 10.8% | 5.1% | + $870 | ($3,810) |
| Bathurst | $410,000 | $106,600 | 15.7% | 4.3% | ($1,609) | ($6,939) |
| Bega Valley | $425,000 | $110,500 | 16.4% | 4.3% | ($1,730) | ($7,255) |
| Byron | $850,000 | $221,000 | 40.5% | 4.0% | ($3,876) | ($14,926) |
| Coffs Harbour | $479,000 | $124,540 | 20.1% | 4.5% | ($1,015) | ($7,242) |
| Coolamon | $213,500 | $55,510 | 25.6% | 6.6% | + $2,897 | + $122 |
| Dubbo | $357,000 | $92,820 | 19.0% | 4.8% | + $32 | ($4,609) |
| Forbes | $220,000 | $57,200 | 15.2% | 5.7% | + $1,200 | ($1,660) |
| Griffith | $300,000 | $78,000 | 13.2% | 5.7% | + $2,312 | ($1,588) |
| Guyra | $280,000 | $72,800 | 50.5% | 4.6% | ($721) | ($4,361) |
| Kempsey | $340,000 | $88,400 | 23.6% | 4.9% | + $233 | ($4,187) |
| Leeton | $234,000 | $60,840 | 17.0% | 5.6% | + $1,119 | ($1,923) |
| Liverpool Plains | $228,500 | $59,410 | 30.6% | 5.7% | + $1,339 | ($1,632) |
| Maitland | $430,000 | $111,800 | 13.8% | 4.5% | ($971) | ($6,561) |
| Narrabri | $310,000 | $80,600 | 13.6% | 5.9% | + $2,870 | ($1,160) |
| Narrandera | $172,500 | $44,850 | 13.5% | 7.5% | + $3,579 | + $1,336 |
| Newcastle | $560,000 | $145,600 | 25.8% | 3.9% | ($3,776) | ($11,056) |
| Orange | $355,000 | $92,300 | 2.9% | 4.8% | ($128) | ($4,743) |
| Port Macquarie | $520,000 | $135,200 | 25.3% | 4.3% | ($1,936) | ($8,696) |
| Tamworth | $330,000 | $85,800 | 14.0% | 5.1% | + $872 | ($3,418) |
| Wagga Wagga | $342,000 | $88,920 | 10.3% | 5.0% | + $632 | ($3,814) |
| Wollongong | $709,500 | $184,470 | 47.8% | 3.6% | ($6,402) | ($15,625) |
| Perth City [C] | $860,000 | $223,600 | 4.9% | 3.0% | ($11,943) | ($23,123) |
| Kalamunda [C] | $485,000 | $126,100 | -4.9% | 4.1% | ($2,692) | ($8,997) |
| Rockingham [C] | $395,000 | $102,700 | -6.0% | 4.5% | ($769) | ($5,904) |
| Wanneroo [C] | $437,000 | $113,620 | -8.0% | 4.3% | ($1,731) | ($7,412) |
| Augusta-Margaret River | $491,000 | $127,660 | 8.9% | 4.0% | ($2,932) | ($9,315) |
| Canberra [C] | $648,000 | $168,480 | 18.9% | 4.1% | ($2,983) | ($11,407) |
| Queanbeyan | $585,000 | $152,100 | 11.4% | 4.3% | ($1,661) | ($9,266) |
| Darwin City [C] | $565,000 | $146,900 | -9.6% | 5.1% | + $2,253 | ($5,092) |
Source: Propertyology, CoreLogic
** Assumes 20% deposit plus 6% allowance for acquisitions costs including stamp duty.
^^ Assumes rental income for 48/52 weeks, 5% loan interest, and provision for council rates, insurance, property management fees, and general property maintenance.