Bunbury, in the southwest of Western Australia, has emerged as a top growth candidate, as the state’s population continues to grow at a rapid rate.
According to Suburbtrends, there are a number of regional locations across Western Australia and Queensland that are showing promise, despite demand for regional areas being down on the highs of recent years.
Suburbtrends, Chief Analyst, Kent Lardner, said Bunbury was a top investment location that met the criteria of having a median price under $750,000 and rental yields in excess of 4.5 per cent.
“Bunbury stood out in our analysis, not just for its gateway status to the South West region but for the balance it offers between liveability and investment appeal,” Mr Lardner said.
“Its unique characteristics align well with our criteria, making it a significant highlight in our shortlist.”
He said there were a number of areas within Bunbury that stood out including Binningup, College Grove and South Bunbury, where it is still possible to purchase a house for under $500,000.
According to Mr Lartner, the port city’s charm extends beyond its real estate market, as it’s nestled between the Indian Ocean, Leschenault Inlet, and scenic bushland.
“Its coastal location offers stunning beaches, while the nearby Ferguson Valley showcases lush wineries and gourmet food experiences,” he said.
“Traditionally a port city, Bunbury’s economy has diversified into sectors like tourism, retail, and health services.
“The economic growth has been mirrored in the property market, providing a stable environment for investment.”
Mr Lardner said other regional areas with the potential for good growth include Newcastle, Wollongong, Central Coast, Geelong, Ballarat, Bendigo, Gold Coast, Sunshine Coast and Mandurah.
On the Gold Coast, Mr Lardner said he liked units in Broadbeach Waters and Bundall and houses in Willow Vale.
Mandurah, also in Western Australia was another area that is seeing increased demand and he said suburbs like Halls Head and Meadow Springs are likely to see more growth.
While on the Sunshine Coast, units in Wurtulla Buderim and Minyama, all have upside potential in the short term.
Mr Lardner said one of the important factors to consider when looking at regional markets was rental affordability.
“Shortlisting suburbs based on rental affordability was a complex task,” he said.
“With household income allocating more than 30 per cent towards rent in most suburbs, this challenge extends beyond renters to investors looking for areas where the local economy can truly benefit from affordable rents and disposable income.”