Cheap regions where home prices will boom
The Hunter Region north of Newcastle and the Albury area offer NSW's best prospects of bagging a cheaper real estate investment that will quickly grow in value, new analysis shows.
The regions were flagged in a report by property group Hotspotting as having an unusual pairing of low house prices and thriving economies, which suggested fertile grounds for investing.
Local prices would also get a boost from an exodus of big city dwellers seeking a lifestyle change after shifting to a work from home schedule, according to the report.
Hotspotting director Terry Ryder revealed Albury and the Hunter - in addition to Toowoomba and Rockhampton in Queensland, and Victoria's Latrobe Valley - offered the chance to "get ahead of the boom".
Among the forces set to drive up Hunter Region house prices was the long pipeline of infrastructure projects, including the $700 million Singleton bypass.
The projects were creating new jobs and putting upward pressure on property prices.
The Hunter also has a diversified economy and offered appeal for Sydney-based workers.
"Towns in the Hunter Valley offer a rural lifestyle but remain within striking distance of Sydney, key employment hubs (and) international transport connections," Hotspotting's Cheapies with Prospects report said.
Median house prices ranged from $310,000-$390,000 in Hunter towns Greta, Kurri Kurri, Cessnock and Singleton. The median in Muswellbrook was just $290,000.
This was a far cry from prices in Sydney, where the median house value was close to $1 million.
Landlords could also expect higher rental returns in Hunter towns. The gross rental yield in Greta was 5.9 per cent, while in Muswellbrook it was 6.8 per cent. Sydney rental yields are under 3 per cent in most suburbs.
The Albury-Wodonga housing market was in a strong position because of a swelling population and new construction. It offered similar appeal as a destination for lifestyle buyers from bigger cities.
Houses in the region could be snapped up for $200,000-$300,000 in some instances, while vacancy rates in some suburbs were less than 0.5 per cent - indicating strong tenant demand.
"The twin cities are being impacted by the exodus to affordable lifestyle, thanks to its offering of affordable homes, a strong economy and excellent infrastructure," Hotspotting said.
The suburbs of Springdale Heights and West Albury were among Albury's fastest growing suburbs, recording median house price increases of close to 20 per cent, according to CoreLogic.
Originally published as Cheap regions where home prices will boom