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Country Real Estate Out-performs

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Regional properties are performing well, with new figures revealing significant returns for investors outside the capital cities.

CoreLogic figures for the December Quarter show houses in regional areas returned a gross rental yield of 4.1%, compared with 2.8% in capital cities.

Between March 2020 and the end of 2021, regional house values increased 32% compared with 20% in capital cities.

Simon Pressley of Propertyology says even though many of the best-performing and yielding markets are in the regions, many buyers lack the confidence to buy outside the city markets.

He warns there are some risks associated with investing in regional areas and that investors must do their homework before committing.

Pressley says Coffs Harbour, Armidale, Dubbo, Orange and Wagga in New South Wales meet good investment criteria as do Wodonga, Mildura, Bendigo, Shepparton, Ballarat and Geelong in Victoria. The Rising Stars report published by Canstar and Hotspotting ranks three regional jurisdictions (NSW, Queensland and WA) as the top rated markets.

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