Regional Queensland’s property affordability, high-yielding returns and low vacancy rates meant that it was time for investors to ditch Sydney and Melbourne and start looking at investing in the sunshine state, Raine & Horne Queensland said.
Its general manager Steve Worrad said towns such as Rockhampton, Nanango, Bundaberg, Kingaroy and Hervey Bay had loads of quality rental properties as low as $145,000, which is a fraction of the price of a Sydney or Melbourne apartments.
“Many regional markets have low vacancy rates and properties delivering returns of 7-8 percent.
“The biggest problem for these regional centres is that the great investment opportunity remains a secret to Australia’s largest audience of investors in NSW and Victoria.”
Worrad urged investors to consider buying into regional Queensland towns with strong, diversified economies that provide plenty of job opportunities, such as Nanango.
Located in the South Burnett region, Nanango is a two-hour drive from Brisbane’s northern suburbs.
“The South Burnett region is tipped to become ‘Queensland’s Hunter Valley’ thanks to our expanding wine industry,” Greg Pogson, principal, Raine & Horne Nanango said.
“The region is already home to the coal-fired Tarong power station, which is a major employer. Also, 115 wind turbines will soon be built at Coopers Gap, near Cooranga North, after the state government approved the project in early March.
“What’s more, the median 3-bedroom house price in Nanango is $180,000, which can generate rents of $250 a week. This is a gross yield of more than seven percent, which is very attractive compared to Sydney, where the median house price is almost $900,000, and median rental yields are 2.8 percent,” Pogson said.
On the Fraser Coast, Bundaberg is 45-minutes from Brisbane by air and four hours by road.
“Bundaberg is a major hub for the region, providing health care, retail and other essential services for communities in the surrounding areas,” said Josh Rub, Principal, Raine & Horne Bundaberg.
“It’s a key employment centre for the region. There are growing areas of employment that are likely to draw more people to Bundaberg in the future, including the aviation industry, healthcare, technology and professional services.
“Moreover, the construction of the gas pipeline has led to new enterprises launching in Bundaberg including the Knauf Plasterboard manufacturing plant, which will increase the use of the underutilised Port of Bundaberg. In turn, the expansion of the port’s activities will attract more business to the region.”
Rub said the Queensland government has recognised the port’s potential and has flagged areas around it for development.
“The Bundaberg Regional Council is moving forward with its infrastructure spending, and it is backing this support with discounts on development fees that will enable businesses to spend more money on new building works.”
“Tourism is seeing an uptick in Queensland, and that could also mean more employment opportunities in the hospitality industry, given Bundaberg’s proximity to the Great Barrier Reef,” Rub said.
Furthermore, Bundaberg offers investors an irresistible combination of real estate affordability and generous rental yields.
“It’s possible to buy a three-bedroom entry-level property in Bundaberg from $180,000, which can rent for $270 a week. This represents a very competitive yield of 7.8 percent in the current low-interest rate environment,” Rub said.
“Hervey Bay has benefited from significant improvements in health facilities and infrastructure in the Hervey Bay Hospital and St Stephen’s Private Hospital precincts, according to Graham Cockerill, Principal, Raine & Horne Hervey Bay.
“Once people visit Hervey Bay and witness for themselves the lifestyle it offers, they want to stay or buy a place they can retire to later in life or bring up a family,” Cockerill said.
“In the past, many buyers noted this region’s limited health care facilities. Now we have an industry which is not only a major employer but also provides the infrastructure needed to support the town’s health care needs, and that is making a big difference.”
Cockerill said Urangan and Point Vernon as Hervey Bay’s best-performing suburbs.
“Urangan and Point Vernon are at opposite ends of Hervey Bay, and their popularity can be attributed to their quieter appeal and proximity to the beach,” Cockerill said.