Property forecast strong for regional NSW
Sep 07, 2018
The NSW Government’s unveiling of its 20-year vision for a thriving regional NSW spells good news for the property market.
RiskWise Property Research CEO Doron Peleg said anyone seeking long-term capital growth would be wise to investigate buying property in the region especially given an extra 185,000 new residents were expected, on top of the population growth already predicted, by 2038.
The Government’s 20-year vision focuses on connectivity and water security to industry and community leaders in Bathurst in the State’s Central West and sets out a framework for investment that will guide the allocation of resources from the new $4.2 billion Snowy Hydro Legacy Fund.
The goal is to promote regional development and job creation, unlocking the potential in the region by providing the infrastructure, the services and the support it needs to thrive.
According to Premier Gladys Berejiklian, at the centre will be “a new generation of nation-building projects enabled by the $4.2 billion Snowy Hydro Legacy Fund” creating an additional 260,000 new jobs between now and 2038.
The vision also brings together the NSW Government’s long-term planning strategies including the Future Transport Strategy 2056 and the NSW State Infrastructure Strategy, with plans to attract an extra 185,000 new residents.
Studies and planning works will also be undertaken for an inland port and investment precinct in Parkes, known as The Parkes National Logistics Hub, which is expected to attract major employers, drive local economies and create jobs across the Central West.
Mr Peleg said population growth, job creation, an improved economy and good infrastructure would draw more people to the area and therefore increase demand for property.
“Also, regional NSW has become a more attractive property destination. While the Sydney market has cooled - and in some areas prices have actually dropped - the city is still ranked 9th in the world when it comes to poor housing affordability of family suitable units,” he said.
“The gap between the household income people need to buy a Sydney inner-city unit of just 105sqm, suitable for families, to the income they really have is so huge a household with the median income would really struggle to afford one.
“It comes down to undersupply of suitable dwellings that force the price up and make them completely unaffordable. But that is not the case in regional NSW where house sizes and blocks are more than adequate for a growing family.”
For example, in Bathurst the median house price is $422,949 and for a unit $301,644 compared to Greater Sydney which has a median house price of $1,100,355 and a median unit price of $768,142.
Bathurst also enjoys a house price-to-income ratio of 6.2 which is well below that of Greater Sydney (at 12.1) and the rest of Australia (8.4).
In Parkes, the median house price is $251,353 and the unit price $227,832, with a house price-to-income ratio of 4.4.
Mr Peleg said there was also an increasing trend of ‘mobile professionals’ who were prepared to work from home to maximise lifestyle and avoid the daily city commute.
“The bottomline is regional NSW is a great alternative location to Sydney for those looking for affordable housing with the long-term goal of solid capital growth,” he said.