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Geelong, Ballarat and Bendigo Show Signs Of Significant Investment Property Growth in 2022

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Even though Melbourne’s real estate is relatively affordable, property investors increasingly look for investment opportunities in regional areas for attractive growth opportunities and better rental yield.

As most property buyers surrender to the possibility of investment in Victoria’s popular metropolitan suburbs due to the increase in prices, the prospect of taking their hard-earned money out of town starts to look more tempting. The whole idea of property investment in regional areas has become more desirable for buyers due to the new way of working remotely which are now accepted by most organisations whilst looking for an affordable property and a more relaxed lifestyle.

For low-key investors wanting to get into the property market faster, investing in regional areas is starting to make more sense. For some diligent investors looking for opportunities to build their property investment portfolio at reasonably low cost, higher yields with high prospects of high capital appreciation in properties located in rural areas is a great option.

Many of NSW and Victoria’s regional hubs have developed excellent connectivity and accessibility to Sydney and Melbourne – thanks to transport links in major cities, regional towns have also benefitted from the ripple effect. And the investors committed to investment are re-evaluating their strategy and looking upon Central Coast, Newcastle in NSW , and Geelong, Ballarat, and Bendigo in Victoria as the hotspots – considering the infrastructure and lifestyle growth these regional centers have seen tremendous growth over the last five years, according to the Real Estate Experts.

 

Reasons behind Paradigm Shift 

Covid-19 restrictions may have eased for now, but the pandemic created a shift in many different areas of life; People changed the way they see the government in its approach of the power exercised to apparent safety, remote working conditions are now the norm and living in a police estate major cities is giving many people reasons to leave for outer regional areas that are more affordable and peaceful, with a population spike in regional areas due to immigration laws. According to the most recent data by REIV, median house prices in Melbourne crossed the $1million mark, and thus paved the way for increasing demand in regional areas, with 85% of buyers being out-of-towners (Source)

With a paradigm shift and investors looking for a ‘sure rental yield’ with a palatable price, buying a property in an area that offers financial security and sustainable growth is undoubtedly the best bet. Right now, regional areas across NSW and Victoria, are ticking all of the boxes for considerable growth, rental and employment, infrastructure, and cost of living.

With an average property price in Geelong as $728,000 compared to $563,000 in Bendigo and $500,000 in Ballarat, the three central urban suburbs have shown up to 10% or more growth in 2021 and are expected to see further increases in 2022. We can see why investors are eyeing an investment property in these three hotspots.

The current progress in Greater Geelong, Ballarat, and Bendigo is precisely the kind of hike and growth prospects property investors are looking for – that will improve the property value in the long term and ensure good returns on rental investment. Lifestyle in these areas is more relaxed and affordable with a significantly low cost of living just 100 to 150 km away from city centers.

Unemployment rates hover around 4.7 % for Ballarat and Bendigo and lower for 3.3% for Geelong, making these towns a better investment option than Melbourne, with unemployment rates around 5.2%. The considerable investment going into these three urban hubs and their surrounding areas in 2022 and beyond can only positively influence employment figures, boosting the prosperity of the local economies and almost guaranteeing investors secure reliable tenancy and excellent rental yields.

Are you ready to take advantage of the regional boom? Click here to book a time with a property consultant to explore property options with Landmark.