New analysis from property market research firm Propertyology has revealed 39 locations across Australia that possess the right ingredients for stellar returns—and with median house prices below $400,000.
Propertyology analysed criteria such as affordability, economic diversity, essential infrastructure, lifestyle, increased demand for housing, and expected improvement in economic conditions when compiling its list of hot spots.
“I am not a betting man. However, each of these 39 locations has a superior three-year outlook compared to Sydney and Melbourne,” said Simon Pressley, head of property market research at Propertyology.
“Some home owners, particularly in the big cities, think nothing of spending $400,000 on a renovation or $800,000 to $1 million to buy a single property. However, for the same amount, you can buy two or more affordable properties in locations with considerable upside growth potential and rental returns that generate positive or near-positive cash flow.”
Pressley added that savvy investors look beyond the high-priced capital city property markets when building their portfolios. Based on the total return of capital gains plus rental income, many affordable locations have outperformed capital city markets over the long-term.
“One in three Australians has chosen not to live in capital cities. Much improved employment opportunities in regional locations, combined with housing affordability constraints in the big cities, has increased demand for real estate in regional areas.
“Affordable property is available in every state and territory so there is no need to buy property in locations that are past the peak of the latest cycle and will burden you with significant out-of-pocket expenses.
“Interstate migration figures are already showing a shift away from Sydney to affordable lifestyle locations, many of which are now accessible by a one-hour direct flight.”
Here’s the complete Propertyology list:
| Location | Median house price | Location | Median house price |
| Albany WA | $380,000 | Logan QLD | $400,000 |
| Albury NSW | $330,000 | Mackay QLD | $330,000 |
| Ararat VIC | $192,000 | Mount Gambier SA | $255,000 |
| Armidale NSW | $360,000 | Narrabri NSW | $290,000 |
| Ballarat VIC | $328,000 | Onkaparinga SA | $360,000 |
| Bendigo VIC | $327,500 | Orange NSW | $367,500 |
| Bunbury WA | $330,500 | Parkes NSW | $241,000 |
| Bundaberg QLD | $296,000 | Port Augusta SA | $192,500 |
| Burnie TAS | $224,500 | Port Lincoln SA | $300,000 |
| Cairns QLD | $400,000 | Rockhampton QLD | $270,000 |
| Corangamite VIC | $227,000 | Shepparton VIC | $260,000 |
| Devonport TAS | $250,000 | Sorell TAS | $313,500 |
| Dubbo NSW | $360,000 | South Gippsland VIC | $285,000 |
| Gawler SA | $335,000 | Tamworth NSW | $335,000 |
| Geraldton WA | $315,000 | Toowoomba QLD | $375,000 |
| Glenorchy TAS | $320,000 | Townsville QLD | $340,000 |
| Griffith NSW | $308,000 | Wagga Wagga NSW | $350,000 |
| Hervey Bay QLD | $320,000 | Warrnambool VIC | $325,500 |
| Ipswich QLD | $341,000 | Wodonga VIC | $330,000 |
| Katherine NT | $322,500 |
Related Stories:
Sydney And Melbourne Investors—Get Out Of Town
Strong Price Growth Areas In Regional Oz
