According to InvestorKit’s latest whitepaper, four SA3 regions out of an analysed 20 have property that can be purchased for under $500,000, and are pegged for strong future growth.

The selected regions by InvestorKit include Bundaberg, Townsville, Rockhampton, and South Cairns.

InvestorKit Head of Research Arjun Paliwal said there are still areas where owner-occupiers and investors can buy property at affordable entry-level prices and experience long-term capital gains.

“Not only do these areas have affordable house prices, but they also show the potential for further capital growth, healthy rental yields and expected rental growth in the short term due to the high pressure in their sale and rental markets,” Mr Paliwal said.

“These locations also stand out because of internal migration towards affordability and lifestyle alongside their thriving local economies due to industry diversification and infrastructure investments.”

The four regions below achieved the highest Market Performance Score (out of 5). A higher score correlates with a strong economy and a good time to invest in the market. 

Bundaberg 

Market performing score: 4.2

Median house price: $445,000

Over the past 10 years, Bundaberg’s house prices have increased 50.8%.

Mr Paliwal said the region stood out as one of the top 10 performers in 2022 despite consecutive interest rate rises clouding market sentiment.

“There is more room for growth, as the 10-year average is still under 25-year averages for annual growth,” he said.

Vacancy rates in Bundaberg are currently at 0.6%, while investors can expect rental yields of 5.3% given the tight conditions. 

Rockhampton

Market performing score: 4.8

Median house price: $385,000

Over the last 12 months, Rockhampton has seen house prices rise by 5.5%. 

Meanwhile, the median house price has increased by 16.7% over the past decade. 

The region’s rental market has been under pressure over recent years, with the average number of rental listings decreasing by 3.8%. Vacancy rates remain below 1%. 

Mr Paliwal expects more robust growth to come considering its strengthening local economy and increasing market pressure. 

Townsville

Market performing score: 5

Median house price: $400,000

Townsville achieved the highest market performing score, with house prices increasing by a total of 9.6% over the last 12 months. 

In terms of decade-average growth, median prices in the region only recorded an 8.7% gain, which is far below its long-term average growth.

Vacancy rates remain below 1% despite a slight increase (0.3%) in listings over the past year. Investors can expect yields of around 5%.

“What can’t be underestimated here is the sheer level of shift in the city’s local economies - from one of the worst in 2016 to now one of the nation’s best in unemployment levels, spending and more,” Mr Paliwal said.

“Prices and rents in our opinion remain heavily undervalued here, irrespective of what one may think of with outgoings, weather and more.”

South Cairns 

Market performing score: 4.7

Median house price: $482,500

Cairns South, which includes areas such as Woree, White Rock, Mount Sheridan, and Bayview Heights, has seen house prices grow by 12.2% over the last year.

The past decade has seen a balanced increase of 47.7% in house prices in the area, still below its long-term averages, hinting at room for growth.

Vacancy rates in Cairns South are at crisis levels, currently at 0.4%. However, the upward pressure within the rental market has resulted in a strong rise in median rents over the past 15 months.


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Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
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$2,408
Principal & Interest
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$530
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$2,396
Principal & Interest
Variable
$0
$0
80%
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6.16% p.a.
$2,434
Principal & Interest
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$250
60%
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Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Image by Steve Davison via Unsplash





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