A handful of established regional centres are set to provide investors with better outcomes than their strained capital counterparts over the year, real estate agency PRDnationwide predicts.
Anaysts from PRDnationwide said that despite the uncertainties of the coronavirus crisis, regional property markets have historically tended to be more resilient compared to their capital city counterparts—due to being slightly more withdrawn and insulated from economic shocks.
Recent Corelogic data has reflected this, if only moderatley, with capital city markets showed a weaker performance relative to the regional markets over April.
Corelogic revealed that combined capital cities index were found to be up 0.2 per cent compared with a 0.5 per cent rise across the combined regional markets.
Over recent years, regional areas have often performed well due to the consistent infrastructure improvements and cheaper house prices.
Across the country there has been a greater push for low-density living as more people look for opportunities away from large cities, as the coronavirus crisis continues.
A number of experts have even pointed to Australia's traditional suburban quarter-acre block as one of the main factors and points of difference for successfully keeping the nation's infection and death rate low.
PRDnationwide noted that there also continues to be regional appetite from first home buyers who often find themselves priced out of city locations.
PRDnationwide analysed regional areas across the country, finding hot spots that not only have median price affordability, but also provide strong indicators for property investment, local employment growth, and a sustainable economic future.
Analysts weighed regions on affordability, transactions over the past two years, rental yields, under construction and proposed development and unemployment.
Regional centres primarily in Queensland, New South Wales and Victoria are now tipped to provide both affordable prices and higher returns for investors as slower market conditions in capital cities weigh on sentiment and transaction levels.