Regional towns in Queensland and NSW are usurping more high-profile capital city suburbs when it comes to property investment opportunities, according to new research.
Westpac’s City versus Country Investment Snapshot, developed in partnership with RP Data, has uncovered some key insights for those considering investing in both houses and units in either metropolitan or regional areas in several states.
The report found that regional areas came out on top in NSW, with Broken Hill the state's best performing suburb overall. Meanwhile, for investment housing property in metropolitan NSW the best performing suburb was Pemulwuy in Sydney's west, with a total return of 15.9 per cent, followed by Zetland at 13.9 per cent and Ultimo at 12.5 per cent.
The figures are based on the combined annual capital gain over 10 years and current gross rental return.
"Investment properties are all about the financial return – a completely different proposition to buying a home that you want to live in, which has a significant emotional investment attached. Arming yourself with as much data as possible to make informed decisions is crucial to building long-term wealth,” said Gai McGrath, general manager of retail banking at Westpac.
The report also showed that despite the downturn in the mining sector, investors in mining towns such as Mount Isa and Mackay are still enjoying the good times.
Houses in Parkside and Winston in Mount Isa are commanding total returns of 24.7 per cent and 22.5 per cent respectively, while apartments in Mackay offer returns of 20.3 per cent.
In WA, city suburbs dominate, with Wattle Grove the state's best performing property investment suburb, with houses commanding a total return of 26.1 per cent.
The state’s top three best performing suburbs were all located in metropolitan areas, with Wattle Grove followed closely by Bertram at 24.1 per cent and Southern River at 23.7 per cent.
According to the report, Port Augusta West was South Australia's best performing area overall, with a total return of 20.5 per cent for units.