New data highlights a surge in property investment activity in rural and regional areas across Australia.
Tax depreciation specialist BMT has released data that indicate rural and regional locations have experienced bumper property investment activity during the last financial year.
Port Pirie in South Australia topped the nation with a 169 per cent increase in the number of tax depreciation schedules requested during the period. New England in NSW rose 89 per cent, and Victoria’s Ovens region by 58 per cent.
“These increases may be owing to the cheaper house prices and higher rental yields found in such locations,” said BMT managing director Brad Beer.
“With many capital cities experiencing considerable capital gains over the past few years, some investors appear to be seeking out alternative market segments in order to enter the market faster and at a lower price, while still realising a solid return.”
Increases in individual rural and regional locations significantly outpaced state-wide average activity growth in South Australia (20 per cent), New South Wales (23 per cent) and Victoria (19 per cent).
The South Australian wine region of Riverland came in second nationwide with a 141 per cent rise in investment.
The city of Nowra, on the NSW south coast, saw a 64 per cent hike.
Tasmania’s north east region rose 46 per cent, despite greater Tasmania experiencing no increase.
Logan City, between Brisbane and the Gold Coast – three quarters of which is covered by wooded vegetation – moved up 66 per cent, while greater Queensland achieved just 19 per cent.
According to BMT, these types of towns and regions have been generating investor interest for more than just the past financial year, with Logan City in particular steadily transforming into a vibrant hub of investment activity.
“These locations present a unique opportunity for investors willing to think outside the box and take advantage of regions able to still provide returns but at a much lower cost of entry,” Mr Beer said.