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NSW agents have been witnessing a surge in investor interest across regional markets, with one real estate network reporting a sharp rise in enquiries in recent months.
According to Raine & Horne enquiries for regional markets in NSW have increased by 20–30 year-on-year, as investors seek out strong rental demand and higher yields.
Raine & Horne senior broker, Craig Betalli, said the interest in regional areas has been prompted by the three rate cuts, which pushed investors to rethink their strategies for achieving high yields.
“Lower borrowing costs have given investors more confidence, and many are asking how they can maximise the benefit of those cuts,” Betalli said.
“Regional markets offer a compelling answer with investors able to get more bang for their buck while tapping into strong rental demand and higher yields.”
Recent Cotality data showed that Sydney’s median house price is $1.521 million, delivering gross investment yields of around 3 per cent.
In comparison, regional NSW has a median of $802,000 with average yields of 4.2 per cent, which can be higher depending on the areas.
Betalli said that across the state, Bathurst, Young, Lismore, Inverell and Casino have seen a surge in demand due to their affordability and lifestyle benefits, which combine with attractive yields.
“It’s not just experienced investors and self-managed super funds chasing these opportunities,” he said.
“We’re also seeing first-time investors who want to step into the market at an accessible price point.”
Principal of Raine & Horne Casino, Kate Morgan, said that in NSW’s Northern Rivers region, investor demand has been on the rise, but supply remains limited.
“We’re fielding strong enquiries from investors, but the challenge is a lack of stock coming to market,” Morgan said.
She said a standard three-bedroom rental property in the region sells for around $500,000, and rents are between $480 and $500 a week, demonstrating the town’s 5 per cent gross rental yield.
Morgan also urged property owners considering selling to take advantage of the current surge in demand from investors and limited supply.
In Bathurst, Raine & Horne said that investors have been regaining market share after first home buyers and owner-occupiers dominated sales for much of this year.
Director of Raine & Horne Bathurst, Grant Maskill-Dowton, said that while investor sales were dramatically down over a six-month period, the tide has turned in the last two months.
“We’re getting far more questions about rent returns, vacancy rates, and cash flow,” he said.
“That wasn’t happening earlier in the year. It shows investors are back in the market and doing their homework.”
Furthermore, the network has observed an ultra-tight vacancy rate of 0.05 per cent which, combined with generous rental yields, fuels investor confidence.
“For example, a $700,000 property in Bathurst might rent for around $600 a week,” Maskill-Dowton said.
“Those investors we are seeing coming through our open homes are very serious.”
“Some are locals, and we’re even fielding interest from Sydney buyers – a positive sign that Bathurst is firmly back on the radar,” he concluded.
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