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A regional city located 254 kilometres west of Sydney has been dubbed a property market to watch, with capital growth and rental income gains among the best of hotspots.
Orange, NSW, is the property market keen investors should be keeping a close eye on, according to Propertyology head of research Simon Pressley.
Mr Pressley and the team at Propertyology consider the city with a population of 41,000 to be one of the strongest markets in Australia, based on numerous research captured over the past five years.
“For (both) capital growth and rental income growth, the property market in Orange, NSW, has already been one of the best in the country over the last five years,” Mr Pressley said.
According to the researcher and property enthusiast, the past five years have seen capital growth in Orange increase by 38.6 per cent and rental growth by 15.2 per cent.
By comparison, Sydney has seen capital growth of +22.2 per cent and rental growth of +5.8 per cent over the past five years, according to Propertyology research, which found that Hobart, Tasmania, has been the only capital city to record higher growth in both capital growth (+58.8 per cent) and rental growth (+39.4 per cent) than Orange.
“38.6 per cent capital growth over the last five years is superior to seven out of eight capital cities,” Mr Pressley said.
“A rental yield of 5 per cent also means that, at a time when interest rates are circa 3 per cent, investment incomes cover all holding costs. Plus, rents have already increased by a significant 15 per cent over the last five years.”
Mr Pressley added the Orange economy is “one of the strongest in Australia”, further cementing its status as an enviable hotspot for investors looking to expand their portfolio.
“Even during COVID, the performance of the local tourism trade has been solid. Hotels and short-term accommodation businesses have had near 100 per cent occupancy since Easter,” he said.
“Tourism, agriculture, mining, manufacturing, health and education underpin the incredibly diverse economy of Orange.
“The growing economy will place additional pressure on Orange rents.”
In conclusion, Mr Pressley said property investors in Orange are “very well positioned to ratchet up rents while enjoying another surge of capital growth”.
“Orange is one of many really strong regional cities that Propertyology describes as a ‘mini capital city’. They have good-quality infrastructure such as modern hospitals, universities and easy access via their expanding airports. People are attracted to the calmness and high-quality lifestyle, great restaurants, cafés and food experiences using local produce,” he said.
“Propertyology helped some of our clients invest in Orange a few years ago. Right across Australia, there are umpteen great locations just like this. Investors would be wise to remove their blinkers and personal biases. You owe it to your own future to objectively assess fundamentals of every location.”
ABOUT THE AUTHOR
Emma Ryan
Emma Ryan is the deputy head of editorial at Momentum Media.
Emma has worked for Momentum Media since 2015, and has since been responsible for breaking some of the biggest stories in corporate Australia, including across the legal, mortgages, real estate and wealth industries. In addition, Emma has launched several additional sub-brands and events, driven by a passion to deliver quality and timely content to audiences through multiple platforms.
Email Emma on: Emma.Ryan@momentummedia.
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