The past year saw a high influx of first home buyers entering the property market, driven by record-low interest rates, government support and lenient bank lending policies.

According to the latest PRD Stand Out Regions report, it ultimately resulted in annual growth of 50.4 per cent between the December 2019 and December 2020 quarters across the Australian property market.

With capital cities seeing median house prices increasing by 6 per cent to $825,205 and home affordability index decreasing by -1.8 per cent, first home buyers are in search of more affordable options.

As a result, “regional areas have become the most attractive option throughout 2020, with evidence of buyers capitalising on lower median property prices”, the report noted.

More buyers have also become open to, or interested in, regional investing, as flexible remote working was introduced amid COVID-induced lockdowns and restrictions. Record-low vacancy rates and high rental return also attract buyers to regional markets.

Through five selection criteria — affordability, property trends, investment, project development and unemployment rate — PRD has determined the top 10 affordable regional areas across Australia.

“These areas not only have median price affordability, but also provide strong indicators for property investment, local employment growth, and a sustainable economic future,” it highlighted.

Queensland

Whitsundays (North Queensland)

Median house price: $375,000
Median unit price: $260,000
Median land price: $155,000

(as of Dec 2020)
Vacancy rate: 1.5 per cent
House rental yield: 5.7 per cent
Unit rental yield: 6.7 per cent

Estimated value of developments in 2021: $1,486,900,000

(as of Sep 2020 qtr)
Unemployment rate: 6.4 per cent

Toowoomba (South East Queensland)

Median house price: $380,000
Median unit price: $315,000
Median land price: $185,000

(as of Dec 2020)
Vacancy rate: 0.9 of a percentage point
House rental yield: 5.0 per cent
Unit rental yield: 5.3 per cent

Estimated value of developments in 2021: $1,360,261,000

(as of Sep 2020 qtr)
Unemployment rate: 6.7 per cent

Mackay (North Queensland)

Median house price: $380,000
Median unit price: $315,000
Median land price: $185,000

(as of Dec 2020)
Vacancy rate: 0.9 of a percentage point
House rental yield: 5.0 per cent
Unit rental yield: 5.3 per cent

Estimated value of developments in 2021: $1,360,261,000

(as of Sep 2020 qtr)
Unemployment rate: 6.7 per cent

New South Wales

Port Stephens (north of Sydney)

Median house price: $619,750
Median unit price: $425,000
Median land price: $254,000

(as of Dec 2020)
Vacancy rate: 0.5 of a percentage point
House rental yield: 3.9 per cent
Unit rental yield: 5.5 per cent

Estimated value of developments in 2021: $1,357,471,000

(as of Sep 2020 qtr)
Unemployment rate: 5.6 per cent

Federation (Riverina Region)

Median house price: $293,500
Median unit price: $253,000
Median land price: $130,000

(as of Dec 2020)
Vacancy rate: 0.8 of a percentage point
House rental yield: 4.9 per cent
Unit rental yield: 5.4 per cent

Estimated value of developments in 2021: $1,121,215,000

(as of Sep 2020 qtr)
Unemployment rate: 4.1 per cent

Greater Hume (Southern NSW)

Median house price: $237,500
Median unit price: $270,000
Median land price: $121,000

(as of Dec 2020)
Vacancy rate: 1.0 per cent
House rental yield: 4.5 per cent
Unit rental yield: 5.6 per cent

Estimated value of developments in 2021: $578,422,000

(as of Sep 2020 qtr)
Unemployment rate: 2.8 per cent

Victoria

Greater Geelong (Southern Vic)

Median house price: $590,000
Median unit price: $460,000
Median land price: $285,000

(as of Dec 2020)
Vacancy rate: 0.9 of a percentage point
House rental yield: 3.6 per cent
Unit rental yield: 4.1 per cent

Estimated value of developments in 2021: $7,521,939,000

(as of Sep 2020 qtr)
Unemployment rate: 4.6 per cent

Greater Bendigo (Central Vic)

Median house price: $415,000
Median unit price: $305,000
Median land price: $164,000

(as of Dec 2020)
Vacancy rate: 0.8 of a percentage point
House rental yield: 4.5 per cent
Unit rental yield: 5.8 per cent

Estimated value of developments in 2021: $1,206,859,000

(as of Sep 2020 qtr)
Unemployment rate: 5.4 per cent

Warrnambool (South-western Vic)

Median house price: $408,000
Median unit price: $317,000
Median land price: $150,000

(as of Dec 2020)
Vacancy rate: 0.4 of a percentage point
House rental yield: 4.4 per cent
Unit rental yield: 5.8 per cent

Estimated value of developments in 2021: $591,401,000

(as of Sep 2020 qtr)
Unemployment rate: 3.5 per cent

Tasmania

Circular Head (North-western Tas)

Median house price: $255,000
Median unit price: $227,000
Median land price: $85,000

(as of Dec 2020)
Vacancy rate: 0.4 of a percentage point
House rental yield: 4.7 per cent
Unit rental yield: 3.5 per cent

Estimated value of developments in 2021: $1,425,218,000

(as of Sep 2020 qtr)
Unemployment rate: 4.7 per cent