Regional NSW Best Real Estate Investment Areas for 2023

6 September 2023

Regional NSW Best Real Estate Investment Areas for 2023

Sydney’s property market has a reputation for being one of the most competitive and risky real estate landscapes in Australia. But despite this demand for housing in the city, many investors are turning their eyes to the regional areas in NSW in search of hidden gems. 

With lower average property prices, real estate in regional NSW could be a source of approachable and easy investment wins for those deterred by the city’s skyrocketing prices — the wave of young professionals moving to the quieter regional areas in NSW means more demand for housing. To give you an insight into this trend, we’ve put together this list of regional NSW’s best investment areas:  

Factors to consider when investing in regional NSW real estate

Dubbo

As the largest population centre in the Orana region, Dubbo is located 303 km northwest of Sydney and is a major road and rail freight hub to other parts of New South Wales.

Dubbo is best known for its tourist destinations, such as the Western Plains Zoo, the Dubbo Botanic Gardens, the Old Dubbo Gaol, and the Australian Fossil Museum, making it a popular tourist hub. With a strong economy and a growing population, Dubbo is experiencing a high demand for housing, making it an ideal investment opportunity. 

Region: Orana Region

Population: 43,369

Median house price: $550,000

Median unit price: $360,000

Median rental price: $330 per week

Median rental yield: 5.8%

Lake Macquarie

Lake Macquarie is located on the Central Coast and is the second largest city in the Hunter region, just after Newcastle. Most locals and visitors are drawn to its beautiful lake, beaches, and mountainous surroundings, making it a truly idyllic location for both residents and renters. The city’s stable economy, supported by various sectors including tourism, healthcare, and education, provides a foundation for consistent returns on investment.

Lake Macquarie’s proximity to major cities Newcastle and Sydney also increases its accessibility through major road networks, enhancing its appeal to those seeking a serene lakeside lifestyle with urban amenities. With a median house price under 1 million, this is a highly attractive choice for modern investors who want to tap into the demand for waterfront living.

Region: Hunter Region

Population: 286,019

Median house price: $900,000

Median unit price: $600,000

Median rental price: $500 per week

Median rental yield: 4.0%

Goulburn

Nestled in the Southern Tablelands, Goulburn is an emerging investment destination that presents a range of opportunities for astute investors. The city offers a diverse real estate landscape, from historic homes to modern developments, catering to various investment preferences.

Goulburn’s affordability compared to larger metropolitan areas, combined with its accessible location along the Hume Highway, makes it an enticing option for investors looking to capitalise on the city’s potential and evolving property market. 

Region: Southern Tablelands Region

Population: 27,307

Median house price: $550,000

Median unit price: $350,000

Median rental price: $350 per week

Median rental yield: 5.5%

Armidale

Situated in the Northern Tablelands Region, Armidale is a captivating investment destination that combines a unique blend of natural beauty and cultural charm. Armidale’s most notable landmark is its prestigious University of New England, attracting students and faculty from across Australia.

This makes it an educational hub, complete with all the fairings of amenities and infrastructure, while retaining natural attractions like national parks and waterfalls for a balance between an urban and remote atmosphere. With a unique blend of culture, education, and natural beauty, Armidale is an investment opportunity worth exploring.

Region: Northern Tablelands Region

Population: 29,944

Median house price: $650,000

Median unit price: $450,000

Median rental price: $400 per week

Median rental yield: 5.0%

Wagga Wagga

Laid-back Wagga Wagga sits in the Riverina region as a quaint but thriving regional city. Its diverse real estate market offers a range of properties, from family homes to modern apartments. 

Wagga Wagga’s strong sense of community is complemented by its dynamic cultural scene with events like the Wagga Wagga Jazz and Blues Festival, as well as its reputation for being the “City of Good Sports”. Investors seeking a regional hub with strong growth potential should consider Wagga Wagga as a prime investment destination.

Region: Riverina Region

Population: 68,222

Median house price: $600,000

Median unit price: $400,000

Median rental price: $350 per week

Median rental yield: 5.3%

Top Regional NSW Real Estate Investment Areas for 2023

Port Macquarie

With its pristine beaches and coastal lifestyle, Port Macquarie is a stunning investment gem that few have discovered. Its location along the NSW coastline gives it immense potential for future development, and its wide availability of various property options, from beachfront homes to urban apartments, makes it an attractive choice. 

Additionally, its accessibility via major highways and a regional airport increases its connectivity. At a median house price of just $800,000 for a slice of coastal living, Port Macquarie is a regional area worth investing your money in. 

Region: Mid North Coast Region

Population: 72,215

Median house price: $800,000

Median unit price: $500,000

Median rental price: $450 per week

Median rental yield: 4.7%

Muswellbrook

Muswellbrook, situated in the heart of the Upper Hunter Region of New South Wales, is an inviting investment location with a unique blend of rural beauty and economic potential. Muswellbrook’s economy is anchored in the mining, agriculture, and energy sectors, providing a strong foundation for residents and investors alike. 

The city, surrounded by rolling hills and scenic countryside, has a welcoming community featuring excellent amenities, schools, and healthcare facilities. Muswellbrook’s picturesque nature and potential for growth make it a difficult investment option to ignore. 

Region: Hunter Region

Population: 33,186

Median house price: $650,000

Median unit price: $450,000

Median rental price: $400 per week

Median rental yield: 5.0%

Parkes

Parkes, situated in the heart of the Central West region, is an enticing investment destination characterised by its untapped potential for growth. As the area with the lowest property prices on this list, Parkes’ real estate market is extremely approachable. 

The city’s selection of properties features a good pool of classic family homes with the inclusion of more modern apartments, all within close proximity to a collection of amenities, educational institutions, and healthcare services. 

Region: Central West Region

Population: 15,871

Median house price: $350,000

Median unit price: $250,000

Median rental price: $250 per week

Median rental yield: 6.0%

 

Finding the Right Investment in Regional NSW 

Suburb Median house price Median unit price Median rental price Median rental yield
Dubbo $550,000 $360,000 $330 per week 5.8%
Lake Macquarie $900,000 $600,000 $500 per week 4.0%
Goulburn $550,000 $350,000 $350 per week 5.5%
Armidale $650,000 $450,000 $400 per week 5.0%
Wagga Wagga $600,000 $400,000 $350 per week 5.3%
Port Macquarie $800,000 $500,000 $450 per week 4.7%
Muswellbrook $650,000 $450,000 $400 per week 5.0%
Parkes $350,000 $250,000 $250 per week 6.0%

Each of the regional areas on this list features a great potential for investment without the cutthroat competition of a major city like Sydney. Do keep in mind that seeing returns from any investment takes time and the right knowledge, so be sure to always do your research before making any significant decisions. 

Use our handy table above for a quick summary of the best investment areas for regional NSW in 2023. Whether you’re looking at a beachfront property in Port Macquarie or a cozy family home in Armidale, a regional property buyer’s agent familiar with the location and purchase process can help provide the appropriate advice for finding your next real estate gem. Contact Wise Buy Group to start securing your ideal regional investment today.