The 10 best suburbs in Regional NSW for first home buyers

Find out which suburbs in Regional New South Wales made the top 10 list in Canstar’s Bright Starters Australian First Home Buyer Report powered by Hotspotting.

There are plenty of great locations in Regional New South Wales where you can buy a home for less than $429,000. This was the cut-off price we used to come up with our ‘Bright Starter’ suburbs in this region. (For more on why we chose this see our full report.)

Of course, price isn’t the only consideration for first home buyers. A good lifestyle and prospects for growth should also be on the checklist. In Canstar’s inaugural Bright Starters Australian First Home Buyer Report we used five key metrics – sales volumes, price growth, vacancy rates, infrastructure and proximity to work and amenities – to identify suburbs that are desirable and likely to grow in value over time. Check out our list below.

The 10 best suburbs in Regional New South Wales for first home buyers

• Armidale 
• Lavington
• Moree 
• Muswellbrook 
• Orange (Units)
• Parkes 
• Queanbeyan (Units) 
• Tolland 
• Tweed Heads West (Units)
• West Tamworth 

Armidale

This is the kind of regional centre being targeted by big-city refugees. It’s an attractive city with history and economic diversity, including a big education economy, as well as agriculture and tourism. Government departments are based there and it’s part of an important renewable energy zone promoted by the NSW Government. This means jobs are being created and real estate demand is high, helped by the city’s affordability.

Lavington

This is the largest suburb in Albury, one of the most popular in the Albury-Wodonga twin-city region (more than 300 house sales in the past year) and still one of the cheapest despite big recent price growth. Vacancies near zero are testimony to its popularity. It’s well situated to access infrastructure/jobs nodes including Charles Sturt University and Albury Airport, amid a region with one of Regional Australia’s most dynamic economies.

Moree

Major new infrastructure can transform the appeal of a location and Moree in north-west NSW provides a case study. Already an important centre for agriculture and tourism, Moree’s economy and property market has been boosted by construction of the $13 billion inland rail link, for which Moree is a key hub, bringing increased economic activity and jobs. The median price for Moree rose more than 40% in 2021, but it remains below $300,000.

Muswellbrook

The Hunter Region is in a growth phase, boosted by the affordable lifestyle trend and infrastructure projects. The area is known for coal mining, power generation and horse breeding, but also has a reputation for gourmet food and wine production. The property market has a boom-bust history but is now in a revival phase, with prices up 17% in the past year, but with houses still priced in the $300,000s.

Orange (Units)

Orange is the epitome of the ‘Exodus to Affordable Lifestyle’ trend – an attractive city amid wine country, lots of amenities and employment options, within a few hours of Sydney. Orange is a growing city with a diverse economy, including government departments, a big health precinct, manufacturing and one of Australia’s largest gold mines. Recent growth has lifted the price of typical houses above $550,000 but units, with a median price of $350,000, provide an affordable option.

Parkes

The home of the famous “Dish” has long been an important regional centre for agriculture and transport logistics, boosted by the Parkes Observatory which played a role in the 1969 moon landing. Its economic importance has been elevated by the $13 billion Inland Rail Link, for which the official launch was held in Parkes. This will create economic activity and jobs. The median price has increased by 35% in three years but remains below $350,000.

Queanbeyan (Units)

Canberra is an expensive city with house prices too rich for most first home buyers but nearby Queanbeyan can provide an affordable alternative. Queanbeyan is in NSW but effectively is part of the Canberra metropolitan area, just 15-20 minutes from the centre of the nation’s capital. The median price for houses is above $700,000 but the median for units is below $400,000. Its proximity to Canberra Airport is another plus.

Tolland

Wagga Wagga has performed well recently as the key centre for the Riverina district, where the infrastructure includes military bases which are undergoing billion-dollar expansions. The suburb of Tolland is popular as one of the cheapest Wagga suburbs and vacancies are well below 1%. Demand generally is destined to rise, boosted by major expansion of local medical, transport, resources & energy and military infrastructure.

Tweed Heads West (Units)

The Tweed region is in NSW but in many ways is part of the Gold Coast – and is considerably closer to the Gold Coast International Airport than most suburbs of the Gold Coast. Tweed Heads West is a water-based suburb with an enviable lifestyle, including the Cobaki Nature Reserve. Units, with a median price of $385,000, provide attainable options for young buyers.

West Tamworth

The iconic regional centre of Tamworth is attracting government investment to evolve its role as a transport hub and a focus on renewable energy projects. It offers a high level of affordability – many suburbs have median prices in the $200,000s, including West Tamworth, despite recent major price rises. The suburb is well-located for services and jobs, on the edge of the city centre, and includes the Tamworth Golf Club.

The best suburbs in Regional New South Wales for first home buyers

← Mobile/tablet users, scroll sideways to view full table →

Sources: Median price, growth and median rent: CoreLogic as at 1 February 2022. Initial outlay, time to save and repayment data: canstar.com.au as at March 2022. (U) stands for units. *Initial outlay includes the deposit, stamp duty, transfer fee and mortgage registration fee.  ^Time to save calculations are based on the time required to save up the initial outlay costs with the average income (ABS Personal Income by greater capital city statistical area, adjusted by ABS Wage Price Index, June 2021). Calculations assume that 20% of after-tax income is saved each month, earning a savings rate of 0.62% (average bonus savings rate over the past 12 months to 1/03/22). 2021/22 tax rates plus the 2% Medicare Levy are applied to the annual income and savings interest, and inflation of 2.5%pa is applied to income and property price. Dual income calculations assume there are two savers with the average income. Actual time to save will vary depending on your individual circumstances as well as the rate of property growth.  +Repayment calculations assume principal and interest repayments over a 30-year loan term with an interest rate of 3.36% (average owner-occupier variable rate over the 12 months to 1 March 2022). LMI for an owner-occupier first home buyer (per Genworth LMI Premium Calculator) is included in the loan amount for the 10% deposit monthly repayment calculations. For initial outlay, time to save and repayment data based on a 20% deposit download the full Bright Starters report.

Cover image source: Chris Andrews Fern Bay/Shutterstock.com

About Terry Ryder

Terry is the founder and Managing Director of hotspotting.com.au, which he created in 2006 to help investors find the best places to buy. Terry has been a specialist researcher and writer on Australian residential property in a career spanning four decades. During that time he has published four books.

Thanks for visiting Canstar, Australia’s biggest financial comparison site*