10 best suburbs in Regional New South Wales to invest in 2024
One of the myths of residential real estate is that regional markets generally follow the lead of their capital cities, but Regional New South Wales provides evidence that it isn’t so.
20 Mar 2024
One of the myths of residential real estate is that regional markets generally follow the lead of their capital cities, but Regional New South Wales provides evidence that it isn’t so.
Sydney is one of Australia’s most buoyant property markets, but Regional NSW remains decidedly lukewarm. It has an overall ranking of ninth among the 14 market jurisdictions analysed in this report; with below average results in four of the five metrics in the analysis. There were signs of property market recovery in some NSW regions in 2023, and the state economy overall is in good shape. Some of the iconic markets, though, continue to lag.
Byron Bay was one of the nation’s most spectacular growth markets during the Covid boom, but it has declined sharply more recently and is not yet showing signs of recovery. The Central Coast has shown hints of revival, but remains sluggish, as do Port Macquarie, the Blue Mountains and the South Coast.
Markets that have regenerated in the past six months or so include Wollongong, Newcastle,Orange, Coffs Harbour, Ballina, Albury and Goulburn. Overall, NSW is being out-performed by other regional jurisdictions, including Queensland, Western Australia and South Australia.
Top 10 Rising Stars
- Charlestown
- Dapto
- Coffs Harbour
- East Gosford
- Heddon Greta
- New Lambton
- Nowra
- Shell Cove
- Tweed Heads West
- Woonona
Charlestown
Charlestown is the largest town in the Lake Macquarie region. Located on the edge of Newcastle, it has a range of amenities, including Charlestown Square (the largest shopping centre in the Hunter region), Lake Macquarie Private Hospital and major nature reserves. It’s a popular location for property buyers, with around 250 home sales in the past12 months, and houses selling typically in four weeks. Vacancies are a low 0.6%.
Dapto
Wollongong has been the strongest market in Regional NSW in the past year and Dapto is one of the suburbs continuing to attract rising buyer demand. On the western side of Lake Illawarra, Dapto has good access to both the Princes Motorway (M1) and the Princes Highway that link to central Wollongong. Houses are selling quickly, with prices in the $700,000s. Rental vacancies are tight at 0.6%.
Coffs Harbour
This popular city on the north coast of NSW continues to attract lifestyle buyers and investors, with over 500 dwelling sales in the past 12 months. Coffs Harbour is very much about lifestyle; with renowned beaches, the Solitary Islands Marine Park and the Muttonbird Island Nature Reserve among its attractions. Its ongoing popularity is demonstrated by the long-term growth averages of 9% per year for houses and slightly less for apartments.
East Gosford
The Central Coast market has thrived recently, with Sydney residents escaping the big city congestion and expenses and heading to the key hub of Gosford. Its neighbour, East Gosford, is attracting buyers; with homes selling quickly and vacancies low at 0.5%. Frontage to water is a key part of the appeal, as well as the infrastructure of the Gosford region, which includes Gosford Hospital.
Heddon Greta
The Hunter Region provides a series of solid property markets, underpinned by a strong and diverse economy, as well as myriad lifestyle attractions. Heddon Greta is part of the Cessnock Local Government Authority (LGA), and is connected to Newcastle by the M15. It provides an affordable alternative to the increasingly expensive Newcastle property market. Houses are selling quickly here and the 10% per year capital growth rate is testimony to the area’s ongoing popularity.
New Lambton
This popular and increasingly expensive suburb is about 6 km from theNewcastle CBD. It has two major shopping districts, a number of schools, a regional sports centre and proximity to major green spaces.. Typical houses now cost over $1 million, but apartments are more affordable in the $600,000s. Vacancies are just 0.6%.
Nowra
This town of over 20,000 is the key commercial centre of the Shoalhaven region. Close to Wollongong, it is surrounded by farming communities and state forests. It’s also increasingly sought-after as a retirement and leisure area for residents of Canberra and Sydney. The naval air station HMAS Albatross is also located here. The local housing market offers affordability and a solid capital growth record, with rental vacancies below 1%.
Tweed Heads West
Tweed Heads is part of Regional NSW but also an extension of the Gold Coast. With easy access to Gold Coast Airport, Tweed Heads West has lots of water frontages and provides a more affordable alternative to Tweed Heads itself. Both houses and apartments have rates around 10% per year, with units dominating the dwelling mix.
Woonona
This beachside suburb in the north of Wollongong, serviced by the South Coast train line and the Princes Highway, has a capital growth average of 9% per year. Houses are expensive (median price above $1.3 million) and apartments are becoming increasingly popular (median price $765,000). Rents are high, with a vacancy rate close to zero.
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The 10 best suburbs in Regional New South Wales to invest in
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| Suburb | Median price |
1-yr growth |
10-yr average annual growth (%pa) |
Vacancy rate |
Median rental yield |
Initial Outlay (no concessions) on 20% deposit |
Monthly repayments |
|---|---|---|---|---|---|---|---|
| Charlestown, Lake Macquarie |
$880,000 | -7.0% | 7.2% | 0.6% | 3.7% | $210,666 | $4,450 |
| Dapto, Wollongong |
$740,000 | -5.1% | 5.4% | 0.6% | 4.2% | $176,366 | $3,742 |
| Coffs Harbour | $760,000 | -4.6% | 9.3% | 0.9% | 4.4% | $181, 266 | $3,843 |
| Coffs Harbour (Units) |
$525,000 | -4.5% | 8.8% | 0.9% | 4.8% | $123,691 | $2,655 |
| East Gosford | $960,000 | -12.7% | 5.1% | 0.5% | 3.5% | $230,266 | $4,854 |
| East Gosford (Units) |
$700,000 | -6.0% | 3.7% | 0.5% | 4.1% | $166,096 | $3,540 |
| Heddon Greta, Cessnock |
$694,000 | -2.1% | 9.9% | 1.0% | 4.2% | $165,096 | $3,509 |
| New Lambton, Newcastle |
$1,020,000 | -1.6% | 7.5% | 0.6% | 3.3% | $244, 966 | $5,158 |
| Nowra, Shoalhaven |
$655,000 | -2.2% | 6.9% | 0.9% | 4.3% | $155,541 | $3,312 |
| Shell Cove, Shellharbour |
$1,250,000 | -7.4% | 6.7% | 0.8% | 3.3% | $302,136 | $6,321 |
| Tweed Heads West | $855,000 | 0.0% | 9.5% | 0.8% | 4.5% | $204,541 | $4,323 |
| Tweed Heads West (Units) |
$485,000 | 7.7% | 10.8% | 0.8% | 5.6% | $204,541 | $2,452 |
| Woonona, Wollongong |
$1,380,000 | -3.5% | 8.9% | 0.2% | 3.1% | $335,286 | $6,978 |
Source: www.canstar.com.au. Prepared on 22/01/2024. Based on a selection of suburbs’ median prices, growth and rent figures provided by Hotspotting by Ryder. Initial outlay figures include the deposit, stamp duty, mortgage registration and transfer fees; and lenders’ mortgage insurance (LMI) premium for the 10% deposit scenarios. Stamp duty calculated based on an owner occupier purchase of an established dwelling. LMI premium based on Helia LMI Premium Calculator for an owner occupier borrower and a loan term of 30 years. Monthly repayments calculated based on the average variable interest rates of 6.5% (20% deposit) and 6.8% (10% deposit) and a loan term of 30 years. Interest rates based on the average owner occupier, principal and interest variable rate for a loan of $600,000 over the past year, rounded to the nearest 0.1%. Percentage of income based on the average total income by Greater Capital City Statistical Area (ABS Personal Income, 2020-21), adjusted by the ABS Wage Price Index (Sep-2023) for each state.
Cover image source: Taras Vyshnya/Shutterstock.com
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