10 best suburbs in Regional Queensland to invest in 2021-22

TERRY RYDER
Find out which suburbs in Regional Queensland made the top 10 list in Canstar’s Rising Stars Australian Property Market Report powered by Hotspotting.

All roads don’t lead to Queensland, but for real estate consumers, a lot of them do. The population data shows that Queensland is the nation’s number one beneficiary of interstate migration by a considerable margin. In simple terms, lots of people are vacating Sydney and Melbourne and many of them are heading north.

Queensland scores points for control of the pandemic, an appealing climate, an enviable lifestyle and a good level of affordability. The state also ranks highly for investors.

With the population, climate, pandemic, lifestyle and affordability factors all working in its favour, regional Australia is full of property markets with strong potential for capital growth.

Half of the locations we have selected are in South East Queensland, which is the focus of so many growth pressures, but there are also good growth possibilities in other parts of Regional Queensland.

 

View of Rockhampton from Mount Archer
View of Rockhampton from Mount Archer. Image source: Alexander Jung/Shutterstock.com

The 10 best suburbs in Regional Queensland to invest in

  • Bundaberg East
  • Burleigh Waters (Gold Coast)
  • Centenary Heights (Toowoomba)
  • Dundowran Beach (Hervey Bay)
  • Gympie
  • Little Mountain (Sunshine Coast)
  • Newtown (Toowoomba)
  • Norman Gardens (Rockhampton)
  • Paradise Point (Gold Coast)
  • Southport (Gold Coast)


Sales activity in Southport, a suburb positively impacted by major infrastructure, has more than doubled in the past 12 months and the rate of price growth is accelerating. Very low vacancies also mean rents are rising strongly here.

The Broadwater suburb of Paradise Point is also attracting rising buyer demand and prices have taken off notably in the most recent quarter, with the median house price reaching $1,105,000.

The canal suburb of Burleigh Waters has also seen a price explosion recently, with its median approaching $1,000,000, thanks to rising buying demand, against a backdrop of very low vacancies and strongly rising rentals.

The Sunshine Coast has been one of the nation’s growth markets in the past two to three years and continues to attract strong buyer demand. Little Mountain (median price $665,000) is well-situated to benefit from new infrastructure, notably the multi-billion-dollar medical precinct and has very low vacancies and strongly rising rents. Sales activity is up and prices continue to rise.

A short drive up the motorway from the Sunshine Coast, the regional city of Gympie has been thriving based on its relative affordability and the upgrade to those motorway links. Sales levels have doubled in the past year and the rate of price growth is increasing. Vacancies are very low and rents are rising in Gympie.

There is rising interest in the important inland city of Toowoomba, where new transport infrastructure is lifting its economic importance. Sales activity in suburbs like Centenary Heights (median price $395,000) has doubled in the past year and prices are starting to respond, while low vacancies are causing rents to rise.

The suburb of Newtown is close to Toowoomba’s inner-city infrastructure and is attracting strong demand from tenants and buyers. The typical rental yield is 5.3% and a low vacancy rate. With a median house price of just $315,000, prices can only rise.

Hervey Bay is a natural beneficiary of the ‘Exodus to Affordable Lifestyle’ trend and sales activity has turned sharply upwards in 2021. Towards the upper end of this market, there is rising buyer demand in Dundowran Beach and prices are responding.

The Bundaberg region is also attracting lifestyle buyers seeking attractive prices. This area is attracting significant government investment, including a new $1.5 billion hospital, and the city has very low vacancies and rising rents. With sales activity taking off, there is inevitable pressure on prices in suburbs like Bundaberg East, where the median house price remains below $300,000, for now.

Further north, a big infrastructure spend is helping to generate revival in the Rockhampton market, where mainstream houses are still in the $200,000s. Low vacancies, rising rents and increasing demand from buyers seeking affordability complete an equation where prices must rise, including in more upmarket suburbs like Norman Gardens (median price $410,000).

The 10 best suburbs in Regional Queensland to invest in

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

Suburb Median house price 1-yr growth 10-yr average
annual growth (%pa)
Vacancy rate Median rental yield
Bundaberg East $290,000 19.8% 1.0% 0.4% 5.7%
Burleigh Waters
(Gold Coast)
$985,000 15.7% 6.3% 0.4% 3.6%
Centenary Heights
(Toowoomba)
$395,000 9.7% 2.9% 0.5% 4.9%
Dundowran Beach
(Hervey Bay)
$660,000 16.8% 3.3% 0.6% 3.7%
Gympie $325,000 19.8% 2.8% 0.3% 5.3%
Little Mountain
(Sunshine Coast)
$665,000 14.8% 3.9% 0.6% 4.3%
Newtown
(Toowoomba)
$315,000 4.5% 2.0% 0.5% 5.2%
Norman Gardens
(Rockhampton)
$410,000 7.9% -0.8% 0.4% 5.3%
Paradise Point
(Gold Coast)
$1,105,000 8.3% 3.0% 0.4% 2.4%
Southport
(Gold Coast)
$655,000 14.9% 4.0% 0.5% 3.8%

Sources: Median price, growth and rental yield: CoreLogic data sourced from yourinvestmentpropertymag.com.au dated 1 August 2021. Vacancy rates: SQM Research as at September 2021.

Cover image source: zstock/Shutterstock.com


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*