Researcher tips boom in 10 regional centres
October 26, 2009
A real estate researcher has outlined ten regional areas set to enjoy boomtime conditions in the coming years as the economy expands.
Real estate forecaster Terry Ryder, of property website www.hotspotting.com.au, believes resources and tourism will be two of the key drivers, while Orange in NSW and the north west of that state are set to flourish thanks to the agriculture and tourism sectors.
In his “National top 10 Boom Town Hotspots” report, he labels Bunbury (WA) and Newcastle (NSW) as among the leaders of property price growth for the next few years, with Ceduna in South Australia, Gladstone (QLD), Geraldton, Port Hedland and Karratha in WA and Portland in Victoria rounding out the list (along with Orange and north-west NSW).
Despite being keen on towns linked to the resources boom, Mr Ryder cautioned against buying into regions that were “pure mining towns”. Instead regional centres that would benefit from infrastructure projects at nearby mines could be the winners.
“While investors who get in early can make big capital gains, most mining towns exist in a bubble, which can burst if demand for resources drops, the local mine closes or housing demand falls away after construction of a major project is completed,” he explained in a statement. “Property buyers looking for boom town investments are better served looking for nearby regional centres that will enjoy the economic surge of major new projects, but are not solely dependent on it for their prosperity.”
Mr Ryder pointed to the desalination plant in Bunbury, a port upgrade in Ceduna, port and rail links in Geraldton, industry and tourism in Gladstone and port and rail links in Newcastle as major reasons behind their inclusion in the list.