Country Week (www.countryweek.com.au) is a major promotion intended to encourage Sydney dwellers to consider opportunities in regional NSW for work life and play.
One feature of Country Week 2004 was the interest in the real estate opportunities offered by regional NSW. Perhaps not surprising given that Sydney real estate is presently overpriced, offers low rental returns and an uncertain sales market.
For that reason, the Country Week 2005 seminar series held in conjunction with the Country Week Expo included a number of sessions focused on the opportunities offered by regional NSW real estate for both life style and investment. Speakers included Adam Sydenham Ray White Grafton (www.raywhitegrafton.com.au), Wendy Heagney Inverell First National (www.inverellfn.com.au), Peter Whalen Western Plains Real Estate Dubbo and Peter Hutchinson Hutchinson & Harlow Armidale (www.hhrealestate.com.au).
Key points included:
As with all real estate, you must take time to investigate the market. Just because something seems cheap by Sydney standards does not make it good value.
From 2001 and especially after 2003, Sydney investors discovered regional NSW real estate leading to a rapid increase in prices. Nevertheless, gross rental returns still average between 5 and 7 per cent, well above the rate that can be achieved in Sydney. Higher returns can be obtained with careful search.
There is a clear hierarchy in prices. With exceptions (some inland centres are growing very rapidly) average coastal prices are higher than inland prices. There is also a clear relationship between price and centre size. Notwithstanding this price heirarchy, average gross rental returns are remarkably constant across the state. That is, lower house prices equals lower rentals, but with the same average return.
Lower average real estate prices allow for better life style as measured by variety in types, average block size, average house price.
For a detailed analysis of real estate in one NSW regional area see the accompanying story on Armidale
