10 Economic Powerhouses With Strong Real Estate Markets

InvestorKit’s Market Pressure Review Report reviewed the most recent data on each region’s gross regional product (GRP), industry diversity, population, unemployment rates and jobs, airport passenger movement, construction pipeline and real estate market trends such as sales market pressure, rental market pressure and affordability.

Despite the pandemic-induced challenges to the global economy, InvestorKit founder and chief research officer Arjun Paliwal highlighted Australia’s strong economic performance relative to other countries.

Describing the research methodology used to narrow down the list, he explained: “Our selection of 10 flagship cities across the country was based on a range of things to create a diverse list, not just the biggest local economies.

“We considered large and strong economies, some of the best performing economies that were previously weak, and relatively strong markets relative to their size.”

Mr Paliwal also noted that because local economies and real estate markets are so closely intertwined, stakeholders would likely find it interesting “to see the positive impact of flow with a lag and how that can help guide future decisions in the future.” ‘investment”.

The 10 economic hub cities with strong property markets in Australia are:

1. Greater Adelaide

According to Mr. Paliwal, the government’s massive investments in infrastructure, the region’s balanced industrial structure, which supports sustainable economic growth, and the sharp decline in the unemployment rate – which reflects a resilient economy – all contribute to the strong momentum. of Adelaide growth.

He added: “The number of visitors to Adelaide has increased over the past two decades. It won’t be long before we see Adelaide become one of Australia’s leading cities for innovation, lifestyle and tourism.

Economic and real estate market indicators

The figures

Unemployment rate down

5.5% in February 2022

Infrastructure projects on the rise

165 billion dollars of projects in progress

Gross Regional Product (GRP) gains momentum

$93.25 billion

Affordable housing market

Median price of $555,000

Mortgage rate

With an interest rate of 3.5%, mortgages are 35% less than the average local household could pay

Strong capital growth

Extremely high market pressure with declining sell volumes and sell days in the market

2. Greater Hobart

Mr Paliwal described Tasmania as ‘one of Australia’s best-performing regional hotspots’ with Hobart enjoying one of the strongest property booms in the country, indicating ‘a thriving local economy for years to come’ .

Economic and real estate market indicators

The figures

Unemployment rate down

4.4%

Infrastructure projects on the rise

$12.5 billion in ongoing projects

$1.4 billion planned spending on social infrastructure

Affordable housing market

Median price of $640,000

Low rental vacancy rate

Increase in rents over the past 15 months

3. Western Sydney

Western Sydney has been grouped by InvestorKit to include the suburbs of Penrith, Blacktown, Camden, Liverpool, FairfieldFairfield, NSW Fairfield, VIC Fairfield, QLD, Cumberland, Parramatta and the Hills Shire. According to Mr Paliwal, it has the potential to be one of Australia’s biggest and strongest economies.

“We’re seeing demographic shifts happening and new high-income jobs in the area to create a longer-term shift in affordability,” he said.

Economic and real estate market indicators

The figures

Population

nearly 2 million

Infrastructure projects on the rise

More than $108 billion in projects underway

Affordability crisis

Median price of $990,000

Mortgage rate

With an interest rate of 3.5%, mortgages are 26% higher than the average local household could pay

Capital growth

40-60% over the past two to three years

4. Villeville

InvestorKit described Townsville as “the leader of Australia’s recovery markets”, having overcome double-digit unemployment rates in 2016 and now competing with major cities with low rates of around 5%.

Mr Paliwal noted Townsville’s tight rental market, which he said “puts the area in a strong position for buyers”.

“In the coming decade, it will become a city of opportunity and prosperity as it emerges from its state of recovery,” he said.

Economic and real estate market indicators

The figures

Infrastructure projects on the rise

12 billion dollars of projects in progress

$18 billion in surrounding impact regions (port improvements, defense, large-scale energy projects)

Affordable real estate market

Median price of $370,000

5. Toowoomba

InvestorKit attributed Toowoomba’s long-term economic growth to a wide range of industries, with major employers including healthcare and social care, and education and training.

Economic and real estate market indicators

The figures

Unemployment Rate Falls, Job Openings Rise, Hit 10-Year High in 2021

3.9%

Gross Regional Product (GRP)

$11.63 billion

Affordable housing market

Median price of $445,000

6. Bendigo

InvestorKit highlighted Bendigo’s economic boom as different from other regions on the list because its major projects have already been completed and are moving forward and not just ongoing projects.

“In recent years, the construction and expansion of North Bendigo Hospital has been a key project for the region worth over $600 million, and now we see other notable projects like improvements to airport and GovHub and courthouses in the pipeline,” Paliwal noted.

Economic and real estate market indicators

The figures

Population

120,000

Unemployment rate drops, job vacancies increase

4.4%

Infrastructure projects on the rise

165 billion dollars of projects in progress

Gross Regional Product (GRP)

$6.11 billion

Affordable housing market

Median price of $510,575

7. Shepparton

Shepparton is a hub city, according to InvestorKit, as it produces 25% of Victoria’s rural output, while its population accounts for nearly 10% of the overall Victorian population, underscoring its importance to the region.

Hospital expansions, rail and road improvements and other multi-billion dollar projects are also underway. Shepparton, like the rest of Greater Victoria, experienced strong capital growth due to the pre-pandemic property boom.

Economic and real estate market indicators

The figures

Population

67,000 (10% of Victoria’s population)

Gross Regional Product (GRP)

$3.52 billion

Affordable housing market

Median price of $387,500

8. Geelong

InvestorKit recognized Geelong’s transformation from a regional city to a key hub for Greater Melbourne, making it the single largest contributor to Victoria’s regional economy.

Mr. Paliwal said projects such as business parks, railways, residential developments and infrastructure projects are major contributors to the city’s $15.33 billion GRP.

“Geelong has nearly $100 billion worth of business that directly or indirectly benefits the city. Its top five labor markets are also closely aligned with national numbers, in terms of diversity,” he said.

However, Mr Paliwal acknowledged that while these variables contributed to Geelong’s outstanding performance, he also flagged that due to the maturity of the housing market, it is possible that the local property market may have already peaked in terms of of capital growth, while their booms started long before the pandemic.

“We do, however, see his good housing conditions return in the years to come as all of this economic positivity trickles down,” he added.

9.Orange

Orange may not be as big as the other cities on this list in terms of production and projects, but InvestorKit chose to include Orange, seeing its potential as “a diverse city, a popular tourist spot and a where to live, and offering great confidence to locals for their jobs and wealth creation”.

It is also one of the best performing housing markets in Australia in recent years due to its strong local economy, vibrant business community and one of the lowest unemployment rates in the country at 2.5%.

Along with major agricultural credit banks and the government’s new regional investment company based in Orange, InvestorKit noted that it is fast becoming the NSW region’s agri-finance powerhouse.

10. Wagga Wagga

Wagga Wagga is a region that appeals to both cautious and aggressive investors, InvestorKit noted. Jobs in various industries such as health, education, agriculture, and retail are also commendable, which have recently increased, which InvestorKit has recognized as good conditions for local economic growth.

Economic and real estate market indicators

The figures

Population

Nearly 66,000

Low unemployment rate

2.5%

Infrastructure projects

$5.1 billion in direct LGAs

$12.5 billion in surrounding regions

Tight rental market

4 to 5% growth

RELATED TERMS

Goods

Property refers to something tangible or intangible over which an individual or business has legal rights or ownership, such as houses, cars, stocks, or bond certificates.

About the Author

Noemi Pamintuan-jara

Noemi is a journalist for Smart Property Investment and Real Estate Business. She has extensive experience writing for the business, health and education sectors. Noemi is a contributing author of a summary published by the American Public Health Association and Best Practices in Emergency Pedagogical Methods in Germany. She shares copyright ownership of an instructional video for pharmacists when communicating with deaf patients. She attended De La Salle University where she obtained a double degree in psychology and marketing… Read more

10 Economic Powerhouses With Strong Real Estate Markets




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Last update: April 13, 2022

Posted: April 14, 2022