December 2024 NSW's top region suburbs

Varun Keerthy
Dec 10, 2024
4 min read

Updated: Dec 16, 2024

December 2024: Top NSW Suburbs for Investment - Growth Potential and Economic Factors 📊

In this episode, we dive into the growth potential of specific regions in New South Wales (NSW) and the economic factors that make them attractive for investors. With a focus on regional NSW suburbs, we explore the lesser-known but high-potential areas that are drawing attention from savvy investors. Whether you're a first-time investor or looking to expand your portfolio, understanding the dynamics of these regions will help you make informed decisions.

Understanding the Shifting Market 🔄

For this December episode, we’ve shifted our focus to lesser-known suburbs across several key regions in NSW. These aren’t your typical metropolitan hubs or satellite towns you might have heard of. Our selections are based on a data-driven approach, which means understanding the key economic indicators, market dynamics, and potential risks of investing in these areas.

Our discussion covers various regions in NSW, from the Hunter and Tamworth regions to the border between NSW and Victoria and the NSW-Queensland border. Each area comes with its own unique opportunities and risks. So let’s take a closer look at the factors that make these suburbs worthy of consideration.

Hunter Region: Muswellbrook - A Long-Term Investment Opportunity 🌱

In the Hunter region, we focus on Muswellbrook, a suburb in the $500k to $600k median price range. Unlike the more expensive areas like Maitland (currently priced above $650k), Muswellbrook offers a relatively affordable entry point while still benefiting from the growth of the Newcastle region.

Here are some key points:

Rental yield is strong, with an above 4.7% return—an attractive figure for investors.
Recent growth has seen a 51-60% price increase over the last 36 months.
The Muswellbrook bypass and a new hydro facility are expected to bring long-term growth to the area.
The suburb is supported by good local amenities and educational institutions.

However, while growth has been strong, it’s important to recognize that Muswellbrook isn’t experiencing the high growth rates typical of more sought-after areas. Newcastle might be a better investment if you’re looking for higher growth over the short to medium term. Muswellbrook presents a solid opportunity for long-term, stable growth, making it ideal for investors with a more patient, long-term strategy.

Tamworth Region: Oxley Vale - A Booming Market, But Beware of Slower Growth 📈

Tamworth, known for its booming manufacturing, retail, and hospitality sectors, has seen significant growth in recent years, with Oxley Vale standing out due to a 60% price increase over the last 36 months. However, the high growth rate might slow down in the coming years, so here's what you need to consider:

Healthcare industry continues to thrive, providing jobs in various sectors and boosting the local economy.
44% rental population means landlords have limited influence on rental pricing.
Despite the potential for continued growth, the price appreciation could stabilize at more modest levels compared to other areas in NSW.

Oxley Vale presents a good investment option for those looking for a relatively stable, long-term rental yield, but with slower growth than areas like Muswellbrook or Newcastle. If you’re in it for the medium-term, this could be a promising option.

Quirindi: A Developing Suburb with Long-Term Potential 🏡

Just outside Tamworth, Quirindi offers a unique opportunity for investors looking for a high rental yield in a developing area. Though the median price is around $360k, the market has only seen a 44% increase over the past few years. What makes Quirindi interesting is its buffer against price fluctuations, making it a solid option for long-term growth.

Fertile agricultural land is driving the local economy, with grain production and livestock creating a strong foundation.
Ongoing infrastructure projects, like an aquatic center and water treatment facility, are boosting the local economy.
Rural charm meets urban development, providing the best of both worlds.

Though it’s far from major centers, Quirindi benefits from the spillover growth from Tamworth and its proximity to the thriving agricultural and trade sectors.

Border Towns: West Albury and Lavington - Stability and Growing Potential 🌍

We move on to the border towns of NSW and Victoria, specifically West Albury and Lavington, which have seen moderate growth over the last few years:

West Albury has seen 20-30% growth in the past 36 months but has higher rental yields (4.43%) than many other areas.
Lavington, a neighboring suburb, shows potential for growth with a 4.87% rental yield and 10% growth over the last 36 months.

With key infrastructure projects in place, West Albury and Lavington benefit from agriculture and manufacturing, ensuring economic stability and steady growth.

Grafton and South Grafton - Bordering NSW and Queensland 🌊

Finally, we look at Grafton and South Grafton, two suburbs near the NSW-Queensland border, with a median price of $421k and 31% growth over the past three years:

Strong economies supported by manufacturing, agriculture, and tourism.
Potential flood risk, so it’s crucial for investors to conduct thorough due diligence on flood assessments.
Great rental yields and increasing demand due to economic development in the region.

Grafton and South Grafton are growing fast, but flood risk is an important factor to consider when making your investment decision.

Making the Right Investment Decisions ✅

As we wrap up this December 2024 analysis of the top-performing suburbs in NSW, we want to highlight that each region offers unique opportunities. From the growth potential of Muswellbrook and Oxley Vale to the stability and rental yields in West Albury, Lavington, and Grafton, there are great options for investors looking to build long-term wealth.

Key Takeaways:

📊 Hunter Region: Muswellbrook—stable, long-term growth potential.
📈 Tamworth Region: Oxley Vale—moderate growth with strong local economy.
🏡 Quirindi: High rental yield in a developing area with agricultural backbone.
🌍 Border Towns: West Albury and Lavington—stable growth, good rental yields.
🌊 Grafton and South Grafton: Growth with flood risk considerations.

Final Thoughts:

Each of these areas provides valuable investment opportunities in regional NSW for those willing to do their due diligence and understand the local economic dynamics. If you're ready to explore investment options in these high-potential regions, Future Secure Advisory is here to help you make informed decisions and secure the best property deals.