Albury real estate is set to get a boost from Sydneysiders.
COVID-19 has accelerated a trend of Sydneysiders moving to regional NSW and the exodus from the big smoke is expected to drive up property values in key towns once the pandemic blows over.
The areas set for the biggest jump in prices included the Hunter Region, Albury, Mudgee, Orange and Goulburn, according to a study of population trends, real estate sales and infrastructure spending.
The Hotspotting.com.au research showed prices in these areas had been growing rapidly before NSW went into lockdown in March and many of the conditions that fuelled that growth still remained in place.
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This included a diversified and growing economy, improving amenities, lifestyle attractions and a lower cost of living relative to average wages.
These factors were attracting a steady flow of people from Sydney and other capitals and demand for housing was rising.
Hotspotting director Terry Ryder said the cheaper lifestyle, combined with good job opportunities, has been a particularly important factor in the current environment.
“There has been an exodus to affordable lifestyle locations but this was going on before the pandemic,” Mr Ryder said. “The difference now is more people have embraced work from home arrangements and employers are more open to allowing it so that exacerbated the trend that was already there.”
The Hunter Region was particularly well placed to have a strong rebound from the pandemic as it was close to Sydney and had a strong economy, Mr Ryder said.
This economy was based on a mix of agriculture, viticulture, mines and energy — none of which has taken a major hit from the pandemic.
Real estate values in Albury, on the Victorian border, were also in a strong position to rebound because of “good growth momentum pre-virus”, according to Hotspotting.
“It has an economy that’s been doing well because of the pandemic, not in spite of it,” Mr Ryder said.
Alex Carroll and Megan Cullen, with twins Oliver and Archer, 1, moved to Albury. Picture: Simon Dallinger
“Among its main job sectors are medical and aged care. Other big employers are supermarkets and the military … Albury is well-situated to handle the current circumstances well.”
Similar momentum was observed in Mudgee and Orange, more than 200km northwest of Sydney. Sales activity in the latter had been rising over the past year and the median house price increased 7 per cent in the year to May.
In Mudgee, the median price for houses and units increased 8 per cent over the same period. Both economies had “the right elements to succeed in difficult times”, Hotspotting noted.
Goulburn in the Southern Tablelands region was viewed as another standout market because it was a key growth point on the Sydney-Canberra corridor. Close to $120m was being spent on healthcare industry investment and about $2.5b was being spent on wind farms in the area.
Former Sydney resident Megan Cullen said the chance for a better lifestyle and a smaller mortgage made her move to Albury.
The Mudgee area is also getting a boost.
“The quality of housing you get, relative to what you earn, isn’t comparable to Sydney,” she said. “We live in a custom designed house and it’s on 1500sqm, which you’d struggle to get in Sydney.”
She learned much about the city through an Evocities campaign and realised moving to “the country” would not be a step back for her career.
“It’s been the opposite,” she said. “It’s easier to get into business and be successful here … I never felt like I lost anything by moving here but I gained a lot.”
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