In a previous video, I discussed the possibility of homebuyers transitioning away from cities towards regional areas. Just a week later, there are reports of that exact behaviour occurring.
The Australian Financial Review wrote a case study about the Younger family who moved from Cammeray, which is 5 kilometres from Sydney’s CBD, to Ballarat, a rural city 100 kilometres north-west of Melbourne.
The reason behind their move? Working from home made a short commute less important, so they moved to a cheaper area where their money goes further. In Cammeray, $900,000 gets you a two bedroom apartment. In Ballarat, that money gets you a two-storey, three-bedroom house with a yard in an exclusive suburb next to the Ballarat CBD.
Cate Bakos, an independent buyers advocate and property investment advisor, says that interest in regional cities around Melbourne and Sydney is rising in response to the pandemic. Of particular note are Bendigo, Ballarat, and Newcastle, all of which have excellent infrastructure and a reasonable commute to their respective capitals.
This trend is still in its early days, but for those of us with skin in the property game, it’s absolutely worth keeping our eyes on it. These regional cities could be the next hotspots.