Property market performance in five regional areas will experience a boost due to the flow-on effects of Australia’s renewable energy boom, according to InvestorKit’s latest white paper.
“All three levels of government have committed to short- and long-term carbon emissions reduction targets which will see greater investment into renewable energy,” said Arjun Paliwal, head of research and founder of InvestorKit. “As more projects and zones are created in regional Australia, communities will see the benefits through new opportunities created for their local economies.
“Each renewable energy project creates hundreds, and even thousands, of jobs, particularly in its construction phase,” Paliwal said. “This will see increased demand for housing in regional areas, a revitalisation of regional surrounding towns as new ‘locals’ bring money to hospitality and retail businesses, and an overall strengthening of its property market. Those looking to buy in areas where the renewable energy boom is earmarked to take place can see property prices rise and benefit from long-term capital growth.”
Here are the five regions that will benefit from the renewable energy boom, according to the property data expert and buyers’ agent:
Toowoomba, Qld. A central hub in the Southern Queensland Renewable Energy Zone, Toowoomba is surrounded by $30 billion worth of in-progress and potential renewable energy projects, which will create thousands of new jobs.
The median house price in the region remains affordable at $490,000 and has been growing steadily in the past two years. The number of rental listings, meanwhile, has been declining – resulting in an extremely low vacancy rate and strong rise in rental prices in the last year. Rents are also expected to continue to rise.
Rockhampton, Qld. One of the major cities in the Central Queensland Renewable Energy Zone, along with Gladstone and Bundaberg, Rockhampton has 67 registered interest projects, representing more than $39 billion in renewable energy investment and thousands of construction jobs.
“While construction jobs only create short-term benefits, renewable energy projects can boost the economy in the long term by strengthening sectors such as energy-intensive mineral processing, low emission manufacturing, agricultural equipment manufacturing and more,” Paliwal said.
The Rockhampton property market has been growing steadily over the past two years, with the median house price sitting at $375,000 and with further room to grow. Its rental market, however, is extremely tight, leading to consecutive rises in rental prices over the past two years.
Tamworth-Armidale, NSW. Part of the New England Renewable Energy Zone, Tamworth and Armidale are among the best potential sites for pumped-hydro development and have high-quality solar and wind power resources. The region is expected to deliver up to $10.07 billion in private sector investment and support over 830 operational jobs and 1,250 construction jobs.
With healthy levels of unemployment rate between 3.8-5.7% over the past 12 months and an increasing number of job ads since 2020, Arjun expects the local job market and economy will go from strength to strength as construction on renewable energy projects commence.
Dubbo, NSW. Located in the centre of NSW’s Central-West Orana Renewable Energy Zone, Dubbo has a renewable energy investment valued at $5 billion. Not only does the region have an enormous potential for solar and wind farm developments, its proximity to Sydney makes it an attractive area for investment. It is also expected to support just under 4,000 construction jobs at its peak.
Dubbo’s property market has been growing since late 2021, with the median house price now at $420,000. Sale days on market have continued to decline for over a year, indicating Dubbo has high market pressure. Rental vacancy rates remain at extremely low levels and have led to a strong rise in prices over the past 15 months. Prices are expected to continue rising.
Latrobe Valley, Vic. Set to become one of the six Renewable Energy Zones in Victoria, Latrobe Valley has existing power plant sites and transmission networks and an exceptional wind resource along the coastline that makes it an ideal area to be transformed into a renewable energy hub.
Latrobe Valley’s housing market has been growing steadily over the past two years, and its median house price is around $393,000. Interestingly, its rental listings are higher than the same time last year, but it remains at extremely low vacancy rates. The high market pressure has led to rental prices jumping consecutively over the past two years.
