Mackay on list of Australia's next big country boom towns

New property outlook reveals regional areas that are booming

Then there is affordability - most regional towns are far cheaper than our capital cities. Picture: Joshua Withers

THERE is a lot to like about 'regional' Australia right now. Smaller towns have great communities and if you work in town, your commute can often be far less than in a big city.

Then there is affordability - most regional towns are far cheaper than our capital cities.

But affordability alone isn't enough to drive people to regional areas. They also need jobs, and the areas that are seeing the most demand on realestate.com.au are either within commuting distance of a capital city, or have economic growth driving employment.

The latest realestate.com.au Property Outlook report reveals the regions seeing the greatest increases in demand. With greater demand, comes price growth and these areas will see some of the largest increases in prices for regional Australia in 2018.

Below are four regional towns to watch:

Ballarat, Victoria

Ballarat was the regional town that saw the biggest jump in demand over the past 12 months, with year-on-year demand up by 62.1%. The commute to Melbourne may still be over an hour, but it seems to be quick enough to entice buyers. Prices are also a factor, with the median house price for Ballarat ($329,000) around half that of Melbourne.

While Ballarat is seeing high demand, not all suburbs are experiencing the same conditions. The inner suburbs, particularly Soldiers Hill, Newington and Ballarat East are seeing the most buyer activity. Given the larger type of housing in these areas, it is likely first home buyers and young families out of Melbourne are driving the market.

Orange, New South Wales

Prices in Orange are already surging ahead, however it looks like there is more to come. Demand on realestate.com.au is now up almost 40% in the last year alone. When you consider that demand in Sydney is down over 20%, you can see how different market conditions are in this regional centre.

Located over 250km west of Sydney, Orange is not within commuting distance of the CBD so it looks like local jobs growth, combined with far more affordable housing (the median house price here is $380,000), is a key driver in its growth. Health, education, tourism, agriculture and mining are all key contributors to the economy.

Mackay, Queensland

Located nearly 1000km north of Brisbane, tropical Mackay's economy is driven by sugar and mining. Over the past 12 months, prices have risen by 10% and with demand levels still increasing, this is likely to continue. Jobs growth is a key driver, with the unemployment rate now at its lowest level since 2014. Government investment is also continuing to grow the economy with a number of key beneficiaries including the sugar cane industry and manufacturing.

While its tourism industry is smaller than some of its neighbouring cities and towns, Mackay is a jumping off point to the Great Barrier Reef and Whitsunday Islands, and the number of domestic and international tourists visiting Mackay is growing. Demand for property is growing too, with year-on-year demand up 31.5%.

The median price here is $330,000, while the suburbs seeing the strongest demand at present are Glenella, West Mackay and Mount Pleasant. We can expect these suburbs to outperform the market in 2018.

Launceston, Tasmania

Hobart has been running red hot for some time now and now it looks like Launceston is on the move. Prices have increased by 18.9% over the past 12 months and buyer demand is up an incredible 37.1%. Like Hobart, it is likely that growth is being driven by low levels of new housing supply as well as jobs growth in the area.

The suburbs doing best in terms of demand are Invermay, West Launceston and East Launceston, and the median price is $315,000.

Originally published as Mackay on list of Australia's next big country boom towns