Albury, Tamworth and Sydney suburb Harris Park have topped a list of surprising NSW locations that property experts claim will outperform the rest of the market this year.
Other locations to watch in 2025, flagged by property market analyst Hotspotting, included Grafton, Parkes, Dubbo, Glen Innes, Leeton and Lithgow.
The research measured investment potential by affordability, housing demand and infrastructure development.
Hotspotting director Terry Ryder said the best buys for next year includes locations with plenty of long-term growth potential excluding spots that “are already hot and frenzied regional areas.”
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“[People] wait until they hear reports that a location is hot and decide they want a piece of the action, but by then it’s often too late,” he said. “Prices are already inflated and it is reaching the peak of its price growth.”
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The analysis evaluates regions nationwide for capital growth potential, considering infrastructure, employment, urban renewal, lifestyle, and migration factors.
“Those who followed the tips in our report a year ago could have made close to $100,000 in capital gains spending as little as $400,000,” Mr Ryder said.
Hotspotting general manager Tim Graham predicts a resurgence in certain markets that have been quiet for the past few years.
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“These ‘second-wind markets’ will reignite in 2025,” he said. “These are regions that experienced significant price growth from 2022 to 2024, took a breather, and are now gearing up for another round of growth.”
Mr Ryder said it was important to find places with strong fundamentals, such as high population growth forecasts, investments in infrastructure and markets for job creation.
“As a general comment, people should not overlook the potential of units and townhouses,” he said. “More and more people are opting for units, townhouses, apartments, and that should not be overlooked.”
Based on the Hotspotting analysis, these are the spots to invest in NSW.
ALBURY- WODONGA
The Albury-Wodonga region is a critical area for several major businesses, making it a prime market to grow in the future.
Being on the border of NSW and Victoria, the spot is within driving distance of both, while still being able to reach states such as Queensland.
“It’s got a wonderful location – lots of big businesses have major distribution centres there,” Mr Ryder said.
The area will also be connected to the $31 billion Inland Rail project under construction, connecting freight trains from Victoria to Queensland.
“That’s another factor in favour of Albury-Wodonga as an affordable city with great growth prospects,” Mr Ryder said.
Albury’s median house price is currently $865,000 while a unit is $450,500.
Tamworth
In housing, several suburbs are sometimes given the term ‘second-wind market’: areas that have previously shown strong growth, and are now preparing for a resurgence. Tamworth is a good example, with the market starting to rise again as more people flee the major cities.
“We’ve got people moving to the regions for an affordable lifestyle,” Mr Ryder said, adding NSW had the largest affordability crisis in the country.
Places like Tamworth have major investments such as Tamworth Global Gateway Park to grow their industry, along with energy developments worth over $10 billion.
“It’s an important regional city, it’s growing, it’s got a lot of infrastructure investment happening,” Mr Ryder said.
East Tamworth, with a median house price of $653,000, has had an annual average growth of 9 per cent per year over the past five years.
With investor yields at 4 per cent, Mr Ryder said the suburb was “an example of what Tamworth has to offer”.
Harris Park
For people looking for something closer to Sydney, Mr Ryder said people should not overlook Harris Park.
“A lot of people would turn their nose up at it, but people buy where they can afford in places with a lot of infrastructure,” he said.
While the median house price in the area is $1.393 million, the median unit price in Harris Park currently sits at $482,000. In the past 12 months, that median went up by around 11 per cent, with rents rising by 14 per cent during that same time.
“There are not many places in Sydney where you can buy places in the 400,000s,” Mr Ryder said.
The suburb also has strong economic potential, with the Parramatta Council planning to invest about $195 million in capital works during the 2025 financial year.
With additional reporting by Nicholas Finch.