Sydney property investors are increasingly turning their attention to regional markets, with fresh figures from Our Broker, Raine & Horne’s financial services division, showing enquiry levels have climbed by 20–30% year-on-year.

According to Craig Betalli, Senior Broker at Our Broker, recent interest rate cuts have prompted yield-hungry investors to rethink their strategies and target quality properties in regional NSW.

Cotality data shows Sydney’s median house price is $1.521 million, delivering gross investment yields of around 3%. By comparison, regional NSW has a median of $802,000 with average yields of 4.2%, which can be significantly higher in many centres.

“Lower borrowing costs have given investors more confidence, and many are asking how they can maximise the benefit of those cuts,” Mr Betalli said.

“Regional markets offer a compelling answer with investors able to get more bang for their buck while tapping into strong rental demand and higher yields.”

Mr Betalli noted that demand is particularly evident in centres such as Bathurst, Young, Lismore, Inverell and Casino, where affordability and lifestyle benefits combine with attractive yields.

“It’s not just experienced investors and self-managed super funds chasing these opportunities. We’re also seeing first-time investors who want to step into the market at an accessible price point. 

Investor demand is strong in Casino as supply remains tight

In the Northern Rivers region of NSW, investor demand is rising but supply remains constrained, according to Kate Morgan, Principal of Raine & Horne Casino.

“We’re fielding strong enquiries from investors, but the challenge is a lack of stock coming to market,” Ms Morgan said.

A recent example is the purchase of a spacious four-bedroom, two-bathroom house at 85 Dean Street, Casino[i], by a first-time investor. The property is expected to rent for around $600 a week once improvements are completed.

Ms Morgan says a typical three-bedroom rental property in Casino sells for about $500,000 and rents for between $480 and $500 per week, highlighting the town’s attractive 5% gross rental yields.

Ms Morgan added that investor demand is particularly strong for four-bedroom, two-bathroom homes, but listings remain scarce. “For owners considering selling, now is an ideal time to take advantage of high demand from investors and limited supply,” she said. 

From Tenterfield to Walcha, investors dominate New England property sales

Across the New England region of NSW, from Tenterfield through to Walcha, including towns such as Glen Innes, Armidale and Guyra, the vast majority of buyers are investors, confirmed Nellie Hayes, Principal of Raine & Horne Armidale/Glen Innes.

“Local owner-occupiers are few and far between, with many buyers coming from the capital cities. The consistent factor is that investors are chasing reliable yields,” Ms Hayes said.

On ROI expectations, Ms Hayes noted that investors can still secure 7% returns in parts of New England, making the region highly attractive compared to metropolitan investment markets. “For example, we recently sold a residential property in Inverell for around $480,000 that is returning $700 a week in rent — that’s over 7.5% ROI.”

In Glen Innes, Ms Hayes sold a charming three-bedroom, two-bathroom cottage set on an enormous 3,142 sqm block at 108 Grey Street, Glen Innes[ii] for just $370,000. With an expected rental return of $400 a week, the property offers a solid 5.6% gross yield.

According to Ms Hayes, the investor sweet spot tends to be in the $450,000–$500,000 range, where strong rental demand underpins attractive yields.

“We’ve recently sold several homes in Glen Innes and Armidale in this bracket, and enquiry levels are extremely healthy,” she said.

“Open homes, particularly in towns such as Guyra and Glen Innes, are dominated by investors. We’re seeing multiple offers, and properties are often being snapped up quickly. There’s a real sense of momentum driven by investors across the region.”

Investor demand returns to Bathurst as rate cuts lift confidence

Interest rate cuts are re-igniting investor appetite in Bathurst’s property market, according to Grant Maskill-Dowton, Director of Raine & Horne Bathurst.

“For much of this year, our sales were dominated by first-home buyers and owner-occupiers, and investors were largely absent,” Mr Maskill-Dowton said.

“Over a six-month stretch, I could probably count investor sales on one hand. But in the past two months, the tide has definitely turned.”

Mr Maskill-Dowton noted that open homes are now attracting serious yield-hungry buyers. “We’re getting far more questions about rent returns, vacancy rates, and cash flow. That wasn’t happening earlier in the year. It shows investors are back in the market and doing their homework.”

Raine & Horne Bathurst currently manages a large rent roll, with a vacancy rate sitting at an ultra-tight 0.05%.

“That low vacancy rate is fuelling investor confidence, along with our generous rental yields compared to capital cities. For example, a $700,000 property in Bathurst might rent for around $600 a week,” he said.

Units are also proving attractive. “Bathurst has many two-bedroom brick units from the late 80s and early 90s. They generally sell in the mid-$400,000s and rent for about $400 a week, which equates to close to a 5% yield,” Mr Maskill-Dowton explained.

One recent listing, 11/94 Havannah Street, South Bathurst, priced at $465,000 with an expected weekly rent of $420, demonstrates the value proposition for investors.

“Those investors we are seeing coming through our open homes are very serious. Some are locals, and we’re even fielding interest from Sydney buyers – a positive sign that Bathurst is firmly back on the radar,” Mr Maskill-Dowton added.