Best NSW hotspots for lifestyle and investors

Those seeking an exodus from Sydney or a more affordable market for investing have been given a cheatsheet of the regional NSW areas offering the best and cheapest lifestyle alternatives to the Harbour City.

The research from national property group PRD revealed the areas with the most comparable standard of living to Sydney, coupled with affordable prices that were due to grow strongly in the coming years.

The markets offering the best balance of these attributes were identified as the Dubbo, Port Macquarie-Hastings and the Shoalhaven regions.

PRD chief economist Diaswati Mardiasmo added that these regional areas were not only more affordable than Sydney but showed strong investment fundamentals and had new housing projects breaking ground in 2025.

The Shoalhaven region has been listed as one of the best NSW areas to buy.

New infrastructure was being invested in these regions and they all had low unemployment rates, she added.

“We wanted to identify places with amenities and services so you can swap your Sydney life for a (cheaper) life and still have your cafes and shops available,” she said.

“It’s also for investors because in Sydney, the rental yield is only around 2.5 depending on where you are, whereas in these areas you’ve got that affordability aspect and the rental yield is 3.5-5.5 per cent,” she said. “The vacancy is also lower, so you’re definitely getting a better deal.”

The analysis comes as declining affordability continues to push city-dwellers to alternative markets.

PRD Chief Economist Dr Diaswati Mardiasmo.

With Sydney dwelling prices hitting a new peak of $1.1m in April, there has also been a rise in rentvesting as residents remain reluctant to give up their city lifestyle and are instead purchasing in alternate markets while renting in their desired area.

CEO of the Investors Agency Darren Venter said the lack of affordability in Sydney was the biggest reason many were turning to rentvesting.

“The reality is that if you can put your money into something that is not on your doorstep, a regional market is a really good opportunity,” he said.

Three bedroom home for sale in Dubbo priced between $745,000-$795,000.

Affordable markets with room for price growth paired and population movement were two aspects to watch, he added.

“As long as they continue to have population increases, these markets are going to stimulate the investor pockets,” he said. “If that allows a person to get into the property market to create equity to eventually use for a deposit, for many that’s the best opportunity for them to get their actual dream home inside a metropolitan market.”

Dubbo had the most affordable house prices at $532,000, while Port Macquarie-Hastings region’s median was $845,000 and Shoalhaven at $820,000.

“It’s for those who are looking for an alternative, thinking where can I actually be a property owner and have that lifestyle,” added Dr Mardiasmo.

Other alternative NSW regional markets after Dubbo, Port Macquarie and Shoalhaven.

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