Armidale, Dubbo and Glen Innes are on a housing boom trajectory for 2023

Canstar's annual Rising Stars: Australian Property Market Report 2023 has Armidale, Dubbo and Glen Innes in the top three of ten listed across regional NSW, with coastal towns such as Blue Haven, Gwandalan and Toukley not even making a mention this year.

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The report looked at price growth, sales volumes, vacancy rates and rental growth, plus infrastructure spending and amenities, to identify 110 potential property locations for investment across 14 capital cities, regional state or territory areas.

With a median house price of $450,000, a rental vacancy rate of 0.5 per cent and rising investment in the New England Renewable Energy Zone REZ, Armidale has experts predicting the town is headed for boom time.

Neil Mortimer from locally-based First National said lifestyles are becoming too expensive and crowded along the coast so it makes sense people are turning their attentions inland.

The elegant tree-lined regional city of Armidale is home to the University of New England UNE, Armidale Regional Airport, heritage-listed buildings and parks and is surrounded by mountain gorges, forests and waterfalls amid traditional old-world pastoralism.

Ben Saxby from Professionals of Armidale said $450k could get a home buyer a three-bedroom house with one or two bathrooms in a good location.

"We're one of the regional cities that's still very affordable for investors to get into the market," Mr Saxby said.

"We've got a thriving rural sector, and you've only got to drive five minutes out of Armidale to know we've got some of the best farming and grazing country in Australia.

"So, the rural sector is absolutely booming at the moment and I don't see that slowing down anytime soon.

"We've also got some of the best schooling in tertiary education. There's also good opportunity for jobs as we've got all these new renewable energy projects on the way."

The NSW government officially announced a section of New England as a Renewable Energy Zone REZ this year, where public transmission lines will be built to attract investment in renewable energy such as solar, wind and hydro plants.

Though the New England REZ is expected to boost the local economy by about $10.7 billion in private investments and add 830 operational and 1250 construction jobs each year, locals living near some planned renewable energy projects have been vocal about the lack of community engagement.

Though Armidale has a relatively small population size of about 25,000, it was technically coined a cathedral "city" in 1885, being home to the Anglican and Roman Catholic bishops of Armidale.

Nearby Glen Innes, sitting at spot three, is also expected to reap the economic benefits from renewable energy projects and infrastructure development in the region.

There in the charming inland town of about 8,000 people, bargain hunters can still expect to drop an average of $280,000 in a rental market boasting vacancy rates of just one per cent according to the report.

Like Armidale, Glen Innes is situated approximately halfway between Sydney and Brisbane along the New England Highway, with many boutique stores, community clubs, hubs, local pubs, and is ideal for families.

Jaci Francis from Glen Innes-based LJ Hooker said $280,000 would be enough for a small weatherboard house perfect for renovating.

But for those looking for a decent three- or four-bedroom brick house with one or two bathrooms, she said the price would realistically be about $350k to $380k.

Dubbo returns to the third spot for the second year in a row with a steadily growing median house value rising from $400,000 in last year's report to $495k this year.

Rental vacancy rates are at a low of 0.7pc being driven by job creation in areas such as healthcare, social assistance, and construction.

Goulburn, Leeton, Muswellbrook, North Tamworth, Parkes, Raymond Terrace and Tolland took out the bottom seven spots in the top 10 listed across regional NSW.

No longer buoyed by affordable rising house prices in coastal areas, regional NSW slipped from top spot in the nationwide category to seventh, with Adelaide placing first followed by Brisbane and Perth.

Canstar linked up with Hotspotting founder Terry Ryder who used forward-looking indicators to determine what the property market would look like across the eight capital cities and six regional state or territory areas in the year ahead.

Although not on the list, Mr Ryder noted the heat had evaporated in coastal housing markets, particularly Byron Bay where property prices have more than doubled in three years.

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