Australia’s renewable industry is gaining traction and many investors are looking to take advantage of current and upcoming infrastructure projects as they strategize for their next purchase — so which regions are set to benefit from the boom?
InvestorKit founder Arjun Paliwal said governments have committed to short- and long-term carbon emission reduction targets, which drove the surge in investment into renewable energy.
“As more projects and zones are created in regional Australia, communities will see the benefits through new opportunities created for their local economies,” he said.
Mr Paliwal said every renewable energy project creates jobs and boost the local economy, which are crucial factors when looking at areas to invest in.
“This will see increased demand for housing in regional areas, a revitalisation of regional surrounding towns as new ‘locals’ bring money to hospitality and retail businesses, and an overall strengthening of its property market,” he said.
“Those looking to buy in areas where the renewable energy boom is earmarked to take place can see property prices rise and benefit from long-term capital growth.”
A recent study from MCG Quantity Surveyors found that eco-friendly and renewable energy upgrades in properties are able to provide substantial boost in rents, and help investors minimise their tax burden.
Here are the five regions that are set to benefit the most from the renewable energy boom in Australia:
Toowoomba, Queensland
Toowoomba sits as part of the central hub in the Southern Queensland Renewable Energy Zone — it is surrounded by $30bn of in-progress and potential renewable energy projects.
Of all projects in Toowoomba, the following projects have the most substantial impacts:
- MacIntyre Wind Farm Precinct (under construction) – valued at $1.96bn; creating over 650 jobs.
- Bulli Creek Solar Farm (approved project) – valued at $1bn; set to create 300 jobs
- Big T Pumped Hydro Storage Project (proposed project) – valued at $980m
There are also 72 other registered interested projects in the area that could potentially create thousands of new jobs.
Mr Paliwal said property investors who are looking in the area can get a house at a median price of $490,000 — this price, however, has been growing steadily over the past two years.
“Meanwhile, the number of rental listings has been declining – resulting in an extremely low vacancy rate and strong rise in rental prices in the last year. It’s expected rents will also continue to rise,” he said.
Rockhampton, Queensland
Rockhampton is one of the major cities in the Central Queensland Renewable Energy Zone along with Gladstone and Bundaberg.
This area has around 67 registered interest projects, which represent more than $39bn in renewable energy investments and thousands of jobs.
Some of the significant projects that would benefit Rockhampton are the following:
- Central Queensland Power Project – valued at $6.7bn; set to create 4,500 construction and 550 operation jobs
- H2-Hub Gladstone – valued at $1.61bn; set to create under 700 new jobs.
- Clarke Creek Integrated Wind Project
“While construction jobs only create short-term benefits, renewable energy projects can boost the economy in the long term by strengthening sectors such as energy-intensive mineral processing, low emission manufacturing, agricultural equipment manufacturing and more,” Mr Paliwal said.
The median price of houses in Rockhampton is at $375,000. Its rental market continues to be tight, with rent prices growing steadily over the past two years.
Tamworth-Armidale, NSW
Tamworth-Armidale is part of the New England Renewable Energy Zone, which comprise the best potential sites for pumped-hydro development. The zone also has high-quality solar and wind power resources.
The following projects provide Tamworth-Armidale a boost:
- Oven Mountain Pumped Hydrgo Energy Storage Project – valued at $1.25bn; set to create over 600 construction and 30 operation jobs
- Thunderbolt Energy Hub – valued at $900m; set to produce over 600 jobs.
Labour conditions are among the main selling point of Tamworth-Armidale — its unemployment rate is between the healthy levels of 3.8% and 5.7% over the past 12 months while the number of job listings growing since 2020.
Dubbo, New South Wales
Nested at the Central-West Orana Renewable Energy Zone, Dubbo has renewable energy investment value at $5bn.
Mr Paliwal said aside from having an enormous potential for solar and wind farm developments, Dubbo’s proximity to Sydney and its viability for business and investment ventures make it an attractive site for property buyers and investors.
“Dubbo’s property market has been growing since late 2021: the median house price is $420,000 and sale days on market have continued to decline for over a year — indicating Dubbo has high market pressure,” he said.
“Rental vacancy rates remain at extremely low levels and have led to a strong rise in prices over the past 15 months. It is expected to continue rising.”
Latrobe Valley, Victoria
Latrobe Valley is part of the Gippsland region, which is planned to become of the six renewable energy zones in Victoria.
Latrobe Valley’s local economy was badly hit by the impacts of the shut down of traditional power stations in the region. However, the existing power plant sites and transmission network provides a potential for it to be transformed into a renewable energy hub. Latrobe Valley also possess potential for wind resource along its coastline.
These two projects are poised to create thousands of jobs and set Latrobe Valley up as a hotspot for property buyers:
- Star of South Offshore Wind Farm – valued at $8bn
- Gippsland Renewable Energy Park
Latrobe Valley provides an affordable entry point for investors and homebuyers, with its median house price currently sitting at $393,000.
In terms of rental markets, listings have increased compared to last year, but overall conditions remained tight as vacancy rates maintained their low levels. This led to rental price gains over the last two years.
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Photo Credits:
- Header: Quang Nguyen Vinh from Pexels
- Toowomba: Greg Spearritt on Unsplash
- Rockhampton: Tourism Australia on Canva
- Tamworth: Felix Andrews on Wikimedia Commons
- Dubbo: Tim Keegan on Wikimedia Commons
- Latrobe Valley: Marcus Wong on Wikimedia Commons
