With global share markets reacting to unpredictable geopolitical shifts, including the imposition of US tariffs, Australian investors and SMSF holders are turning to property as a safer, more stable alternative.

According to leading real estate group Raine & Horne, renewed buyer interest in regional hubs like Toowoomba, smaller capitals such as Hobart, and even fringe suburbs of the major cities point to a clear resurgence in investor confidence in bricks-and-mortar assets.

“Regardless of global events, one thing is clear – share market volatility has become the new normal,” said Maria Milillo, Head of Property Management at Raine & Horne.

“For investors who value peace of mind, markets such as emerging regional hubs such as Toowoomba and the smaller capital cities such as Hobart and Darwin offer growth prospects, solid returns, and excellent affordability.”

Strong yields and economic stability make Toowoomba a hotspot for savvy interstate investors

In Queensland’s Darling Downs region, the property market in the regional hub of Toowoomba has defied pre-election jitters and global economic uncertainty, attracting strong interest from local, Brisbane, and Sydney investors—particularly in the $500,000 to $750,000 price range.

Chris Shine, Principal of Raine & Horne Toowoomba, said the region is known for its stability and long-term appeal, regardless of broader economic conditions and geopolitical issues.

“The market is starting to pick up, with savvy investors looking to get in early before any interest rate cuts send values north,” Mr Shine said.

“The sweet spot for investors is between $500,000 and $750,000, where you can find the best apartments and affordable three-bedroom homes offering gross rental yields of around 5%—which is very competitive compared to returns in Sydney and Brisbane.”

According to Mr Shine, Toowoomba’s robust rental market is underpinned by a diversified local economy. The Toowoomba Region’s Gross Regional Product is estimated at $14.76 billion —accounting for 3.17% of Queensland’s total economic output[i].

“Traditionally known for agriculture, Toowoomba has successfully evolved into a modern economic hub with strength in the health, education, construction, manufacturing and defence sectors.

Health Care and Social Assistance is now the city’s largest employer, supporting more than 17,500 jobs[ii].

Mr Shine added, “As a key retail hub for the Darling Downs region, it’s no surprise the sector is a major growth area, employing nearly 10% of the local population.

“Investors are recognising Toowoomba’s transformation into a region with real economic depth and employment opportunities for tenants, which is translating into consistent rental demand and long-term property growth,” Mr Shine added.

“People are drawn to Toowoomba for its strong job prospects, relaxed regional lifestyle, and wide open spaces.”

To illustrate current market dynamics, Raine & Horne Toowoomba recently sold a well-presented two-bedroom villa at 1/22 Gostwyck Street, Newtown, for $485,000, with an expected weekly rental return of $460.

“This investment attracted multiple offers from local, Brisbane and Sydney investors. A Sydney buyer using the services of a buyer’s agent eventually secured the property,” Mr Shine said.

Fringe Melbourne suburbs attracting attention

Randolph Clements, Managing Director of Raine & Horne Victoria, says recent share market volatility triggered by US tariff concerns is prompting investors to seek refuge in bricks and mortar, particularly in Melbourne’s more affordable fringe suburbs.

“Land tax remains a consideration for some, but history shows that when the equity markets take a hit, investors often shift their focus to real estate,” Mr Clements said.

“The RBA’s rate cut in February—and the strong possibility of further cuts starting in May—is also supporting this renewed interest in property.”

While Mr Clements anticipates a strong rebound in Melbourne’s commercial property market in 2025, he believes residential opportunities lie in fringe suburbs that offer affordability with strong rental yields.

“Suburbs such as Cranbourne, Clyde, Narre Warren, Berwick, Pakenham and Sunbury continue to attract investors, with Sunbury offering excellent value given its proximity to both the CBD and Melbourne Airport,” he said.

“Caroline Springs also remains appealing to investors with homes still available under $1 million, as do growth areas such as Williams Landing and Tarneit.”

Hobart records one of Australia’s strongest monthly value gains

In Hobart, new figures from CoreLogic reveal a monthly increase in property values of 0.9% in April —outpaced only by Darwin (1.1%). It’s a welcome shift for Australia’s southernmost capital, which has spent years at the lower end of the national growth charts.

Despite recent fluctuations, Hobart remains one of the country’s most affordable capitals, with a median home value of $664,462—second only to Darwin ($526,410).

Matt Carne, Principal of Raine & Horne Eastern Shore, said Hobart continues to offer solid, reliable returns for property investors.

“Hobart’s real estate market has traditionally been a safe bet, delivering steady long-term gains including gross yields 4.4% that is only bettered by those in Darwin among the capital cities,” he said.

“While we’ve experienced some market corrections and price spikes over the years, Greater Hobart has remained relatively stable overall.

“There’s a fair bit of stock available at the moment, but we’re now seeing stronger sales volumes and stabilising prices across the market.”

[i] https://economy.id.com.au/toowoomba

[ii] https://economy.id.com.au/toowoomba/employment-by-industry