5 regions to benefit from the renewable energy boom

• Toowoomba alone is expected to be home to over $30 billion of renewable projects
• House prices are still below $500K despite this investment
• There are numerous Renewable Energy Zones across the nation

With the renewable sector growing at a faster rate than ever, with a strong infrastructure pipeline, a property data expert has revealed five areas that are set to benefit from this energy boom.

Property market performances in these areas are set to benefit as people migrate for renewable energy project jobs, boosting demand for rental properties.

The top regions include Rockhampton, Toowoomba, Tamworth-Armidale, Dubbo and Latrobe Valley. Toowoomba itself is set to benefit from $30 billion of renewable investments across in-progress projects and expressions of interest.

With a median house price of $490,000, Toowoomba has properties below the median of all of the capital cities.

“All three levels of Government have committed to short- and long-term carbon emissions reduction targets which will see greater investment into renewable energy,” said Arjun Paliwal, Head of Research and Founder at InvestorKit.

“As more projects and zones are created in regional Australia, communities will see the benefits through new opportunities created for their local economies.

“Each renewable energy project creates hundreds, and even thousands, of jobs, particularly in its construction phase.

”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. 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.”

The news also comes as 10,000 new places open up for the Regional First Home Buyer  Scheme.

5 regions to benefit from the renewable energy boom

1. Toowoomba, Queensland
2. Rockhampton, Queensland
3. Tamworth-Armidale, New South Wales
4. Dubbo, New South Wales
5. Latrobe Valley, Victoria

Toowoomba, QLD

As mentioned before, there is a $30 billion pipeline in the Toomwwomba region, especially in Western Downs. Projects include MacIntyre Wind Farm Precinct, which is valued at $1.96 billion, creating a total of 650-pus jobs. Other projects include the $1 billion Bulli Creek Solar Farm, creating around 300 jobs, and the proposed $980 million Big T Pumped Hydro Storage Project.

“For those looking to invest in the region, the median house price remains affordable at $490,000 and has been growing steadily in the past two years. Meanwhile, the number of rental listings have 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,” said Mr Paliwal.

Rockhampton, QLD

Along with Bundaberg and Gladstone, Rockhampton is one of the major cities in the Central Queensland Renewable Energy Zone. There are 67 registered projects, representing $39 billion in renewable energy investment and thousands of construction jobs.

“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,” added Mr Paliwal.

The top project in the region includes the $6.7 billion Central Queensland Power Project. It is estimated to create 4,500 construction and 550 operational jobs.

The property market in Rockhampton has grown steadily recently, with the median house price at $375,000. The rental market remains extremely tight leading to strong rises in rental prices.

Tamworth-Armidale, NSW

Tamworth-Armidale, part of the New England Renewable Energy Zone, is home to the best sites for pumped-hydro development, wind power and solar resources.

The region is expected to deliver up to $10 billion in private sector investment, with 830 operational jobs and 1,250 construction jobs.

The top project is the proposed $1.25 billion Oven Mountain Pumped Hydro Energy Storage Project.

The unemployment rate in the area has been between 3.8 to 5.7% – healthy for a regional area – with job ads increasing since 2020.

“As construction on renewable energy projects commences, I expect the local job market and the economy will go from strength to strength,” said Mr Paliwal.

Dubbo, NSW

Home to the Central-West Orana Renewable Energy Zone, the first such declared zone in Australia, Dubbo’s current renewable energy investment is valued at $5 billion.

The relative proximity of Dubbo to Sydney has made it an attractive area to invest in. The area is set to support just under 4,000 construction jobs at its peak.

“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,” noted Mr Paliwal.

“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, VIC

A major hub of the Gippsland, Latrobe Valley is one of the six Renewable Energy Zones in Victoria. Although its economy has been hit significantly by the closure of traditional power stations, existing power plant sites and transmission network combined with its wind resource along the coastline makes it an ideal area to be transformed into a renewable energy hub.

There are two proposed billion-dollar projects that are set to create thousands of new jobs, including the $8 billion Star of the South Offshore Wind Farm and the Gippsland Renewable Energy Park. The former is expected to create at least 6,000 jobs.

“Latrobe Valley’s housing market has been growing steadily over the past two years, and its median house price is around $393,000,” said Mr Paliwal.

“Interestingly, its rental listings are higher than the same time last year, but it remains at extremely low vacancy rates. The high market pressure has led to rental prices jumping consecutively over the past two years.”

~~