Brisbane-based investment analysts Propertyology has ranked seven of the region’s local government areas (LGAs) inside the top 100 best-performed property markets in the 15 years since 2000.

Gunnedah and Liverpool Plains came in at equal 38th in the comprehensive analysis of all the 550 LGAs around the country, followed by Narrabri (49th), Glen Innes (70th), Moree (81st), Guyra and Inverell (equal 92nd).

The smaller LGAs clearly out-performed Tamworth (163rd) and Armidale (173rd) in the study, which graded each centre according to their combined average annual growth rate and average rental yield.

However, Propertyology managing director Simon Pressley said there were plenty of reasons to be positive about Tamworth and the result still placed it in the top 30 per cent of markets in the country. 

“Tamworth had the highest population growth rate in the region – 1.1 per cent per annum for the last 10 years, compared to the 1.6 per cent national average,” he said.

“Propertyology regards Tamworth as an exceptionally strong regional service centre, with an economy which is comparable to capital cities in regards to industry diversity.”

The mining boom of the early 2000s, and again at the start of the decade, has driven a dramatic change in Gunnedah’s housing market.

Since 2000, the median house price in Gunnedah has soared from $80,000 to $290,000 at an average annual growth rate of 9.6 per cent, together with a 5.8 per cent rental yield.

Mr Pressley said that in 2005 alone, house prices soared a staggering 34 per cent at the same time as the Sydney market was “as flat as a tack”.

“The coal industry in general was strong then,” he said. “Gunnedah definitely benefitted in 2004-06 from the broadly healthy Australian economy, but it got extra stimulus in the form of coal-related activity.”

Mike Brady, senior director of Gunnedah First National, is a third-generation real estate agent whose family has sold property in the district since 1937.

He said the closure of Gunnedah’s abattoirs and subsequent loss of jobs in the early 1990s caused a “softening in demand” before confidence returned at the turn of the century.

“I think that’s been reflected in very good infrastructure growth, because we’ve got a lot of money being spent on our schools and hospitals and with recent developments to transport systems including road, rail and local rail overpass initiatives,” he said.

“That’s in alignment with job-creating initiatives in the mining sector, as well as other related industries servicing the mines.”

Mr Brady said the town’s property market could surge again if Shenhua Watermark’s coal mine, which would create hundreds of jobs, goes ahead.

“I think we’re going to see in the next two to five years an exciting new period of development and expansion with regard to the Gunnedah property market,” he said.

“Shenhua are a significant player in the game now and while they have not started the mining and extraction phase yet, when that kicks in I think we’re going to see a lot more mining-related employment in the area.

“Existing coal mining operations in the region will be pivotal in providing confidence for employment and stability for the greater community.

“Agriculture will continue to be significant as the community seeks balance in protecting our rich ‘food bowl’ status.”