I know someone who moved out there a few yrs back. Some small towns can actually have great tenants due to teachers, nurses, ambulance officers, state gov and council workers etc etc, all have reliable employers and many have points schemes so spend a few yrs out there and return (e.g. teachers then you have access to transfer to the best schools in the state.) it can be a good career move for those prepared to travel for a while and see another kind of lifestyle. Obviously many of those kind of tenants won't buy unless they fall in love with the place and want to stay for good.
FYI current vacancy rate in condo is 0.5%
As to whether it makes a good investment? Thats a bit more complex and individual. The small towns in western NSW do represent some opportunities in my book but the risks are real and one should understand them prior to purchasing. Predicting growth is really tricky.