Regional Australia property market still outpaces capital cities
“CoreLogic’s Research Director Tim Lawless says there are many reasons why the rapid rate of growth for regional areas has continued as conditions in capital city markets, particularly Sydney and Melbourne, have softened in recent months”.
“Red hot Regional Australia property markets are showing signs of slowing, despite outpacing capital cities due to chronically low listings and sustained buyer demand.”
CoreLogic’s quarterly Regional Market Update, released today, shows the growth rate across Australia’s 25 largest non-capital city regions has slowed from a peak of 6.6% in April last year to 4.7% in the three months to April 2022.
Dwelling values across the combined regions jumped 23.9% in the year to April 2022, outpacing the combined capital city dwelling growth rate of 14.6% for the same period.
“Although demographic data is significantly lagged, anecdotally we are still seeing strong demand for regional housing supported by high internal migration rates,” Mr Lawless says.
“The high level of demand is supported by estimates of home sales, which were tracking 20.1% above the previous five-year average over the three months ending April 2022.
“It seems many employers across the relevant industries have implemented permanent hybrid working arrangements for staff which is likely to be supporting the stronger demand trend across regional Australia.”
Generally regional housing prices remains more affordable than their capital city counterparts and while the comparison doesn’t always hold true for the most popular regional locations, Mr Lawless highlights examples such as the Newcastle and Lake Macquarie region where median dwelling values remain $250,000 lower relative to Greater Sydney.
The above is an extract from Core Logics’ Blog, dated 17th May 2022– for the full blog CoreLogic Quarterly Regional Market Update
Download for free their Regional Market Update Report https://www.corelogic.com.au/news-research/reports/regional-market-update