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- Regional Australia has been the prime beneficiary of the booming property market, as prices rise 13 per cent over the last 12 months, doubling the growth rate in the capital cities
- A report from CoreLogic found Richmond-Tweed in NSW took the top spot for capital gains across both house and unit markets, with a 21.9 per cent and 15.5 per cent annual growth, respectively
- Bunbury in WA was the worst performer across both house and unit markets, with three per cent and -4.4 per cent yearly growth respectively
- CoreLogic research director Tim Lawless said the faster pace of growth reflects stronger demand flowing into the regional areas of Australia through the COVID-period to date
- A net 43,000 Australians moved to regional areas from capital cities in 2020, according to figures released by the Australian Bureau of Statistics (ABS)
Regional Australia has been the prime beneficiary of the booming property market, as prices rise 13 per cent over the last 12 months, doubling the growth rate in the cities.
The housing market in the regions has far outpaced the country’s capital cities which enjoyed a 6.4 per cent gain in the last 12 months.
CoreLogic’s quarterly Regional Market Update looks at capital growth over the 12 months to April 2021 in Australia’s 25 largest non-capital city markets.
The report found Richmond-Tweed in NSW took the top spot for capital gains across both house and unit markets, with a 21.9 per cent and 15.5 per cent annual growth, respectively.
Bunbury in WA was the worst performer across both house and unit markets, with three per cent and -4.4 per cent yearly growth respectively.
CoreLogic research director, Tim Lawless, said the faster pace of growth reflects stronger demand flowing into the regional areas of Australia through the COVID-period to date.
“This can partly be explained by the new popularity of remote and flexible working arrangements, but also increased demand for lifestyle oriented properties and holiday homes,” he said.
“No doubt the more affordable housing options across many of Australia’s regional markets is another incentive; in April there was a $247,400 difference between the median value of capital city dwellings and regional dwelling,” he commented.
“Playing into the lifestyle trend, it’s no surprise to see the Richmond-Tweed area topping the list for capital gains over the past 12 months. This region includes high profile beachside destinations such as Byron Bay, Suffolk Park and Lennox Heads as well as popular hinterland villages such a Bangalow. The median house value across the Byron council area is now $1.4 million, which is higher than Greater Sydney’s median of $1.147 million,” Lawless added.
A net 43,000 Australians moved to regional areas from capital cities in 2020, according to figures released by the Australian Bureau of Statistics (ABS). This was the largest net inflow to the regions since the beginning of the series in 2001.
ABS director of demography, Phil Browning, said that in recent decades, more people moved from Australia’s capital cities to the regions than from the regions to the capitals, resulting in a net internal migration gain for regional areas.
“There are still many residential moves occurring within Australia during the COVID-19 pandemic. In the 2020 calendar year, 233,100 people arrived to live in regional areas and 190,200 people departed for the capitals,” he said.
“This resulted in a net gain of 43,000 people for the regions, up from 18,900 in 2019,” he added.
Looking forward, regional housing markets remain well placed to record higher than average levels of demand, according to Lawless.
“Especially those markets that are located close enough to capital cities to provide a commuting option, and those lifestyle markets that are popular with sea and tree changers.
“While surging values are probably good news for homeowners in these regions, for those that don’t own a home, affordability is being stretched. Particularly for long-time locals whose incomes are unlikely to be rising at anywhere near the pace of house price appreciation, they may be forced to seek out housing options further afield,” Lawless concluded.
In their Q1 Rental Review report, CoreLogic noted an increase across the combined regional markets as rents rose 4.1 per cent in the first quarter of the year, while rents in the combined capitals increased 2.9 per cent.
