CoreLogic’s latest quarterly regional review analysed 25 of Australia’s largest non-capital cities, and while people seem to be leaving the capitals in droves, elsewhere in Australia there is a far more rosy outlook.
Illawarra has recorded both the largest rise in housing values, and the biggest jump in home sales over the past 12 months. Illawarra’s annual growth rate sits at 12 per cent in July 2020, while volumes were up 14 per cent over the year to May 2020.
In the regional unit market, Launceston and North East Tasmania recorded the largest annual growth rate of 14.8 per cent in July.
Victoria’s Ballarat has the strongest selling conditions, with homes “selling in just 30 days and with minimal discounting levels”.
Tim Lawless, Head of Research at CoreLogic explains that regional housing values have held firm through the COVID period, noting how dwelling values across regional areas have only dropped 0.1 per cent between March and the end of July, while, over the same period, capital city home values are down 2 per cent.
Of the separate 25 house and 25 unit markets included in the analysis, overall, 37 have seen values rise over the 12 months to July.
Twenty regions recorded a rise in the value of houses, while 17 regions recorded a rise in unit values.
“While the region by region data shows diversity, the relatively steady conditions across the regional markets of Australia can probably be attributed to factors such as less impact on housing demand from stalling overseas migration,” Mr Lawless said.
“Close to 85 per cent of Australia’s net overseas migration flows into the capital cities. Also there likely remains some momentum in the trend towards rising demand for lifestyle properties that was prevalent prior to COVID-19.
“Regional areas offer up a variety of advantages and risks compared with their capital city counterparts.
“On the positive side, housing prices tend to be lower, providing a more affordable entry point to the market, population densities are generally lower which is something that might be even more appealing as we move through this pandemic, and in many examples, regional areas will offer some lifestyle advantages, either via the location’s proximity to the
coastline or wide open spaces.
“On the downside, regional economic conditions can be more volatile, especially those areas that are heavily dependent on a single industry for economic prosperity, and some areas may not show the same level of amenity and access to essential services as a capital city or major centre,” Mr Lawless said.
