Regional Australia continues to outpace the capital cities, with dwelling values rising 3.3 per cent over the three months to April – triple the 1.1 per cent recorded across the combined capitals.
The latest Cotality Regional Market Update shows that while momentum has eased nationally, regional markets have proven more resilient than their urban counterparts.
Three in five of the country’s 50 largest regional Significant Urban Areas recorded slower growth this quarter, but the gap between regional and metropolitan performance continues to widen.
Gerard Burg, Cotality’s Head of Research for Australia, said affordability remains the key driver.
“We are seeing a clear loss of momentum at the national level, but regional markets are proving more resilient than their capital city counterparts,” he said.
“Internal migration patterns continue to favour regional areas where buyers can find greater value and a different pace of life.”
Regional Western Australia is leading the charge. Values across the state’s regional areas rose 5.9 per cent over the quarter, up from 5.6 per cent in the previous period.
Busselton recorded the strongest quarterly growth of any major regional area nationally at 7.5 per cent, followed by Albany at 7.2 per cent, Geraldton at 6.8 per cent, and Bunbury at 5.8 per cent.
“The strength in southwest WA is particularly notable,” Mr Burg said.
“Busselton’s growth is occurring despite it having a higher median value than Greater Perth, which suggests this performance is being driven by more than just affordability. We’re seeing a significant spillover of demand from the Perth market into nearby regional hubs.”
Queensland also posted strong results, led by Townsville, Maryborough, and Toowoomba. Tasmania saw renewed momentum driven by Burnie-Somerset and Launceston.
That said, not all regional markets are rising.
Parts of New South Wales and Victoria recorded declines, with Bowral-Mittagong falling 1.2 per cent and Albury-Wodonga easing 0.2 per cent.
The supply-demand imbalance is most acute in Western Australia and Queensland.
Median selling times sit at 17 days in WA and 24 days in Queensland – the fastest in the country.
Albany recorded the shortest selling time nationally at just 10 days, followed by Busselton at 12 days.
New South Wales markets recorded the weakest selling conditions. Batemans Bay and Bowral-Mittagong both sat above 65 days on market.
Regional rental markets also remain tight.
Vacancy rates sit at 1.9 per cent nationally, with some markets far tighter – Lismore at 0.4 per cent, and Geraldton and Albany at 1.0 per cent.
Regional gross rental yields held steady at 4.2 per cent in April, compared with 3.6 per cent across the combined capitals.
Kalgoorlie-Boulder remains the highest-yielding major regional market at 8.1 per cent.