Housing market explodes across regional Australia

Home values ​​have grown by more than 30% in the calendar year in the most popular regional markets, with NSW at the top of the list.

Home values ​​in the Australian region have hit a nine-month high, with the regional NSW beating some of the nation’s capitals.

Regional markets gained new momentum as more people sought out weekend properties and flexible working conditions at home allowed workers to escape the city.

CoreLogic data released on Tuesday predicted the emergence of a two-tier housing situation in the country, with Queensland and Adelaide poised to turn the tide of a 2022 slowdown currently seen in Sydney, Melbourne and Perth.

The most popular regional markets saw home values ​​increase by over 30% in the calendar year, with the Southern Highlands and Shoalhaven recording the largest annual increase in home values ​​at 37.7%, followed by the Sunshine Coast of Queensland at 33.7%.

CoreLogic research director Tim Lawless said home values ​​across regional Australia were up 32%, compared to the 5.1% increase seen in the September quarter.

“This potentially reflects a new wave of demand as buyers emerged from extended lockdowns in Sydney and Melbourne,” Lawless said.

“It is likely that regional markets, especially those with attractive lifestyles, will continue to benefit from higher demand, as remote work policies are more standardized and demand for vacation homes remains strong in the region. a context of restrictions at international borders. ”

CoreLogic data revealed Sydney and Melbourne have slowed down significantly, generating the weakest monthly results since October 2020, as buyers face higher deposit hurdles due to the combination of weak revenue growth. and high real estate prices.

Housing stock is low across regional Australia, with reported inventory levels ending the year well below the five-year average at 35.9%.

This compares to the combined capitals posting stock 14.2% below the five-year average.

As interest rates begin to bottom out and affordability constraints spread to regional markets, these housing markets could also enter a downturn during 2022.

“In many cases, buyers have moved to regional areas to avoid paying the same amount of money as they would in Sydney,” Lawless said.

“Conditions will slow down next year, with issues such as housing affordability continuing to impact the Sydney market. As long as NSW regional values ​​remain consistently high, buyers will continue to make a drastic shift or tree change to suit their lifestyle.
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Originally published as NSW regional homes topped Australia’s most valuable list