No reprieve for buyers in regional markets

As for CoreLogic’s latest quarterly regional market update, home values ​​in the combined regions jumped nearly 25% (23.9%) in the year to April 2022.

This contrasts sharply with the 14.6% growth seen in Australian capitals.

Even though the heat is starting to leave the market, CoreLogic’s director of research, Tim Lawless, said anecdotally they “still see strong demand for regional housing supported by high internal migration rates.”

“The strong level of demand is supported by home sales estimates, which were 20.1% above the previous five-year average in the three months ending April 2022.

“It appears that many employers in affected industries have implemented permanent hybrid working arrangements for staff, which is likely to support the trend of higher demand in regional Australia,” he said. .

Increased fervor around regional buying is clearly visible, with sales activity around 20% above the five-year average for regional Australia.

This is despite the number of homes available for sale across regional Australia being “more than 40% below the five-year average and 20.5% lower than a year ago”.

“Obviously we still see a disconnect between available supply and demonstrated demand,” commented Lawless.

This is evident in some of the latest sales data, with homes in the Queensland town of Toowoomba showing the fastest selling times, spending just 13 days on the market, on average, over the past few months. last 12 months.

the SunSun, NSW Sun, VIC The Coast and Gold Coast markets are not far behind, with both regions reporting that properties only spend 16 days on the market before being purchased.

Elsewhere, the Hunter Valley (excluding Newcastle) is also offering gains for sellers, with the region offering the lowest discount to secure a sale, at just -1.8%.

And while prices have risen astronomically in many areas, Lawless noted that regions adjacent to capital cities are still a bit more affordable than their metropolitan counterparts.

In the Newcastle and Lake Macquarie area, the median home value remains $250,000 lower than Greater Sydney, while the median home value in the Illawarra area is $143,000 below the median price of Sidney.

In Victoria, it’s a similar story, with prices in the regional town of Ballarat $203,000 lower than the Melbourne median.

Looking ahead, as the outlook for non-capital markets may soften – and hopefully become more sustainable Mr Lawless does not see many parts of Australia experiencing a short-term downturn.

“It can be said that some regional markets will be somewhat insulated from a significant decline in housing values ​​due to a persistent imbalance between supply and demand,” he said.

“We continue to see advertised stock levels remain extraordinarily low across regional Australia and established selling activity appears to be holding firmer relative to capitals.”

Overall, much will depend on regional migration patterns, with Lawless concluding that he expects many of the current demographic trends to continue to favor regional markets – “particularly regions with a certain lifestyle to a few hours drive from the main capitals”.

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Real estate

Real estate is a type of real property that refers to any land and its permanent improvement or accompanying structures, whether natural or man-made.

Real estate

Real estate is a type of real property that refers to any land and its permanent improvement or accompanying structures, whether natural or man-made.

About the Author

Grace Ormsby

Grace is a reporter for real estate and investment brands Momentum. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communications (Journalism) from Newcastle University. She is passionate about providing easy-to-digest information and relevant content for her key audiences and… Read more

No reprieve for buyers in regional markets




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Last update: May 20, 2022

Posted: May 21, 2022