PropTrack’s 10-year growth tracker reveals how the shift in lifestyle from city centers to regional cities has driven up prices in many countries and coastal regions of Australia.
Nine of the top 10 areas that experienced the highest level of growth over the past year were in regional centers, with only Sydney making an appearance in tenth place.
PropTrack’s director of economic research Cameron Kusher admitted the trend was not entirely new, as parts of regional Australia, mainly those adjacent to capital cities, had seen price growth for many years.
“But the flexible COVID-based working arrangements, and people reassessing their lifestyles due to the pandemic, have accelerated the movement of people out of capitals,” Kusher said.
“It’s not just a permanent move out of the capital, but also people looking for second homes and investment properties in these lifestyle markets which have all contributed to the rapid rise in prices. price.”
Data from PropTrack shows that national house prices have increased by 89% on average over the past 10 years, while prices in capital cities have increased by 92%, compared to 82% in regional areas.
Some desirable areas, however, have experienced growth well above the national rate.
The Australian suburbs with the strongest price spikes are:
- Malmsbury, Regional Vic, up 434.6 percent
- , Regional Vic, up 371.7 percent
- Maiden Gully, Regional Vic, up 348.3 percent
- Moore Creek, NSW regional, up 341.9 percent
- Newlands Arm, Regional Vic, up 311.3 percent
- Largs, NSW regional, up 308.1%
- Lucas, Regional Vic, up 296.1%
- Marysville, Regional Vic, up 290.2%
- Kleinton, regional Qld, up 282.3 percent
- The Ponds, Sydney, up 271.4%
Mr Kusher explained that before the COVID-19 hit, the real estate market had started to recover from the price cuts suffered from 2017 as a result of the macroprudential tightening of credit rules.
After some uncertainty in March 2020, COVID-19 has shifted this gradual rise into high gear.
“The combination of the lowest mortgage rates in history, a shortage of inventory to sell and supply continuing to shrink, fewer alternative options for households to spend their money on due to border closures, labor remote and lockdowns as well as targeted government support that has limited the economic fallout from COVID, all have contributed to a very rapid rise in prices since the start of the pandemic, ”Kusher explained.
The areas that experienced the strongest price growth felt the impact of their desirability converging with a domestic supply problem.
“It doesn’t take much more demand in these small areas to exacerbate the shortages and push the prices up quickly,” Kusher noted.