Capital city house price boom rubs off on regions
Regional areas are seeing strong property market performance off the back of capital city booms.
New analysis from CoreLogic has revealed that regional markets are experiencing a strong rise in prices. The research surveyed the 50 most populous non-capital city markets, and found the majority had seen prices rise for both houses and units. The strong performance came even as capital city property prices fell in May.
Wollongong in New South Wales saw the greatest increase in house values for the 12 months to May, with median prices rising 17.6%. The area was the most expensive regional area for both houses and units, with a median house price of $739,427 and a median unit price of $530,170. CoreLogic researcher Cameron Kusher said Wollongong’s performance was heavily influenced by strong price rises in Sydney.
“Places like Wollongong are on the rise as demand ripples away from Sydney where affordability constraints are more pressing,” he said.
Regional areas in proximity to Melbourne also saw strong performance, though Kusher said price rises were “nowhere near the magnitude to which values are growing in those locations close to Sydney”.
“Although values are rising, the softer growth can be linked to the fact that values have not risen as sharply in Melbourne as they have in Sydney, and subsequently affordability hasn’t deteriorated as severely in Melbourne,” he said.
In Queensland, some regional areas are outperforming the capital, Kusher said. The Gold Coast, Sunshine Coast and Noosa all recorded more rapid value growth than Brisbane.
“Overall, we’re seeing housing demand in regional areas of the country is rising,” Kusher said. “While many regions are seeing values increase, the strongest demand appears to be in those areas with relatively close proximity to capital cities, particularly those which are coastal and tap into lifestyle demand.”