Mixed signals from regional property results
Australia’s property slowdown has hit regional areas, though some are outperforming their big city counterparts.
New CoreLogic analysis has found a moderate decline for regional property values. Combined regional market property values were flat for the month of October, and down 0.1% for the quarter.
“The quarterly decline in values was the largest fall since the three months to October 2014, while the 4.9% annual change was the lowest annual change since February 2017,” CoreLogic analyst Cameron Kusher said.
But Kusher said the data gave a mixed picture of regional markets.
“While the data indicates that the rate of dwelling value growth is slowing, there are some differences occurring across the regional markets of the states and territories,” he said.
In regional New South Wales, Kusher said dwelling values outpaced Sydney. Property values were up 0.7% for the quarter, to be 9.7% higher for the year. Regional Victoria, however, underperformed Melbourne. Values in regional Victoria were up 4.4% for the year to the end of October, compared to an 11% rise for Melbourne.
Regional areas of Queensland, South Australia and Western Australia all saw declines, with price drops in regional WA happening at a slightly faster pace than in Perth. Prices in regional areas of the Northern Territory actually bucked Darwin’s trend, rising slightly as compared to the 5.7% decline for the capital city.
“Growth in regional dwelling values generally continues to lag capital cities however, in most states the growth in values of regional property markets are generally stronger than they have been over recent years,” Kusher said.