Regions reap rewards from lack of housing affordability in capitals

Adam Smith 26 May 2016

Which capital city had the fastest home value growthAffordability pressures are seeing more home buyers look to regional areas, a new report has indicated.

CoreLogic’s Regional Report has found regional areas are showing a rise in transaction levels and median values as buyers look for more affordable alternatives to capital cities. New South Wales’ Illawarra region has seen the best year-on-year performance, with house values rising 15.8% and unit values increasing 13.2%.

“The Illawarra region has been a standout performer in the past year,” CoreLogic research analyst Cameron Kusher said. “As you would expect, this market has been driven largely by a surge in Sydney property prices as people find themselves priced out of the capital city housing market. The Illawarra region offers not just an affordable alternative for owner occupiers; it’s also attracting buyers keen to secure holiday homes.”

Richmond-Tweed was the only NSW region to see sales volumes increase over the year, rising 10.8%.

In Queensland, the Gold Coast saw the biggest increase in dwelling sales, up 7.3%. Regional Townsville saw the largest decline in sales volumes, down 8.3%.

Victoria saw dwelling sales rise 2% across Geelong and 7.4% across the Latrobe-Gippsland region.

In Western Australia, sales volumes for Bunbury were down 9.2% for houses and 24.1% for units, putting transaction levels 4.2% below the five-year average for the region.

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