When it comes to Australian property price growth over the past decade, it’s been a two horse race between Sydney and Melbourne.
They’ve galloped away, leaving the smaller capitals in their wake.
Nothing quite demonstrates that point better than the chart below from CoreLogic, showing the nominal change in prices by capital city and regional areas.
With prices soaring in Sydney and Melbourne, it’s actually seen prices in regional New South Wales and Victoria also outperform all other capitals over the decade, fuelled in part by growing affordability constraints forcing some prospective buyers to look outside the cities.
It’s been a “spillover effect”, in essence.
Now that prices are going backwards in Sydney, and slowing sharply in Melbourne, it suggests that regional areas surrounding those cities may also see prices start to weaken.