Perhaps buoyed by those looking for a sea change, or rapid price gains in the Sydney and Melbourne property markets, demand for property in regional Australia is starting to lift.
According to CoreLogic, the value of property sales in regional areas increased by 3.3% to $67.9 billion in the year to March, far stronger than the 0.3% decline registered in capital city sales which was largely due to a decline in turnover levels.
The table below, supplied by CoreLogic, shows where the greatest increase in the value of sales has been over the past 12 months.
Clearly, it’s dominated by regional council areas.
Cameron Kusher, research analyst at CoreLogic, notes that this is not only reflective of higher house prices, but also an increase in sales in most regions.
“Of the 50 council areas nationally that have recorded the greatest annual increase in the value of sales, only 4 of the 50 areas listed are located in capital cities,” says Kusher.
“In 43 of the 50 regions listed the percentage increase in the total value of sales has been greater than the lift in sales volumes. This tends to reflect an increase in values along with an uplift in demand.
“In fact, only 3 of the 50 regions listed have recorded fewer sales over the past 12 months.”
In what will surprise few given the enormous price gains seen in Sydney over recent years, the list was dominated by council areas in regional New South Wales.
And Kusher thinks that trend will continue.
“With mortgage rates low, certain capital city housing markets becoming unaffordable and an improvement in confidence surrounding regional housing, we would expect many of these council areas to see further increases in the total value of sales over the coming year.”
While demand is rising, the ability to find employment will also play a crucial role in determining just how long this trend can continue.