Regional housing markets in Australia have continued to outperform capital markets in terms of price growth over the past 12 months, according to the latest regional market update from CoreLogic.
During the year up to April, housing values ??in regional markets increased by 13%, which is significantly higher than the 6.4% gain in the value of capital cities.
Tim Lawless, research director at CoreLogic, said the better performance in regional markets reflected a shift in demand amid the COVID-19 pandemic.
"This may be partly due to the new popularity of remote and flexible work arrangements, but also the increased demand for lifestyle-oriented properties and vacation homes," he said. he declares.
Affordability is also a major factor. Over the past month, there was a difference of $ 247,400 between the median value of dwellings in the capital and regional dwellings.
Richmond-Tweed, New South Wales, has emerged as the top performing regional market over the past year. It recorded an annual price appreciation of 21.9%. Median values ??for the region were $ 790,015 for houses and $ 554,762 for units.
"This region includes prominent seaside destinations such as Byron Bay, Suffolk Park and Lennox Heads as well as popular hinterland villages like Bangalow," Lawless said.
Lawless believes that regional housing markets will continue to report above average levels of demand, especially markets close enough to capital cities.
Nonetheless, while gains in regional markets are good news for local owners, soaring prices could also hurt the affordability of markets for potential buyers.
"Particularly for longtime residents whose incomes are not expected to increase at a rate close to that of house price appreciation, they may be forced to seek housing options further," Lawless said.
Top suburbs:
North Lambton
,
fresh water
,
Midland
,
Westmead
,
Windale
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