According to the latest report from CoreLogic, regional housing markets continue to perform, benefiting from the effects of the COVID-19 outbreak in capital cities.
Of all the regional markets, the Launceston and Northeast region of Tasmania saw the largest price increases in the three months ending October at 10.5%, maintaining its leadership position for a third consecutive quarter.
In terms of units, Launceston & North East lost its place as the cheapest, with the Southern Highlands and Shoalhaven of New South Wales rising to number one with 8.6% growth in values .
The Bunbury area of ??Western Australia topped the sales rankings, reporting 24.6% growth in home sales and 38.7% in unit purchases .
Victoria & # 39; s Ballarat reported the shortest days on the market for homes at 29 days. Launceston and northeast Tasmania, on the other hand, had the fastest sell times for units at 26 days.
Eliza Owen, head of Australian research at CoreLogic, said several factors have contributed to the continued resilience of regional real estate markets amid the pandemic, such as lower density levels, lower prices, and higher prices. cheaper purchase and standardization of working from home.
"The results of this report support an increase in demand outside of cities. Housing markets in the Australian region have experienced higher growth rates than those in capital cities during the pandemic," she said. declared.
In fact, year-to-October, combined prices in regional housing markets rose 4.8%, more than the 3.9% increase. in the capitals.
Migration figures from the Australian Bureau of Statistics can also indicate how demand has shifted to regional markets, Owen said.
"This is explained by the fact that movements to regional Australia have increased, while departures from the regions have slowed. As a result, the demand for housing in regional Australia will have increased at a time when the stock available for sale is relatively low, ”she said.
As mortgage rates remain low and confidence continues to emerge in property markets, there is a high likelihood for a broader recovery in regional and capital markets through the first quarter of 2021, Owen said.
However, Owen warns that the recovery of regional markets could have a downside.
"For early local buyers, decreasing affordability may become an issue. Growth may start to slow in areas that have already experienced a sustained recovery, due to these accessibility constraints," she declared.
Areas such as Illawarra, Newcastle and Lake Macquarie, the Gold Coast and the Sunshine Coast are some examples of regional areas that have reported substantial price gains. From year to October, price increases in these regions have already exceeded 7%.
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