A New South Wales region has recorded both the largest rise in housing values, as well as the biggest jump in home sales over the past twelve months, new data shows.
Illawarra, south of Sydney, came out on top in Corelogic’s regional market update, with Launceston in Tasmania showing the highest growth for units.
Victoria’s Ballarat had the strongest selling conditions, with homes selling in just 30 days at minimal discounting levels, while Townsville in Queensland had the worst selling conditions.
Broader regional housing values have held firm through the Covid-19 period compared with their capital city counterparts.
Dwelling values across the combined regional areas of Australia slipped by only 0.1 per cent between March and the end of July, while capital city home values are down 2.0 per cent over the same period.
Best and worst regional performances
|Yearly growth||Illawarra, NSW 12.0%||Bunbury, WA -6.3%|
|Change in sales volume||Illawarra, NSW 14.0%||Launceston and North East, Tas -13.8%|
|Days on market||Ballarat, Vic 30 days||New England and North West, NSW 99 days|
|Vendor discounts||Ballarat, Vic -2.4%||Townsville, Qld -5.9%|
|Yearly growth||Launceston and North East, Tas 14.8%||Hume, Vic -11.1%|
|Change||Latrobe - Gippsland, Vic 34.6%||Launceston and North East, Tas -23.7%|
|Days on market||Launceston and North East, Tas 26 days||Wide Bay, Qld 105 days|
|Vendor Discounts||Ballarat, Vic -2.1%||Townsville, Qld -6.2%|
^ Source: Corelogic results, July 2020
Corelogic head of research Tim Lawless said the relatively steady conditions could be attributed to stalling overseas migration which impacted the metropolitan regions far more than regional areas.
“Close to 85 per cent of Australia’s net overseas migration flows into the capital cities,” Lawless said.
“Also there likely remains some momentum in the trend towards rising demand for lifestyle properties that was prevalent prior to Covid-19.”
The analyst said regional areas offer up a variety of advantages and risks.
“On the positive side, housing prices tend to be lower, providing a more affordable entry point to the market, population densities are generally lower which is something that might be even more appealing as we move through this pandemic,” Lawless said.
“In many examples, regional areas will offer some lifestyle advantages, either via the location’s proximity to the coastline or wide open spaces.
“On the downside, regional economic conditions can be more volatile, especially those areas that are heavily dependent on a single industry for economic prosperity, and some areas may not show the same level of amenity and access to essential services as a capital city or major centre.”