The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Urban Leader Awards Logos RGB White
NOMINATIONS CLOSING TONIGHT FINAL CHANCE TO GET RECOGNISED FOR YOUR WORK
NOMINATIONS CLOSING TONIGHT | URBAN LEADER AWARDS
NOMINATE NOWDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
57
print
Print
Real EstateDinah Lewis BoucherFri 31 Jul 20

Regional House Prices Outpace the Cities

f53d8b24-7bdb-4bf1-a801-d29af4b94050

Regional property markets recorded an average of 3.4 per cent median house price growth in the 12 months to June this year, effectively triple the growth of the nation's capital city markets for the period.

Capital city markets recorded the least growth with a one per cent uptick for the period, according to the Australian and Economic Property report released by PRD.

PRD Real Estate chief economist Dr Diaswati Mardiasmo says regional markets were slightly more insulated from economic shocks in the face of Covid-19, with less reliance on international trade and a more affordable housing market.

Regional Tasmania and New South Wales led the median house price growth, with 9.8 per cent and 5.3 per cent in the 12 months to the first half of 2020.

This was followed by regional Victoria, at 4.4 per cent and the Northern Territory at 2.2 per cent.

Capital city metro median house price growth

1st Half 20192nd Half 20191st Half 2020
NSW$1,158,700$1,242,100$1,300,200
QLD$554,400$567,400$561,200
VIC$815,500$876,600$859,300
WA$538,700$538,800$527,200
TAS$504,700$521,900$556,400
NT$489,900$462,600$472,500
SA$542,300$533,200$517,700
ACT$984,300 $$974,200$1,000,500

^For the year to June. Source: PRD Australia Economic and Property Report 2020


Australia's capital city markets recorded an average one per cent median house price growth over the 12 months to June 2020.

For context, national capital city price growth for the same year prior, clocked up an average of 6.7 per cent.

But Mardiasmo says capital city markets fared better than expected, with growth led by Melbourne, Sydney, and Hobart.

“Capital city markets did experience the most tumultuous ride throughout Covid-19, however they held value and finished on a balance, recording an average of 1 per cent median house price growth in the 12 months to the first half of 2020,” she said.

Melbourne and Sydney led the price growth with 14.3 per cent and 10.8 per cent median house price growth in the 12 month period.

Hobart followed with 9 per cent growth and then Brisbane at 3.6 per cent.

Regional median house price growth

1st Half 20192nd Half 20191st Half 2020
NSW$494,400$516,900$520,600
QLD$441,100$451,600$441,300
VIC$399,000$413,300$416,600
WA$329,100$321,800$327,300
TAS$307,700$324,900$338,000
NT$413,600$370,800$423,800
SA$298,100$303,100$304,700

^For the year to June 2020. Source: PRD Australia Economic and Property Report 2020

“Uncertainty about the health situation and the future strength of the economy is making many households and businesses cautious. ...despite the curveballs, the property market has been remarkably resilient, and demand has been stronger than many people anticipated,” Mardiasmo said.

In the June quarter, about three months into the Covid-19 economic slowdown, Corelogic's Eliza Owen said data showed regional centres had seen higher capital growth than the capital city regions.

ABS data shows the value of new loan commitments for Australian housing fell a sharp 11.6 per cent in May, driven by falls for housing loans in New South Wales and Victoria.

Australia's rental market has also shifted in focus during the height of Covid-19 due to related job losses.

Recent SQM research shows regional areas have taken a stronger hold of the rental market, with vacancies outside the cities tightening and the biggest quarterly drops seen in regional New South Wales, followed by Queensland and Victoria.

In his budget update last week, treasurer Josh Frydenberg tipped a major fall in net migration, revealing Australia’s numbers could fall from 154,000 in 2019-2020 to 31,000 in 2020-2021.

Frydenberg said the unemployment rate—currently at 7.4 per cent—is anticipated to hit 9.25 per cent in the December quarter.


ResidentialAustraliaReal EstateSector
AUTHOR
Dinah Lewis Boucher
More articles by this author
ADVERTISEMENT
TOP STORIES
Exclusive

Precinct Proposals Bloom as Brisbane Middle-Ring Sheds its Past

Phil Bartsch
8 Min
Exclusive

Newest Land Lease Player Plots Sector Shake-Up

Taryn Paris
5 Min
Waterloo Affordable Mirvac hero
Exclusive

Affordable Housing Rules Tighten as Proposal Deluge Continues

Clare Burnett
5 Min
Exclusive

Beyond the Aerotropolis: How Airports are Turning into Cities

Taryn Paris
6 Min
Exclusive

Inside the Strategy Behind Australia’s Largest Direct Real Estate Deal

Phil Bartsch
5 Min
View All >
Industrial

Melbourne Steps Out of Sydney Data Centre Shadow

Lindsay Saunders
Morris Property Group London Circuit concept HERO
Planning

Site Consolidation Bid Latest Step for ACT Office Plan

Leon Della Bosca
Sterling Global 623 Collins Street tower rendering HERO
Development

Sterling Global Greenlit for Melbourne Heritage Highrise

Leon Della Bosca
A Gold Rush-era bank is beginning a new chapter in its long history, as the cornerstone for a 41-storey tower on Collins…
LATEST
Industrial

Melbourne Steps Out of Sydney Data Centre Shadow

Lindsay Saunders
4 Min
Morris Property Group London Circuit concept HERO
Planning

Site Consolidation Bid Latest Step for ACT Office Plan

Leon Della Bosca
3 Min
Sterling Global 623 Collins Street tower rendering HERO
Development

Sterling Global Greenlit for Melbourne Heritage Highrise

Leon Della Bosca
4 Min
Infrastructure

Fast-Track Funding Clears Way for 13,000 Queensland Homes

Lindsay Saunders
2 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/regional-property-price-growth-outpaces-capital-city-markets-over-year