Australia’s regional property markets continue their upward trajectory, though the pace has tempered, according to the latest figures from CoreLogic.
Affordability challenges are beginning to curb the rapid price growth seen in recent years, particularly in
coastal and country towns. A better balance between supply and demand is also at play, as more properties come onto the market and the pandemic-driven exodus from cities starts to ease.
The pandemic sparked a remarkable shift, with many Australians – especially millennial families – opting for the coast or countryside, fuelled by newfound work-from-home flexibility. This surge in demand permanently recalibrated property values, lifting both home prices and rental rates across the regions. Currently, regional home values are 52.5% higher than pre-pandemic levels, a substantial leap compared to the 33.4% rise in capital cities. Regional rents, too, are up by 39.1%, outpacing the 35.4% growth in city rents.
Higher interest rates are adding to the cooling effect, reducing borrowing power and pushing affordability constraints to the forefront.
In the three months leading up to July 31, regional home values rose by 1.3%, a noticeable slowdown from the 2.2% growth recorded in the previous quarter. However, the regional markets remain resilient, with 60% of the 50 largest areas experiencing value increases. Notably, 11 regions recorded growth above 3%, signalling robust market conditions in select locations.
Regional Queensland led the charge this quarter, with Gladstone standing out for its 9.2% rise in home
values. Other notable performers included Townsville (7.8%), Rockhampton (4.8%), Kingaroy (4.5%), and
Mackay (4.3%). In New South Wales, Lismore saw a 3.1% increase, with Ulladulla, Muswellbrook, and Singleton following suit. Victoria’s market showed mixed results, with Swan Hill and Bairnsdale performing well, while Ballarat and Wangaratta saw declines.
As the Spring season unfolds, we’ll see how the traditional increase in listings influences both regional and city markets in the months ahead.
