CoreLogic's latest quarterly regional review analyses 25 of Australia’s largest noncapital city markets and it has uncovered the latest reactions to this COVID period. 

"Broadly, regional housing values have held firm through the COVID period compared with their capital city counterparts," said Tim Lawless, Head of Research.

"With dwelling values across the combined regional areas of Australia slipping by only 0.1 per cent between March and the end of July, while capital city home values are down 2 per cent over the same period.  

At a Glance:

• Analysis 25 of Australia’s largest noncapital city markets is part of the CoreLogic quarterly regional review
• Several major urban centres close to Sydney and Melbourne show tightest detached housing market conditions in past twelve months
• Highest housing growth in Illawarra and highest unit growth in regional Tasmania

"While the region by region data shows diversity, the relatively steady conditions across the regional markets of Australia can probably be attributed to factors such as less impact on housing demand from stalling overseas migration. 

"Close to 85 per cent of Australia’s net overseas migration flows into the capital cities.

"Also there likely remains some momentum in the trend towards rising demand for lifestyle properties that was prevalent prior to COVID-19."

Mr Lawless said regional areas offer up a variety of advantages and risks compared with their capital city counterparts. 

"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, and in many examples, regional areas will offer some lifestyle advantages, either via the locations proximity to the coastline or wide open spaces," said Mr Lawless. 

"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." 

The detail in the report shows several of the major urban centres within close proximity to Sydney and Melbourne have shown the tightest detached housing market conditions over the past twelve months.

The Illawarra region has recorded both the largest rise in housing values, as well as the biggest jump in home sales over the past twelve months, while Victoria’s Ballarat has shown the strongest selling conditions, with homes selling in just 30 days and with minimal discounting levels.

corelogic_regional_houses.jpg

Source: CoreLogic

Joe Abboud of The Agency, Illawarra told WILLIAMS MEDIA they had seen a definite increase in both price and enquiry in the area, since COVID-19.

"There are two markets where most of the action has been happening," said Mr Abboud.

"The first home buyers have always been there and the Illawarra offers affordable housing.

"People are starting to look outside  the city areas, for lifestyle, beaches and open spaces

"The second group is specifically around the North Wollongong and Thirroul areas that have seen an influx of buyers from outside the area, especially Sydney.

"Quite often at an auction, you may have 11 registered bidders and they will all be from Sydney."

corelogic_regional_units.jpg

Source: CoreLogic

Across the unit market it is the Launceston and North East region of Tasmania that tops the tables with unit values rising almost 15 per cent over the past twelve months.

Mark Berry, CEO of REIT said units and houses alike were experiencing a growth in value.

"Supply and demand are pushing up the prices as there is not a lot of property out there on the market," said Mr Berry.

"Units are popular with young people or first home buyers, who are just wanting to be able to get onto the property ladder.

"We believe this is sustainable at the moment as we have a very strong market, even during Coronavirus and when the borders open again, the investers, who have been missing, will return."

To review the report click here.

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