AUSTRALIA’S RELATIONSHIP WITH THE REGIONS; ETERNAL LOVE OF FLEETING AFFAIR?

More space, flexible working conditions and affordability has successfully tempted property buyers to Australia’s regional areas, fuelling a surge in property values and drastically reducing selling times.

CoreLogic’s quarterly Regional Market Update, released today, shows Australia’s 25 largest non-capital city regions continued to achieve unprecedented increases in value. Over the 12 months to January 2022, 24 regions recorded double-digit annual growth for houses, with 18 regions notching up gains in excess of 20%.

The median dwelling value across the combined regions jumped 26.1% in the year to January 2022, outpacing the combined capital city dwelling growth rate of 21.3% for the same period.  

CoreLogic’s Head of Research Eliza Owen says this trend had maintained momentum for almost two years and the question on its permanency and likely longevity was becoming more common.

“Timing any shift in the housing market can be very difficult. Generally, a downswing in property values is fairly broad based across both capital cities and regions and it’s common for the two markets to roughly perform in line with each other,” she says. 

“Through the 2010s for example, there appeared to be a lead-lag relationship between capital city and regional housing market performance by three to six months. Through the current cycle, capital city markets hit their peak growth rates in April 2021, so if we were to assume the long-term property cycle relationship still holds, regional dwelling market growth rates would have started to slow in late 2021.


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