Regional markets in NSW, Victoria and Queensland are showing signs of catching up to the strong performance of their capital city neighbours, according to a new report.
CoreLogic RP Data’s Quarterly Regional Property Report shows that property prices in many areas are rising solidly, thanks to the ripple effect from robust activity in the capital city markets and the current low interest rate environment.
CoreLogic researcher Cameron Kusher said the prospect for regional markets in the East Coast is good, however, rising levels of unemployment remains a challenge. He points out that areas with less diversified economies would suffer the most.
Nevertheless, with mortgage rates tipped to stay low and the Aussie dollar set to fall, property is becoming attractive to buyers, which Kusher believe would trigger further growth in the future.
Below are the highlights of the recent CoreLogic RP Data analysis:
New South Wales:
Newcastle & Lake Macquarie
- Sales volumes improved but still well below levels seen during market peak in the early 2000’s.
- Current sales activity is 5% above the five year average.
- Home values across the region rose 7.2% for houses and 5.8% for units.
- Houses are selling an average of 12 days faster and 13 days faster for units compared to a year ago.
Richmond – Tweed
- Sales activity currently sitting 7% above the five year average
- Median house values climbed 8.2% over the 12 months to December 2014
- Unit values rose 8%.
- Vendor discounting levels and average time on market both improved.
- Sales volumes rose 12% compared to the previous year
- Detached house values rose moderately by 2.9% during the past 12 months, compared to a 3.7% rise across the unit market.
- House values rose 5.2% over the year ending December 2014
- Unit values increased by a lower 4.7%.
- The number of units sold rose 5% over the 12 months to November 2014, while house sales increased by 7%.
- Gold Coast homes currently selling faster than they were one year ago
- Average time on market for houses dropped from 85 days in November 2013 to 73 days in November 2014 and units are selling in 92 days, compared to 105 days the previous year.
- Values rising since mid-2013.
- Over the 12 months to December 2014, house values rose by 6.7%, while unit values increased by 6%.
- Sunshine Coast increased by 9% over the year.
- Vendor discounting rates improved over year, with houses discounted by -5.9% from the initial list price
- Home values increased by 0.5% for houses and 3.8% for units over the year to December 2014.
- Sales volumes currently 3% higher than the five-year average.
- On average, homes across the region are taking upwards of three months to sell.
- Number of homes sold was 5% higher over the 12 month period.
- House sales 1% higher over the period & unit sales were up 12% year-on-year.
- Home values increased over the year, up 5.8% for houses and 3.0% for units
- Since December 2009, house values rose by only 1.2% and unit values have fallen by -6.9%.
- Rental yields fell slightly over the 12 months to December
- Overall weakness experienced over the past year across the Townsville market.
- Values have fallen by -2.2% for houses and -0.7% for units, while sales volumes have seen an overall fall of -9%.
Latrobe – Gippsland:
- Home values rose 5.9% for houses and 0.8% for units over the 12 month period to December 2014.
- Advertised weekly rental rate for houses rose by 1.5% over the 12 months to December 2014 - unit rents remained unchanged.
- Homes sales fell -7% over the 12 months to November 2014.
- Homes are taking a long time to sell currently, 118 days for houses and 122 days for units
- Days on market for houses dropped to 118 days from 121 days compared to a year ago.
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