The 12 months to the end of March 2016 saw a decline in both the number and value of residential properties sold, according to a recent analysis of the country’s property market.
The analysis from CoreLogic shows that in the year to March 2016, 467,993 dwellings were sold across Australia, 6.7% less than the number sold over the previous 12-month period.
Those sales were worth a combined value of $281.2bn, which was 2% lower than the total value of all dwellings sold in the 12 months to March 2015.
While the 12-month period saw a nation-wide decline, it wasn’t felt evenly across all markets, with figures showing regional areas out-preformed their capital city counterpart.
“The difference in sales volumes and the value of sales between capital city and regional markets highlights that regional housing markets are starting to show an improving trend,” CoreLogic research analyst Cameron Kusher said.
“Over the year there were 301,776 capital city dwelling sales worth $213.3bn; the number of sales was -9.9% lower than a year ago and the value of sales was -0.3% lower over the year,” he said.
“In terms of the combined regional markets, there were 166,217 sales which was -0.3% lower over the year while the value of these sales rose by 3.3% to $67.9bn.”
Across the 50 local government areas (LGAs) that saw the largest increase in the value of sales over the 12 months, only four were located in capital cities.
Narrendera LGA, in NSW’s central west, saw the largest increase in total sales values, with a 90.3% increase to $32.5m from $17m in the year to March. The number of sales in the Narrendera LGA increased to 53.9%.
Kyogle LGA, in NSW’s north, was the next best performer in terms of total sales value increases, up 79.1% to $52.9m to $29.55m over the year, while total sales numbers rose 65.3%.
Grant LGA in the south-east of South Australia took third place in terms of value increases, with $41.2m worth of dwellings selling in the year to March, up 61.4% to $25.5m over the prior year. The total number of sales in the Grant LGA rose 35%.
Kusher said the current trend for regional areas would likely continue as affordability issues continue to push investors out from capital cities.
“With mortgage rates low, certain capital city housing markets becoming unaffordable and an improvement in confidence surrounding regional housing, we would expect many of these council areas to see further increases in the total value of sales over the coming year.”
In terms of total distribution, 31 of the 50 LGAs that saw the largest increase in sales values were in NSW, while eight were located in Queensland.
There were five in both South Australia and Victoria and one in Tasmania.
In terms of sales numbers only three of the top-50 saw a fall in total sales over the year, which CoreLogic indicates that both dwelling values and demand are increasing.
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