Victoria and Tasmania dominated the list of regions that recorded the largest value growths, while New South Wales (NSW) recorded the most value declines over the past year.
Investors in regions with the biggest value increase stand to gain the most. On the other hand, losses are expected from investments in regions with value declines.
According to CoreLogic’s recent Property Pulse, over the 12 months leading to November, only 15 Statistical Area 3 (SA3) regions nationally have posted double-digit value growth, with 10 of the 15 in Tasmania. Victoria accounted for three of the 15, and New South Wales and Queensland had one each.
Only 48 SA3 regions logged value growth of at least 5% over the past year, implying that only 14.3% of SA3 regions generated 5% or more dwelling value hikes during the period.
The South East Coast of Tasmania was named the region with the strongest value growth over the past year. Across the region, dwelling values rose by 16.3%. On top of this, it was the only SA3 region nationally whose values grew by over 15% throughout the previous year.
The research also revealed that the top areas for value growth were mostly regional areas, rather than capital cities. This result can be explained by the fact that the cooling value growth conditions across the nation hurt capital city markets the most.
On the other hand, 23 SA3 regions nationally recorded double-digit value falls – higher than the number of regions with double-digit value increases.
Data showed that 55.7% of all SA3 regions posted value drops, with New South Wales leading the downward shift. Twenty-eight spots in the top 50 regions for value declines were located in Sydney, while the regions of Victoria, Queensland, Western Australia, and Northern Territory also appear in the list.
The Outback-South region of Queensland recorded the largest decline in values, down by 15.6%. It was also the only region whose values have dipped by more than 15% over the past year. The Outback-South region is home to the major towns of Longreach, Charleville, and Cunnamulla.
CoreLogic said while drastic declines, especially in Sydney market, are likely to discontinue at the same pace, the housing market will still experience falls in 2019.
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