The expected downturn in prices following the surge in mortgage rates has already come upon the housing market, but while many would think it will not spare any location, it appears some regional areas are still holding up, maintaining their popularity among sea- and tree-changers.
According to Domain’s latest data, house prices in many regional areas across Australia are still substantially higher than a year ago.
On top of this, around 92% of regional local government areas even witnessed growth over the last quarter of 2022.
Domain chief of research and economics Dr Nicola Powell said while the pandemic-induced boom already dissipated, some of the gains recorded over the period were able to cushion the impact of the current downturn.
“The regional housing boom is starting to lose steam after interest rate rises but it’s still a great time for homeowners looking to sell — most regional markets have hit their peak and will experience a slowdown in the annual change,” she said.
“But many of these regions are unlikely to head back to pre-COVID prices given that the areas are still more affordable than houses in the capitals.”
|
Growth in median regional house prices – December 2022 |
|||
|
Regional Area |
Median House Price ($) |
Quarterly Change (%) |
Annual Change (%) |
|
New South Wales |
720,000 |
0.70 |
1.40 |
|
Victoria |
585,000 |
1.70 |
1.70 |
|
Queensland |
475,000 |
0.00 |
6.30 |
|
South Australia |
379,500 |
5.40 |
16.80 |
|
Western Australia |
430,000 |
1.70 |
7.50 |
|
Overall |
566,732 |
1.00 |
3.60 |
Dr Powell said the work-from-home trend continues to fuel the demand for homes in the regions.
“While the price looks different to a local, someone from the city will be drawn to the area because the median price is considerably lower,” she said.
“That said, some regional areas that boomed earlier in the pandemic are expectedly leading the regional downturn such as popular holiday spots.”
Top regional market performers
Over the last quarter of 2022, some regional areas in each state posted significant double-digit annual gains.
New South Wales
The skyrocketing house prices in Sydney compelled many homebuyers to relocate to “get more bang for their buck”, on top of the various schemes available in the state like the Regional First Home Buyer Guarantee, and the new financial packages.
|
NSW Top Regional Market Performers – December 2022 |
||
|
Area |
Median House Price ($) |
Annual Change (%) |
|
Glen Innes Severn Shire |
340,000 |
30.8 |
|
Armidale Regional |
520,000 |
29.6 |
|
Upper Hunter |
455,000 |
22.0 |
|
Edward River |
352,500 |
21.6 |
|
Yass Valley |
874,520 |
21.4 |
Victoria
The COVID-induced work-from-home trend also increased the popularity of these regional markets in Victoria. Four of the five top-performing suburbs have a median price of around $500,000 and below.
|
Victoria’s Top Regional Market Performers – December 2022 |
||
|
Area |
Median House Price ($) |
Annual Change (%) |
|
Hindmarsh |
205,375 |
31.2 |
|
Murrindindi |
800,000 |
30.0 |
|
Gannawarra |
310,000 |
24.0 |
|
Wodonga |
545,000 |
18.5 |
|
Corangamite |
440,000 |
15.0 |
Queensland
Somerset is a standout in Queensland after it was able to almost double its growth in median house price over the past five years.
|
Queensland’s Top Regional Market Performers – December 2022 |
||
|
Area |
Median House Price ($) |
Annual Change (%) |
|
Somerset |
502,000 |
28.7 |
|
South Burnett |
335,000 |
26.4 |
|
Southern Downs |
390,000 |
22.5 |
|
Bundaberg |
445,000 |
21.9 |
|
Livingstone |
601,500 |
20.6 |
South Australia
Naracoorte Lucindale witnessed the biggest annual change in median house prices among all regional markets in South Australia. Sitting on the edge of the Limestone Coast, this region is very popular for homebuyers who want adventure and nature activities.
|
South Australia’s Top Regional Market Performers – December 2022 |
||
|
Area |
Median House Price ($) |
Annual Change (%) |
|
Naracoorte Lucindale |
325,000 |
38.3 |
|
Yankalilla |
616,000 |
32.2 |
|
Port Pirie |
220,000 |
29.8 |
|
Loxton Waikerie |
350,000 |
29.6 |
|
Adelaide Plains |
535,000 |
27.4 |
Western Australia
One notable region in Western Australia is The Shire of Toodyay — it continues to be the go-to destination of homebuyers from Perth who are seeking an alternative semi-rural lifestyle.
|
Western Australia’s Top Regional Market Performers – December 2022 |
||
|
Area |
Median House Price ($) |
Annual Change (%) |
|
Toodyay |
500,000 |
22.0 |
|
Augusta-Margaret River |
700,000 |
17.2 |
|
Busselton |
663,500 |
16.4 |
|
Collie |
267,500 |
16.3 |
|
Capel |
475,000 |
13.1 |
—
Photo by: Tourism Australia on Canva
Data Source: Domain
