Housing values across Australia’s capital cities have been plummeting and slowing down since the past year. Now that the media keeps a closer look at it, people often forget how other regions perform.
In fact, several regions are actually recording sustainable growth. We’ll break down the top 10 well-performing areas with a consistent and healthy growth rate.
The latest data indicate that roughly half of Australia’s sub-regions showed sustainable property value growth in the past year. These areas are officially called SA4 sub-regions which house around 100,000 to 500,000 residents.
Half of these sub-regions reached record-high annual capital gains relative to their five-year average growth rate. That implies a rising property market and improving supply-demand conditions in these areas.
Which Areas Are Hot?
If you’re up for regions with healthy price rates, you should look into regional areas. That’s because 57% of Australian regional areas hiked in housing values within 12 months, compared to 39% of capital city suburbs.
10 regions with the highest growth rates that outperformed their five-year averages are as follows:
- Geelong, Victoria: 11.8% (value growth compared to five-year average)
- Hobart, Tasmania: 10.7%
- South East, Tasmania: 9.9%
- Launceston and North East, Tasmania: 9.3%
- Ballarat, Victoria: 7.1%
- Central West, NSW: 6.1%
- Sunshine Coast, Queensland: 6.0%
- South Australia Outback, SA: 5.8%
- Latrobe – Gippsland, Victoria: 5.3%
- Northern Territory Outback: NT, 5.3%
Why are Regional Areas More Sustainable?
The following factors typically drive demand to regional markets:
Sustainable Market Growth Conditions: Regional areas usually offer calmer market conditions than Melbourne and Sydney’s glamorous and competitive gains. However, historical data on sustainable price growth in regions keep properties affordable, making them attractive to home buyers and migrants.
Ripple Effect on Capitals: Massive demand across capital cities creates ripples on outskirts and sub-regions where prices are more affordable and laid-back lifestyle is more appealing.
Market Seachange: Coastal sub-regions and markets that highlight lifestyle factors benefit from increasing buyer demand. That includes looking for a new property, a rest/second house, or a real estate investment.
Bounceback and Recovery: Several mining regions in Australia are now recovering and showing sustainable and healthy housing price growth.
Some Capitals Still Show Growth
A few exceptions from capital cities made it on our list. That includes Adelaide and Brisbane, where up to 75% of their respective sub-regions indicated a net positive in value growth.
As a special mention, Hobart also landed a second place on our list with a staggering 10.7% housing price growth. That’s because while capital cities experience a slowdown in rates, historical data across the country still indicate sustainable growth rates, fueling demand and economy for the property market.
Check Your Area’s Growth by Speaking With Us Today
Are you looking to crack the property market or expand your real estate portfolio? If so, then get in touch with us today.
We’ll gladly help you realise your dream home and source a reliable residential loan that works for you in the long run. Speak with us today, and we’ll take you through different finance options depending on your financial circumstances.
This article presents content in a general nature and is solely for informative purposes only. It does not aim to provide public nor personal financial or tax advice. It does not include nor put into consideration your unique situation or circumstances. Before taking an active decision, seek expert advice and thoroughly examine your current position. Moreover, this article is protected by intellectual property and copyright laws and should not be reproduced without prior written consent.