John McGrath - Top Performing Regional Areas

John McGrath

31/08/2020 | 3 MIN READ

The Illawarra on the NSW South Coast and Ballarat in regional Victoria are the East Coast’s top performing regional markets for the year, according to a new analysis from CoreLogic.

CoreLogic’s Regional Market Update, released in August, looks at the performance of 25 of Australia’s largest regional centres over the 12 months to July 2020.

Of those 25, 20 have recorded increases in house values, indicating that rising demand is pushing property prices north.

At a Glance:

Best performing region for house price growth was the Illawarra at 12 per cent
Ballarat recorded the shortest days on market at 30 days and the lowest rate of vendor discounting on house prices at -2.4 per cent
In Queensland the best performing regional markets were the Gold Coast and Sunshine Coast
On a national level, the best performing region for house price growth was the Illawarra at 12 per cent over the 12 months to July 2020.

The median house price is now $704,498.

The data also showed a 14 per cent increase in sales volume, which was the highest change nationally.

Ballarat was another top performer based on different measures.

It recorded the shortest days on market at 30 days and the lowest rate of vendor discounting on house prices at -2.4 per cent of all 25 regional areas analysed.

It was second to Geelong in terms of house price growth, as well.

Let’s take a closer look at the best performing regional areas on the East Coast.

NSW

Second to the Illawarra for best house price growth was the Newcastle and Lake Macquarie region, where house values rose 8 per cent to a median $588,558.

Next was the Richmond-Tweed area, which experienced a 4.5 per cent increase to a median value of $626,534.

This region incorporates the ever-popular Byron Bay, Ballina, Tweed Heads and Lismore.

On the Mid North Coast, house values increased by 4.1 per cent to a median $475,523. This area incorporates Port Macquarie, Taree and Forster.

In the Capital region, which incorporates Jindabyne, Goulburn and popular South Coast centres such as Batemans Bay, Bega and Braidwood, house values rose 3.8 per cent over the year to a median $481,718.

In the Southern Highlands and Shoalhaven region, which incorporates Mittagong, Berry, Sussex Inlet and Ulladulla on the NSW South Coast, house values grew modestly by 3.2 per cent to $590,042 but the number of local sales increased significantly by 12.7 per cent, the second highest increase nationally.

Victoria

Geelong had the highest growth in house values at 5.4% to a median price of $616,716. Ballarat was second at 4.7% to a median $447,485.

Ballarat and Geelong are major growth centres in Victoria. They are great satellite cities to Melbourne and many families are relocating there for lifestyle and affordability.

The commute back to Melbourne has been improved with train service upgrades and job opportunities are growing due to business and government investment.

One of the biggest initiatives in Ballarat is the $47.8 million construction of the new GovHub, which is due for completion early next year. This is an important project that has created 500 jobs already in the construction process.

It will help revitalise the Ballarat CBD and employ up to 1,000 people, with about 600 existing public service positions in Melbourne to be relocated here. This will bring population growth and/or job opportunities for locals should existing city-based employees choose not to relocate.

Third in line for house price growth amongst Victorian regional centres was the Latrobe-Gippsland region, up 3.4% to a median $398,752.

Queensland

The best performing regional markets were the Gold Coast, where house prices increased by an impressive 8.6 per cent to a median value of $660,601; and the Sunshine Coast, where house prices increased by 8.1 per cent to $668,361.

The Mackay-Isaac-Whitsunday region also recorded good growth at 4.1 per cent to a median $332,236.

Sales here were up 12.2 per cent with 2,665 properties sold, which was well above the five year average.

There is no doubt that demand in Australia’s best regional areas is being propelled by the new work from home trend brought about by COVID-19.

Temporary work from home arrangements during the national lockdown earlier this year have become permanent for many employees due to the success of this forced workplace experiment.

This is allowing more people to consider a relaxed and more affordable life outside the capital cities.

The views expressed in this article are an opinion only and readers should rely on their independent advice in relation to such matters.

This article originally appeared in The Real Estate Conversation (August 31, 2020)