John McGrath – Unprecedented price growth in East Coast regional markets set to continue
House price growth in some of Australia’s largest regional centres has soared beyond that of our biggest capital cities, as the pandemic and working from home continues to inspire more city dwellers to make a lifestyle change to the regions, according to new CoreLogic data.
Treechanging and seachanging were huge trends in 2021 and this continues today. Now that so many people can work from home permanently, typical long term trends in Australian real estate have changed – at least for now. Specifically, it’s rare to see the regions outpacing the cities, and not only this, we’re also talking about unprecedented annual growth rates of up to 40%, too.
In its quarterly Regional Market Update released this month, CoreLogic canvassed 25 of Australia’s largest non-capital city regions and the results for the 12 months to January 2022 are staggering.
Of these regions, 24 out of 25 recorded house price gains above 10% and 18 achieved 20%-plus.
Australia’s top performing region was the Southern Highlands and Shoalhaven in NSW, where house prices went up by 38.2%. By comparison, Sydney house prices went up by 29.8% over the same time period.
Next was the Gold Coast (36.3%) and Sunshine Coast (35.4%). By comparison, Brisbane house prices went up by an equally impressive 32.3%.
Here are Australia’s top 10 performing regions
- Southern Highlands and Shoalhaven (NSW) 38.2%
- Gold Coast (QLD) 36.3%
- Sunshine Coast (QLD) 35.4%
- Hunter Valley ex Newcastle (NSW) 35.3%
- Launceston and North-East (TAS) 33.6%
- Newcastle and Lake Macquarie (NSW) 32.4%
- Central West (NSW) 31.9%
- Illawarra (NSW) 31.5%
- Richmond – Tweed (NSW) 30.8%
- Mid North Coast (NSW) 30.7%
In Australia’s apartment market, the top performing region was Launceston and North-East Tasmania with a 33.9% bump in values, largely driven by mainland downsizers making a lifestyle change. By comparison, Hobart apartments rose by 32.8%.
Next best was Sunshine Coast apartments with a 31.1% increase, more than double the price growth of Brisbane apartments at 13.8%.
High demand in many coastal and country hot spots is clearly evident, and I continue to hear many stories of incredible sales results from our agents, particularly in regional NSW and Victoria.
If you’re looking to make a seachange or treechange on the East Coast, maybe I can help you choose a location. As discussed in our McGrath Report 2022, here are my top regional suburb picks for each of the four East Coast states.
NSW – Booker Bay, Central Coast
Charming, secluded and neighbouring Ettalong. Just 0.5 sq km, this tiny peninsula suburb has great pizza and its own village cinema. What’s not to love!
Victoria – Ballarat
The state’s third-largest city, Ballarat was one of Australia’s biggest gold rush towns in the mid-1800s. It’s 90 minutes from Melbourne, has a range of affordable housing options, and lots of jobs.
Queensland – Bonogin, Gold Coast
A rural retreat for families who love the great outdoors with horse stables, dirt bike trails and bush walking tracks. It’s a close-knit community with a quaint local village in the Gold Coast hinterland.
Queensland – Currimundi, Sunshine Coast
Currimundi’s patrolled beach is popular amongst locals who prefer its laidback vibe devoid of the holiday crowds of nearby Caloundra. There’s a beautiful lake and conservation park and the suburb is set to benefit from major infrastructure upgrades, including the nearby Sunshine Coast University Hospital.
Tasmania – Glen Huon
With rolling hills and pastures, 45 minutes south of Hobart, the Glen Huon is a picture of tranquillity, with residential lifestyle blocks untouched by subdivisions and new housing.
Tasmania – Invermay, Launceston
Walking distance to UTAS Stadium and less than five minutes to the CBD, Invermay will be a future hive of activity. A $344 million University of Tasmania Inveresk campus is under construction and due for completion in 2024.
Tasmania – South Launceston
On the city fringe, it has easy access to buses, local shops and the Launceston General Hospital and is home to the popular Charles Street café strip.
I think Australia’s best regional areas will continue to benefit from the great regional relocation currently underway. The new norm of working from home will continue to inspire many people to leave the cities for a change of lifestyle and cheaper housing in our beautiful regions.