Australia’s best-performing suburbs revealed

CoreLogic’s head of research, Tim Lawless, explained that major urban areas close to Sydney and Melbourne are currently showing strong signs of growth.

“The Illawarra region has recorded both the largest rise in housing values, as well as the biggest jump in home sales over the past 12 months, while Victoria’s Ballarat has shown the strongest selling conditions, with homes selling in just 30 days and with minimal discounting levels,” the researcher explained.

Unit investors off the mainland are seeing the strongest capital growth.

“Across the unit market, it is the Launceston and North East region of Tasmania that tops the tables, with unit values rising almost 15 per cent over the past 12 months,” Mr Lawless said.

Why are regional areas holding their value?

Mr Lawless explained that regional areas are outperforming the major capitals mainly due to migration impacting the larger cities over regional areas.

“Regional areas offer up a variety of advantages and risks compared with their capital city counterparts,” Mr Lawless said.

“On the positive side, housing prices tend to be lower, providing a more affordable entry point to the market; population densities are generally lower, which is something that might be even more appealing as we move through this pandemic, and in many examples, regional areas will offer some lifestyle advantages, either via the location’s proximity to the coastline or wide open spaces.”

However, investors are also being advised to carefully consider purchasing anything in regional areas due to higher risks.

“On the downside, regional economic conditions can be more volatile, especially those areas that are heavily dependent on a single industry for economic prosperity, and some areas may not show the same level of amenity and access to essential services as a capital city or major centre,” Mr Lawless concluded.