Record-breaking sales push NT unit market to new heights
The Northern Territory (NT) property market finished strong in 2021 with record sales in the unit market propelled by ro...
A “regional renaissance” has fired up regional property values, with a spike of nearly 30 per cent in the year to September, exceeding growth in metro areas.
The REA Group’s PropTrack Regional Australia Report 2021 pointed to tight competition as the reason behind the price growth, with demand from prospective home buyers more than doubling in several regional locations.
Such growth has caused property supply in regions to reach almost historic lows, having dropped more than 30 per cent in the last year.
Furthermore, the pandemic has seen a change in people’s lifestyle, which boosted demand for bigger spaces and larger residences, and, in effect, inspiring people to opt for a sea change, a tree change, or a relocation to regional location because of the possibility to work from home.
According to Eleanor Creagh, PropTrack senior economist and report author:
“It appears that many ‘city skippers’ have sought out regions that remain on the outskirts of metropolitan areas, within a one to two hour commuting distance of major capitals. These commutable regions are seeing strong price growth, with new homebuyers taking advantage of both the ability to maintain office connections one or two days a week and the amenities provided by the regional lifestyle.”
Queensland remains popular among these “city skippers”, with the report naming Gold Coast and Coast as the most searched regional areas on realestate.com.au in the year to September 2021 and the most in-demand areas for buyers.
In fact, as residents attempted to avoid lockdowns, nearly three-quarters or 74 per cent of searches on realestate.com.au for houses in Queensland came from NSW and Victoria.
But they aren’t the only areas luring relocators.
Illawarra is attracting keen buyers, which has six of the top 10 suburbs with the most highly engaged buyers per listing hailing from the region.
The PropTrack report likewise unveiled the “regional stars”, or suburbs where prices are presently rising faster than the national average, which exhibited exceptional growth during the past 12 months to September:
Interestingly, data also showed that buyers are willing to pay a premium for property, with the majority of transactions exceeding 10 per cent above list price, especially so in Newcastle and Lake Macquarie in NSW, south-east of South Australia, Launceston and north-east Tasmania, and Geelong in Victoria.
As it stands, will the positive growth in Australia’s regional property market be sustained in 2022, or is it just a trend?
“The migration shift from metro to regional areas may remain high for some time, but begin falling back towards the long-run average as people begin to return to normal life,” Ms Creagh opined.
“Price growth in the regions is therefore likely to continue, but moderate from current levels. Already the pace of price growth is slowing across the broad market, and we expect that to continue with the peak of the current cycle now behind us.”
Property refers to either a tangible or intangible item that an individual or business has legal rights or ownership of, such as houses, cars, stocks or bond certificates.