Regional market analysis shows that there is strength outside of capital city markets
Based on the Australian Bureau of Statistics latest Regional Population Growth figures, 67 per cent of Australia’s population resides in the capital cities. To put that further into perspective, Sydney and Melbourne are home to around 40 per cent of the population.
Given this, much of what is reported on in the market place revolves around these cities; however, this week CoreLogic RP Data released the Quarterly Regional Market Report, which focuses on some of the larger cities outside of the Australian capitals.
In the latest edition, eleven key areas are focused on;
- Newcastle & Lake Macquarie, Illawarra, Richmond-Tweed (NSW)
- Gold Coast, Sunshine Coast, Townsville, Wide Bay, Cairns (Qld)
- Geelong, Latrobe-Gippsland (Vic)
- Bunbury (WA)
Of the above regions, home values increased by the greatest amount across the Illawarra region which is around an hour and a half south of Sydney, up 9.3 per cent for houses and 9.6 per cent for units. Similarly, the Newcastle and Lake Macquarie region also saw solid results over the year, indicating that Sydney’s current strong growth phase is not just limited to the capital city.
Across Queensland’s lifestyle markets, the Gold Coast and Sunshine Coast, the performance of the housing market, in terms of value growth has been relatively strong over the year to March. Gold Coast home values were up 4.8 per cent and 3.9 per cent for houses and units respectively, while Sunshine Coast values increased by 6.3 per cent for houses and 4.7 per cent for units. These results are especially significant considering the lacklustre performance of these markets since the financial crisis, when both capital growth and sales volumes across these regions were declining. Similarly, after a downturn following the financial crisis, Cairns has shown some recent improvement across the residential housing market.
On the other hand, off the back of the slowing resources sector, some weakness was observed across Townsville’s residential property market, with house values falling by -2.4 per cent and unit values down -1.4 per cent. The number of homes sold across the region also fell over the most recent 12 month period.
Across Victoria, both the Geelong and Latrobe-Gippsland regions have shown positive growth across the housing markets over the year to March 2015. Latrobe-Gippsland home values have been rising since 2013 and the detached housing market is continuing to show steady growth.
Bunbury, in Western Australia has seen both house and unit values rise over the year, up 1.2 per cent for houses and rising slightly for units (0.4 per cent). Despite what may look like a subdued result, given Perth’s current soft market, the increases indicate a moderate level of housing demand in the region.