Regional property markets are outpacing larger cities in house price growth. Regional property markets recorded an average of 3.4% median house price growth in the 12 months to June this year, effectively triple the growth of the nation’s capital city markets for the period. Capital city markets recorded the least growth with a 1% uptick for the period, according to the Australian and Economic Property Report released by PRD.
PRD Real Estate chief economist Dr Diaswati Mardiasmo says regional markets were slightly more insulated from economic shocks in the face of COVID-19, with less reliance on international trade and a more affordable housing market.
The biggest house price growth was in regional Tasmania and New South Wales, which saw a 9.8% and 5.3% growth over the 12 months to the first half of 2020. Regional Victoria followed closely behind, with 4.4% growth, and regional Northern Territory at 2.2%.
Australia’s capital city markets recorded an average 1% median house price growth over the 12 months to June 2020. For context, national capital city price growth for the same year prior, clocked up an average of 6.7%. This is a pretty dramatic fall, much of which has been attributed to COVID-19.
But Mardiasmo says capital city markets fared better than expected, with growth led by Melbourne, Sydney, and Hobart.
“Capital city markets did experience the most tumultuous ride throughout COVID-19, however they held value and finished on a balance, recording an average of 1 per cent median house price growth in the 12 months to the first half of 2020,” she said.