There's no doubt that everyone's buying property. This is something we've seen develop into full fruition, especially in the last 12 months. Various buyers have taken to the Australian property market to claim their piece of the Great Australian Dream.
In the last year, the Ausralian property market has experienced a whirlwind of unseen events. The trends that we've seen in this space have been phenomenal. In such a short amount of time, property prices have been subject to such dramatic increases. Now, with the demand for those buying property so high, the supply sits at an alarming low.
For conventional puposes, people have looked at buying property in inner-city and suburban locations. Though, this is a trend that has fast changed as people have increased interest in the regional markets.
In this article, we're going to explore the increasing prices and high demand for property throughout regional Australia.
Regional Property Price Increases
Regional markets have experienced significant price increases in the last 12 months..
In August, CoreLogic released their Home Value Index. As at July 31st 2021, combined, regional markets experienced a 12 month increase of 19.6% to property values.
This figure was interestingly higher than the national average for capital cities, which saw a 15.1% increase.
The change in dwelling values across regional markets for each state was also listed in this CoreLogic report. Regional Australian housing markets throughout New South Wales, Tasmania and Queensland experienced the greatest growth of; 22.9%, 22.61% and 19.0%, respectively. However, locations throughout Western Australia and South Australia experienced slightly lower growth.
Demand Not Meeting Supply
Across the board, the undersupply of properties in Australia is not meeting the high demand. In fact, Michael Yardney has stated in his weekly Property Update report that for every property coming onto the market, 1.4 properties are bring sold. This shortage is resulting in the discussed uplift to property prices.
Additionally, while low sales activity is being reported throughout capital cities, the same can be said for regional markets. In July REA Insights recorded a 2.5% decline in property listings throughout Australia's regional markets. Excluding the Northern Territory, the total number of listings in these markets are at record lows.
The demand for regional properties have been from both real estate investors and owner-occupiers alike. The shift in preference from capital city to regional living predominantly occurred throughout the pandemic last year and has continued.
According to Tim Lawless from CoreLogic, "this can partly be explained by the new popularity of remote and flexible working arrangements, but also the increased demand for lifestyle-oriented properties and holiday homes."
The low supply has been even more noticeable in regional coastal and lifestyle markets. It's understood that pretty much anything within three hours of a capital city has experienced massive growth conditions.
How We Can Help
If you're a real estate investor or owner-occupier interested with buying property in regional locations, we can help. Here at REIF, we have a specialised team of professionals who are researching emerging markets that are ideal for house and land packages. With low vacancies and a high demand of supply for rentals, it's the perfect time to invest and take advantage of the current market.
To learn more, please feel free to reach out on the details provided. We're always happy to help!
Ph: 1300 130 932
Email: clientservices@reif.com.au
