One of the largest regional analysis of its type now available in the market is the CoreLogic Regional Report. Produced quarterly, the regional analysis delivers market insights for houses and units across 25 of Australia’s largest non-capital city regions.
The current quarterly report to October 2019 revealed that of the separate 50 house and unit markets included in the analysis, more than half (29) have seen values rise over the 12 months to October.
Houses were the best performer over the year, with 16 of the regions analysed recording a rise in values while on the flipside, nine regional areas saw house values decline over the 12 months.
Across the unit market, the results showed a relatively even positive and negative growth spread over the past 12 months, with 13 regions recording a rise in unit values. Eleven regions saw a decline in unit values.
Best & Worst Regional Performers Snapshot - Houses
Mackay- Isaac- Whitsunday region in Tropical Northern Queensland delivered a stellar results and recorded an annual rate of growth at 5.9% in October 2019; making it the best performing house market across the 25 regional areas.
In New South Wales, houses in Illawarra performed in equal contrast with values down -5.9% over the same period.
- Sales volumes across most regions analysed have generally seen a much lower number of transactional activity this year relative to last with confidence clearly weighing down on market participation. Of note: even the regions with the highest change in sales activity recorded less than a 1.0% change annually; Bunbury in WA topped the list with an increase in house sales over the year of only 0.8%.
- Largest decline in House Sales: Latrobe-Gippsland in Victoria recorded the largest decline in house sales in October down -22.1% over the year.
- Days on market: saw a large gap between the quickest selling market and slowest selling market, with a difference of 68 days.
- Fastest selling market: Ballarat in Victoria where houses are taking just 33 days to sell. On the flipside, houses within the Southern Highlands & Shoalhaven region of NSW are sitting on the market for over 100 days.
- Vendor discounts: Central West (NSW) with the lowest discount rate of -4.0%, while in Townsville, vendors are offering discounts of -7.8% in order to secure a sale.
Best & Worst Performers Snapshot – Units:
The unit market recorded fewer regions with positive annual growth in October however included regions with some of the highest annual growth rates.
- Best Performing Unit Market: Launceston and North East region in Tasmania saw unit values rise by 10.7% in October, making it the best performing market across all 50 house and unit regions.
- Largest Decline: The most significant declines were seen across Western Australia’s Bunbury with unit values down 17.2% annually.
- Fastest Selling: Much like houses, units across Ballarat (Vic) currently sell quicker than any other region with the average unit selling in 30 days, with also the lowest discounting rates at -2.8% . While in New England & North West NSW, selling conditions are much more challenging with units taking around 112 days to sell.
- Largest discounts were seen across Central Queensland, where vendors are discounting units by -9.5%.
CoreLogic head of research Tim Lawless said, “Overall, our latest data points to an increase of value growth in regional markets, particularly those which are located adjacent to capital cities. As people are priced out of certain capital cities, buyers now appear to be looking to these adjacent regions.”
“Home owners in Sydney and Melbourne have seen a substantial rise in housing equity over recent years. Subsequently, we are seeing some evidence that these buyers are starting to look for holiday and investment properties in certain regional markets which is also providing an impetus for some of the value growth we are currently seeing.”