With the prospect of paying at least $1 million for a home in many of Australia’s capital cities, buyers are once again looking to escape to the country.
The regional property market surged in the three months to January, outpacing the capitals, according to figures from data firm Cotality released on Wednesday.
Dwelling values rose 3.2 per cent for the quarter in regional areas, compared to 2.1 per cent in the combined capitals.
Competitive market conditions in the cities, poor housing affordability and a boost in internal migration sent buyers packing for the country long after COVID-19 lockdowns sparked the initial migration trend.
“With capital city prices still near record highs and stock levels tight, many households are once again looking to regional Australia for greater value and livability,” the firm’s head of research Gerard Burg said.
“We’re seeing momentum build across a wide range of regional markets, from inland hubs to coastal centres and mining-adjacent regions.
“This reflects a renewed movement of people and capital into areas where buyers’ budgets stretch further and competition for available homes is strong.”
Sydney’s median home value sat at $1.23 million in January, followed by Brisbane at $1.02 million, with Perth and Adelaide tipping over $900,000, according to a PropTrack report released on February 2.
Compared to those cities’ prices, many of the fastest-growing regions can offer only modest housing affordability relief, if any.
Queensland’s Sunshine Coast had a median value of more than $1.2 million in January, with weekly rents at $832, Cotality’s data showed.
Geelong, a Victorian port city and hotspot for Melbourne escapees, had a median value of $771,298, with rents at $558.
The NSW Hunter region has long been one of the fastest-growing areas in Australia, with a median of $956,142 and rents at $698 in Newcastle-Maitland.
The market report showed Wagga Wagga, in southern NSW, experienced the highest growth in value at 8.1 per cent for the quarter.
The median value in the regional city was $665,062 in January.
Regional Western Australia had the strongest growth among the states, with values rising 6.1 per cent, up from 4.9 per cent.
Albany, a coastal city on the state’s southern tip, experienced a value hike of 7.7 per cent, with a median value of $783,389.
Queensland and South Australia’s markets also grew, while regional NSW and Victoria only shifted slightly.
Small local market declines were recorded in the Bowral, Mittagong and Bateman’s Bay regions in southern NSW, and in Warrnambool on Victoria’s Great Ocean Road.
A renewed focus on the regions is not good news for all locals, as low rental vacancy rates are met with rapidly increasing rents.
Regional rent growth was slightly above the capitals at 1.6 per cent, compared to 1.4 per cent.
Rents outside the cities have risen by almost 42 per cent in the past five years, well ahead of wage growth at 17.5 per cent.