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Beyond Sydney and Melbourne: Exploring Australia's Surging Regional Property Hotspots

Source: Corelogic


Australia’s housing market has been a tale of two speeds since the onset of the COVID-19 pandemic, showcasing both remarkable resilience and stark divergence across its capital cities and regional centers. According to the latest CoreLogic Pulse report, national home values have surged by an impressive 35.6% since March 2020, driven by a combination of low interest rates, demographic shifts, and varied supply-demand dynamics.


Beyond the headline figures, the Australian property landscape reveals a nuanced picture. Cities like Perth, Brisbane, and Adelaide have emerged as growth leaders, each experiencing increases in dwelling values exceeding 59%. These cities, which started from comparatively lower price points pre-pandemic, have benefited from strong local demand bolstered by favorable economic conditions and robust migration trends.


Perth, for example, has seen a remarkable 62.6% increase in home values since 2020, marking a significant recovery from previous downturns. The city's affordability relative to other major capitals has attracted both local buyers and interstate migrants seeking more affordable housing options. Similarly, Adelaide and Brisbane have leveraged their affordability and lifestyle appeal to sustain high levels of housing demand, supporting ongoing price growth.


Conversely, cities like Melbourne and Hobart have faced challenges in maintaining growth momentum. Melbourne, which saw home values increase by a modest 11.2%, has grappled with higher levels of housing supply relative to demand, resulting in subdued price growth. Hobart, despite a notable 28.4% increase in home values, has experienced fluctuations tied to its smaller market size and varying levels of investor activity.


The fundamental dynamics of supply and demand play a crucial role in shaping these regional variations. Markets with a higher sales-to-new-listings ratio, such as Brisbane and Perth, indicate strong selling conditions where buyer demand outstrips available housing supply. This imbalance often leads to competitive bidding and faster price appreciation, reinforcing market momentum.


In contrast, cities like Melbourne, where the sales-to-new-listings ratio is below parity, face challenges from an oversupply of housing stock relative to buyer demand. 



This imbalance has contributed to more moderate price growth and increased competition among sellers, particularly in suburban and outer-city markets experiencing higher inventory levels.


Interstate migration trends have further compounded these regional disparities. Queensland, for instance, has emerged as a magnet for interstate migrants, particularly from New South Wales and Victoria, driven by lifestyle preferences and economic opportunities. The state recorded a record net interstate migration of 51,517 people in the year to March 2022, underscoring its appeal as an alternative to more expensive southern capitals.



Investors and homebuyers alike should consider these regional nuances when navigating Australia's housing market. Markets offering a balance of affordability, economic resilience, and demographic growth are likely to present attractive opportunities for long-term investment. Understanding local supply-demand dynamics and migration trends will be crucial in identifying markets poised for sustainable growth and resilience in the face of future economic shifts.


In conclusion, Australia’s housing market continues to evolve, driven by a complex interplay of regional dynamics and macroeconomic factors. By staying informed about these trends and leveraging local market insights, stakeholders can make informed decisions that align with their investment goals and risk tolerance.


If you have any questions or need any information about Australian property, buying Australian property, selling property or looking for property management, you can leave a message or WhatsApp +61 481 988 806 to contact real estate expert, Entre Shield Property, we have the most professional sales consultants to answer any related questions for you!

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