If you thought that Australian property markets were all doom and gloom, think again. Double-digit price growth was produced for one in every eight locations across Australia over the last 12 months and the majority were outside of the capital city markets.
According to research conducted by Propertyology, the median house price increased by 10 per cent or better in 12 per cent of Australia over the year ending April 2018.
The property markets of 550 city councils spread across our 8 states and territories is akin to the stock exchange for Australia’s property markets. 67 out of 550 had double-digit growth.
The property markets of 16 out of Greater-Melbourne’s 31 city councils produced double-digit price growth. These were predominantly in the outer parts of Melbourne where housing is more affordable. Hume (25%), Whittlesea (23%), Cardinia (21%), Nillumbik and Casey (both 19 per cent) were the biggest winners.
Interestingly, 45 of the 67 locations that produced double-digit price growth are located outside of Australia’s 8 capital cities.
24 of the 27 locations in New South Wales where the median house price grew by more than 10 per cent last year are in the regions.
The median house price in Uralla in regional New South Wales increased by 24.1 per cent last year. A typical house in the New England region is still an affordable $367,000. In the Hunter Valley, the median house price in Muswellbrook increased by 10.7 per cent.
Propertyology been saying for quite some time that the outlook for many parts of regional Australia is increasingly better than most capital city markets.
Employment growth in some of Australia’s regions is strong, especially in tourism, health, agriculture and specialised manufacturing. The mining sector is also showing a strong recovery.
Victoria had the biggest representation of double-digit price growth with 28 locations, of which 12 were regional locations.
Tasmania had 7 locations; 4 of these are within Greater-Hobart, currently Australia’s hottest property market.
The Tasmanian regional location of Dorset produced 20 per cent price growth over the last 12 months and the median house price is still only $220,000.
South Australia was also well represented with 3 of its 4 locations also in the regions.
The median house price in Roebourne (Karratha) in Western Australia increased by 13.5 per cent while Queensland didn’t have any locations on the list of double-digit growth.
Capital city or regional locations, property markets don’t produce double-digit growth very often. Several capital cities still haven’t seen it since before the GFC.
The strongest growth cycle unfolding right now is in strategically-chosen regional locations.
The Asian Century is real, it’s having a positive impact in key industries and this is flowing through to certain property markets, including regional Australia. The opportunities are significant, and we are only nineteen years in to it.
Local confidence and job growth increases demand for housing. Propertyology’s buyers agents have already seen the positivity within regional communities flow through to property prices.
The research also shows that 45 of the 67 city councils with double-digit price growth still have a median house price below $600,000.
Regional Australia has housing affordability in spades. The median house price is still under $350,000 in strong growth locations such as Berri, Cooma-Monaro, Coffs Harbour, Forbes, Lithgow, Launceston, and Port Augusta.
In addition to significantly improved economic conditions, regional locations are attracting migration from people moving away from capital cities.
The population of regional Australia increased by 77,740 people over the 2017 financial year. That’s comparable to a city the size of Port Macquarie – Australia’s 29th largest city – in just one year.
In addition to the 67 city councils where the median house price increased by at least 10 per cent, another 64 locations increased by 7.2 per cent or more. 7.2 per cent is the average growth rate required for an asset to double in value over 10 years.
Double-Digit Price Growth [YE April 2018][table “” not found /]
SOURCE: CoreLogic. Analysis of Australia’s 550 city councils as at end of April 2018 (more than 100 dwellings sold over 12 months)
Propertyology is a Brisbane-based buyers agency and (national) property market research firm. We help everyday people to invest in strategically-chosen locations all over Australia. Testament to our multi-award-winning success is Propertyology’s expertise in being the only company in Australia to forecast Hobart’s remarkable resurgence and begin investing there in mid-2014, before the boom. Now, while others fight like seagulls over a chip to get in to that market, our buyer’s agents are actively investing in a few other locations that resemble what Hobart looked like in 2014. Like to know more? Contact us here.