Regional property prices grow at double capital city rates

Price growth is strongest in coastal and lifestyle markets, CoreLogic said. Picture: Shutterstock
Price growth is strongest in coastal and lifestyle markets, CoreLogic said. Picture: Shutterstock

Property price growth has accelerated in regional Australia in the last month, with dwelling values increasing at twice the rate of capital city markets.

The latest CoreLogic figures show that dwelling prices in combined regional markets grew by 2.2 per cent during the month of November, compared to 1.1 per cent in capital cities.

Despite talk of a slowdown in the property market, monthly price growth has actually been accelerating in regional areas in each of the past three months - up from 1.87 per cent in October.

The growth trend was strongest in Regional Tasmania, up 2.5 per cent in November and 29.8 per cent over the year, and regional NSW, up 2.4 per cent and 29.1 per cent respectively.

In regional Victoria, growth was strongest in the Hume and Warrnambool and South West regions, where values were up 2.9 per cent and 2.7 per cent respectively during November.

The situation in regional Australia contrasted with that the capital city markets, which were slowing due to a variety of factors, according to CoreLogic research director Tim Lawless.

"Virtually every factor that has driven housing values higher has lost some potency over recent months," Mr Lawless said.

"Fixed mortgage rates are rising, higher listings are taking some urgency away from buyers, affordability has become a more substantial barrier to entry and credit is less available."

Quarterly figures strongest in 'lifestyle' markets

Price figures in the three months to November 31 revealed a continuation of the growth trend in coastal and lifestyle markets, CoreLogic reported.

The Southern Highlands and Shoalhaven region in NSW recorded the highest growth, at 9.7.

It was followed by the Hunter Valley (excluding Newcastle), on 8.9 per cent, and the Launceston and North East region in Tasmania, on 7.7 per cent.

This story Regional property prices grow at double capital city rates first appeared on Illawarra Mercury.