We’re only a month into the new year, but it’s been a strong start in regional property markets. This continues its strong performance in 2021, where median prices in regional areas increased at a faster rate than those at the city.
Read on to find out everything you need to know.
Regional property price growth
Prices in property markets in regional areas across Australia are still rising faster than those in city markets. According to CoreLogic, average property prices in regional areas have risen by 6.3% over the past three months, which is more than double the average price increase in city property markets.
The Hunter Valley has been leading the charge over the past year, with prices increasing by 34 per cent. Regional areas like the Hunter Valley are attractive for property buyers because:
- their properties are cheaper,
- there are lifestyle benefits of living away from major capital cities, and
- they are still within commuting distance to capital cities.
House demand outstripping apartment demand
Demand for houses is also stronger than demand for apartments, increasing the price gap between the two. Houses are now nearly 30% more expensive than apartments across Australia.
The median price for a house in regional Australia is now just over 0,000 (an increase of just over 26% over the last year), while it’s just over 0,000 in Australia’s capital cities (an increase of just over 21%).
Of course, Sydney is Australia’s most expensive market for houses, with a median price of just over $1.1 million. Regional New South Wales areas like Newcastle and Maitland are far more affordable.
Will the growth continue?
Many property analysts are predicting that property prices will continue to grow in 2022, but not at the rate seen in 2021. Median property prices in 2021 increased at the fastest rate since 1989. The demand was fuelled by factors such as record low interest rates and federal government grants to stimulate the building industry during the COVID-19 restrictions.
Even though price growth is likely to slow in 2022, good properties in good locations will always be in high demand. You should also always look at property as a medium to long-term investment (seven years or more), unless you’re looking at renovating and selling quicker. If you are, it’s important to renovate strategically.
How we can help
If you’re looking to buy residential or investment property in the Newcastle, Maitland and Lake Macquarie areas and you need finance, talk to us. Our licensed and experienced brokers at Wisebuy Investment Group can help you to find the right loan for your needs.
We’ll take the time to find out your individual needs before matching you with a suitable lender. We work with more than 60 lenders in the Australian market, and we can help you with your loan application. Importantly, we work for property buyers, not lenders.
Contact us today for an obligation-free chat to find out more. We’d be happy to answer any questions you have and to explore your finance options with you.
