Property prices have boomed across Australia over the past 12 months. In fact, they have grown at the fastest annual rate since 1989. Prices in regional areas have led the charge.
Regional property price growth is outstripping capital city price growth for the first time since 2004. According to the latest data from Core Logic, property prices in regional Australia have grown by 21.6% in the 12 months since August 2020. The average price of regional property is now $493,925.
In regional NSW, average property prices have grown by a whopping 24.8%, second only to regional Tasmania (26.1%).
The Newcastle and Lake Macquarie area of NSW has experienced 26.2% growth, with prices now averaging $750,000. The Hunter Valley has had 24.1% growth, with average prices now at about $570,000.
Capital city growth
Prices in Australia’s capital cities have risen by 17.5% over the same period to reach an average price of $751,014. This increase has added more than $100,000 to the price of the average property over the past year.
As usual, Sydney is by far Australia’s most expensive capital city for property, with average prices now over $1 million.
What is driving regional property price growth?
There is no doubt that COVID-19 lockdowns and restrictions in places like Sydney and Melbourne have helped to drive the regional property boom. Both capital cities recorded a decline in population for the first time in living memory.
Of course, drastically reduced immigration levels due to COVID-19 have played a significant part in that decline, but the number of tree and sea changers also contributed. It seems that many Australians are seeking a lifestyle change away from the major capital cities. The increased trend towards working from home is also a driving factor.
Areas that are within commuting distance to major capital cities tend to be the most attractive for property buyers at the moment. In NSW, these areas include Newcastle, Lake Macquarie, the Illawarra, Coffs Harbour, Grafton, the Hunter Valley, the Southern Highlands, Shoalhaven and the Mid North Coast.
The comparative affordability of regional NSW properties compared to those in Sydney also helps to make them more attractive to buyers. Buyers have to borrow less, which means that monthly loan repayments are lower.
It’s not just those looking to live in regional areas that are looking to buy there either. Property investors are also seeing the appeal.
How we can help
If you’re looking to buy an investment property or a home in regional NSW, our experienced and licensed brokers at Wisebuy Investment Group can help you to find the right loan for your needs. We can also help you with your loan application.
We service a diverse range of clients in the popular Newcastle, Lake Macquarie and Maitland areas, and we work with more than 60 lenders in the Australian market.