Mackay recorded 8.3 per cent quarterly growth in property values, says CoreLogic. Picture: ANDREW KACIMAIWAI
Regional and coastal housing markets are again outperforming capital cities as Queensland and Western Australia lead the way, says a new property quarterly report.
The latest update from property analysts CoreLogic found that housing values in regional areas rose 1.1 per cent over three months to October compared to 0.8 per cent growth in capital cities.
CoreLogic Australia economist and report author Kaytlin Ezzy said mining towns were well represented among the best performers with 8.3 per cent for Mackay (central Queensland) the top area for quarterly growth.
Mackay was followed by Geraldton in WA (up 8.2 per cent) and Townsville (Qld) up 6.6 per cent.
Geraldton recorded the strongest annual increase with housing values up 28.7 per cent in the 12 months to October, adding more than $100,000 to the median value, the report states.
Queensland’s Gladstone and Townsville also recorded 27.2 per cent and 26.9 per cent respectively.
“Regions like Mackay, Geraldton, and Townsville are seeing exceptional growth, driven by affordability advantages compared to our major cities, as well as lifestyle appeal,” Ezzy said.
“This will have contributed to the strong demand but even with the impressive growth, for those with the capacity to service a mortgage, they still remain attainable with medians less than $600,000.”
Across the largest 50 regional areas, seven out of eight in Victoria and 10 out of 21 in NSW saw values fall over the three months to October: Batemans Bay, on NSW’s South Coast, recorded the largest fall in values, down 2.7 per cent, followed by Victoria’s Warrnambool (-2.6 per cent).
Over the year, 10 markets in NSW and Victoria fell in value; Ballarat recorded the largest fall (down 6.3 per cent) followed by the St Georges Basin-Sanctuary Point region in NSW, and Warragul-Drouin region in Victoria, both down by 3.9 per cent.
RENTAL MARKET
Regional rental markets also outperformed their capital city counterparts with rents increasing 0.5% over the quarter compared to flat conditions in the capital cities.
Albany, southeast of Perth, was the strongest market with a 3 per cent quarterly increase in rent followed closely by Mount Gambier in South Australia (2.7 per cent).
Geraldton recorded a 14.6 per cent lift in annual rent, equivalent to an extra $66 a week in rent, due to strong demand, a shortage of stock and possibly investor appeal, Ezzy said.
“Rental markets where there’s been strong quarterly increases are experiencing a combination of strong tenant demand and constrained supply,” she said.
Regional Western Australia also delivered the highest gross rental yields with Kalgoorlie-Boulder yielding 8.8 per cent. The Bowral–Mittagong region in NSW again recorded the lowest gross rental yields at 3.2 per cent.
“Despite challenges such as high interest rates, affordability pressures, and economic uncertainty in other parts of the country, momentum in these leading regional markets remains strong,” Ezzy said.
