- Regional markets last year recorded their fastest annual pace in 35 years
- Stock of properties in regional markets is 37% down from pre-pandemic levels
- Regional Queensland the most searched regional market in Australia
Data released today has found that despite the slowing of property market conditions in regional Australia following the pandemic boom, the regional market is expected to outperform the capital cities.
The PropTrack Regional Australia Report 2022, analyses regional property markets around the country, following the fastest annual pace in price growth in 35 years last year.
It noted that the number of potential buyers per listing in regional Australia has fallen by 22% since the peak in January 2022. However, it remains close to three times pre-pandemic levels.
The stock of properties for sale in regional markets is still down 37% on pre-pandemic levels.
Lifestyle rethink caused boom
Eleanor Creagh, PropTrack Senior Economist, noted that throughout 2020 and 2021 multiple lockdowns and more time spent at home caused many Australians to reassess their housing needs and wants.
“As public health restrictions have eased and interest rates have quickly risen, the boom has been replaced with slower growth and elevated uncertainty,” said Ms Creagh.
“While it remains a relative bright spot in the current housing market, regional home prices are falling. Regional prices are expected to continue to decline amid monetary tightening and reduced net migration flows to regional areas.
“However, regional markets are likely to continue to exhibit a slower pace of price falls compared to capital cities. They remain buoyed by shifting lifestyle priorities, migration trends and affordability advantages that are still in play.
“In addition, conditions remain tougher for regional buyers, with the number of properties listed for sale still well below pre-pandemic levels, which is also seeing some markets remain more competitive and shielding home values.”
Other key findings of the report found that the share of property sales below their original list price increased by 20% to 49% in October 2022. This is the highest since October 2020.
The demand for homes in South Australia, Western Australia and regional Queensland continues to exceed that of homes in regional Victoria and New South Wales.
The top searched location for interstate property seekers is regional Queensland, with almost a third (31%) of all searches from interstate property seekers.
Data from PropTrack, owned by the REA Group, shows that Queensland continues to record a strong net gain of interstate migration.
Queensland continues to record net gains of people
Peregian Beach, on the Sunshine Coast, is the most in demand regional suburb, across all dwellings.
Top 10 in demand regional suburbs for all dwellings
The slowdown has resulted in an increase in the number of days for sale, which typically is higher for regional properties.
According to realestate.com.au, regional properties are listed for just over 50 days before being sold. Last year, this fell to a record low of 29 days.
