New report reveals how COVID-19 has accelerated interest in surging regional Australian property markets
COVID-19 has resulted in shifts across many parts of the economy including preferences and demand for housing.
Throughout regional Australia, it appears population growth is strengthening more quickly than what would have otherwise occurred in 2020.
While these population shifts can’t be confirmed until the Australian Bureau of Statistics (ABS) releases its data, preliminary data is now showing the biggest shift to regional Australia from capital cities. For some time now, we have seen parts of regional Australia increasing in popularity on realestate.com.au.
Search activity for regional Australia began to surge following the first lockdown in mid-March, which has since resulted in house price growth.
There are two distinct trends driving up demand for regional property; lifestyle and jobs. As such, there are some areas experiencing far stronger interest than others.
Remote working as a result of COVID-19 is making a lifestyle change possible for some, while strength in parts of the economy that are more COVID-19 resistant than others, in particular mining, is also sending people to regional communities.
The pandemic has also accelerated interest in some regional areas that were already very popular prior to COVID-19.
Mining towns such as Orange and Karratha are seeing strong demand off the back of a resurgence of the mining sector while areas such as the New South Wales Mid North Coast appear to be benefitting from people looking to make a lifestyle change.
Prior to COVID-19, fringe cities were benefitting from population growth and affordability and that trend has continued to accelerate. The biggest change occurring is the rising popularity of areas that are not within commuting distance to a CBD.
Over the last 20-years, beachside areas have become more attractive, which has resulted in significant price growth. The strongest performing regional town over that same time period is Bangalow, near Byron Bay, which has seen its median house price increase more than 1,200 percent from $76,025 in 2000 to $1.05 million in 2020.
The main areas benefitting from the regional shift include:
More from Insights
Victoria – Geelong, Bendigo, Ballarat, Latrobe-Gippsland, Warrnambool and the South-West, Mildura and Wodonga
New South Wales – Illawarra, Southern Highlands and Shoalhaven, Hunter Valley, Central West (particularly Orange) and coastal areas from Mid North Coast up to the Queensland Border
Queensland – Gold Coast, Sunshine Coast, mining regions (excluding coal)
Western Australia – Mandurah, Margaret River region and mining regions
South Australia – Port Elliot and surrounding region, Mount Gambier and the South-East
Tasmania – Launceston and the North East