New research shows a strengthening of the regional property market does not extend to resource-driven areas.
The regional property market is making a comeback, with home values increasing most across the Illawarra region, Newcastle and Lake Macquarie region, the Gold Coast and the Sunshine Coast, according to CoreLogic RP Data’s quarterly regional report.
The Illawarra Region, 90 minutes south of Sydney recorded the largest increase in home values, up 9.3% for houses and 9.6% for units while the Newcastle and Lake Macquarie region also saw solid results over the year.
Senior researcher Cameron Kusher says, “These results are especially significant considering the lacklustre performance of many of these markets since the financial crisis, when both capital growth and sales volumes across these regions were declining.”
Kusher says that although regional areas are being bolstered by buoyant property market conditions from some of the capital cities, it is not extending to resource-driven areas.
“While low interest rates have contributed to consumer’s being more confident in property purchase decisions, not all regional centres are enjoying a boost with areas closely linked to resources sector still seeing deteriorating property conditions,” he said.
The report highlighted the increase in home value growth across many coastal lifestyle markets with Gold Coast home values up 4.8% for the year and 3.9% for houses and units, while Sunshine Coast home values had increased by 6.3% for houses and 4.7% for units.
“With mortgage rates tipped to remain low, the attractiveness of housing, particularly in some of the larger coastal regional markets, is likely to continue to show further growth over 2015,” Kusher said.