Property markets across Australia have taken a hit from the Covid-19 crisis – but in some areas, house prices are expected to shoot up because of the pandemic.
Though national property prices slid 0.6 per cent in July, some regional areas in Victoria, Western Australia, Queensland and NSW have been earmarked to deliver price growth.
According to hotspotting.com.au managing director Terry Ryder, one of the biggest property trends to emerge from the pandemic was the increasing popularity of regional markets.
“Many parts of regional Queensland are strong growth markets, while the regional areas of Victoria, Tasmania and South Australia are all delivering price growth in defiance of the pandemic,” he said.
The global shift to remote work has also exacerbated the trend, he added.
These are the regions described by Ryder as “five star” growth markets, poised to deliver property price growth in the coming months and years:
1. Clyde/Casey, Victoria
Median house price: $550,000
Interest rates are at an all-time low and government assistance is at an all-time high, and younger Australians are looking to take advantage of these factors, Ryder said in his Winter 2020 Price Predictor Index report.
“There has never been a better time for first-timers,” he said.
“Affordable suburbs in our big cities with new housing estates are attracting strong business, with the suburb of Clyde in the City of Casey, in the far south-east of Melbourne, a prime example.”
Demand among younger buyers has risen steadily, Ryder added.
“The median house price for Clyde has risen 12 per cent in the past year, including 3.7 per cent in the latest quarter.”
2 Landsdale/Wanneroo, Western Australia
Median house price: $515,000
First-home buyers are eyeing the more affordable pockets of Perth’s property market, said Ryder.
“The City of Wanneroo in the far north of Perth has numerous housing estates providing affordable land and houses for younger buyers, helped by government incentives.”
Landsdale has been a “standout example,” where quarterly sales have been rising and vacancy rates have been trending down, keeping rental yields high.
“The latest data suggests prices are starting to rise here.”
3. Gisborne/Macedon Ranges, Victoria
Median house price: $730,000
Covid-19 has exacerbated the exodus away from capital cities, and this trend has been particularly noticeable in regional Victoria, according to Ryder.
“Towns like Gisborne in the Macedon Ranges LGA have seen a steady uplift in buying activity,” he said.
Sales in Gisbourne have nearly doubled over the past year, pushing up the median property price by 6.4 per cent just in the most recent quarter alone – and all of this is happening while Melbourne prices are generally falling.
4. Rockhampton, Queensland
Median house price: $180,000–$320,000
The regional areas of central Queensland are “thriving,” said Ryder.
“Demand for rental accommodation is rising in Rockhampton (as well as Mackay, Gladstone and the Whitsundays), with vacancies down and rents rising. Sales activity is rising as well,” he said.
“This is creating price growth.”
5. Engadine, NSW
Median house price: $910,000
While the generalisation is that capital city house prices are falling, the reality is that some pockets in the Sydney market are performing strongly.
“The Sutherland local government area, commonly known as The Shire, continues to attract good demand because of its enviable lifestyle based on water and national parks - and its affordable prices (relative to the North Shore, the Inner West and the eastern suburbs),” said Ryder.
The Shire will remain in high demand as Australians continue to work from home, eschewing the once-daily commute to the office.
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