Houses are getting cheaper in these regional areas

Forget about a sea-change, Australians are yearning for a tree-change, and for good reason.

Housing prices, the ability to work from home and relaxed lifestyles are pulling Aussie home-buyers out of concrete jungles and into rainforest, coastal and rural hotspots.

But some areas are doing better than others, new research from property research group, CoreLogic has revealed.

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“While a great deal has been written about the resurgence in the so called ‘sea change’ phenomenon, many of the prime hinterland regions within close proximity to Australia’s capital cities have also benefited from a renewed ‘tree change’,” CoreLogic head of research, Tim Lawless said.

“Although the pace of capital gains is generally easing, a variety of factors have contributed to renewed demand for properties outside the cities,” he continued.

He suggested the “wealth effect”, where city-dwellers experience a substantial wealth boost by moving, and Baby Boomer’s dreams of a tranquil retirement are major contributors.

“Perhaps another element is the growing acceptance and popularity of ‘telecommuting’ thanks to faster internet speeds, wider employer acceptance of working from home.”

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At the same time, hinterland regions often offer cheaper prices.

However, not all tree-change destinations are enjoying the same levels of price growth.

Where is house price growth slowing, or even going backwards?

Southern Highlands, NSW

Over the last five years to August 2018, the Southern Highlands have seen annual values growing at 9.3 per cent.

However, it’s slowed in the last year to just 1.4 per cent, with a median dwelling value of $735,371.

Blue Mountains, NSW

Similarly, the Blue Mountains has seen its strong 5-year average (+9.0 per cent) wane to negative annual growth (-0.7) per cent in the last year.

Here, the median dwelling value is $619,954.

Richmond Valley – Hinterland, NSW

The Richmond Valley has seen its more modest 3.9 per cent five-year average growth fall to 3.2 per cent in the last year.

The median value here is the cheapest of the NSW hinterland markets; $335,718.

Yarra Ranges, Vic

The Yarra Ranges’ -0.6 per cent value fall in the last 12 months has come off the back of an average annual value change of 7.8 per cent over the last five years.

The median dwelling value here is $674,944.

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Kalamunda, WA

The average value fall of -2.6 per cent over the last five years has worsened to -5.7 per cent in the last 12 months.

However, prices here are also on the cheaper end of the scale, averaging $457,055.

Mundaring, WA

Its median value of $452,224 reflects a slowing in annual value change to -4.3 per cent over the year to August 2018 from its five-year average of -3.8 per cent.

Adelaide Hills, SA

This winery region with a median dwelling value of $494,166 has seen annual value change slow from its five-year 2.1 per cent average to 0.8 per cent in the year to August.

Sunshine Coast Hinterland, Qld

Here, annual value change was at 2.2 per cent in the year to August 2018. However, the five-year average value change sits at 4.5 per cent, with a median dwelling value of $539,954.

Where is house price growth increasing?

Macedon Ranges, Vic

With median dwelling values of $700,664, Macedon Ranges has enjoyed an increase in average value change from 2.6 per cent over the last five years to 7.5 per cent.

Central Highlands, Tas

Here, annual value change has increased from a 5.1 per cent five-year average to 6.8 per cent, bringing median prices to $214,004.

Gold Coast Hinterland, Qld

Unlike its Sunshine Coast neighbour, the Gold Coast Hinterland’s 8.1 per cent value change seen in the 12 months to August reflects an increase from its five-year 6.8 per cent average.

Median dwelling values in the Gold Coast Hinterland are $593,954.

“The regions to see the strongest growth over the past five years are generally very different to the best performers over the past twelve months,” Lawless noted.

“The hinterland areas peripheral to Sydney have dominated the capital gain stakes over the past five years, however growth in those areas has slowed substantially over the past twelve months.”