Regions Overtake Cities
Property value growth in regional markets has overtaken capital city markets.
In the three months to January, home values across the combined regional markets increased by 1.2%, while across the combined capital city markets rose by 1%.
CoreLogic research director Tim Lawless says regional markets are outperforming the capital cities, largely due to a slowdown in capital city growth rates.
He says high-interest rates seem to have more of an impact on price growth in capital city markets.
“I think a lot of these regions aren’t as sensitive to interest rate movements as what you might find in the capitals, so I wouldn’t be surprised to see the capital cities posting a stronger performance once interest rates are cut, especially in markets that have really stabilised and gone through some level of downturn like Sydney and Melbourne,” he says.
The Australian Regional Movers Index compiled by the Regional Institute of Australia and CBA shows the number of residents moving from the city to regional areas is higher than those moving in the other direction.
