The War in Ukraine is being credited with an increase in regional Australian house prices, on the back of rising demand for wheat crops. PropTrack data shows many regional areas had average home value increases of more than $100,000 since May last year. Some are near major wheat producers, which have found new markets for their exports because of bad weather in normally high producing parts of the northern hemisphere and the Russian invasion of Ukraine.
The biggest increases were in the “wheat belt” areas of Western Australia, parts of the NSW Hunter Valley and the Riverina area as well as the southwest of the state.
The data shows Dungog in the Hunter Valley had the biggest price increase of 26% in the past year. PropTrack economist Angus Moore says there has been a boost in towns linked to growing industries. Ray White chief economist Nerida Conisbee says 2022 was a good year for some farmers and higher levels of wealth impacts property prices.