Australia’s regional housing market is thriving, with combined dwelling values outshining their capital city counterparts.
Core Logic’s latest Hedonic Home value index released early this week, revealed that regional housing markets recorded an overall rise in dwelling values of 7.9 per cent over the past year, compared to only 1.7 per cent across capital cities.
“Housing values continued to rise through the first month of 2021 with CoreLogic’s national home value index up 0.9 per cent over the month,” the report said. “The January movement takes Australian home values to a fresh record high.”
In the Sunshine State of Queensland, growth is continuing in southeast hot spots of the Gold Coast, Sunshine Coast and even Toowoomba. For example, Sunshine Coast house values are up 9.3 per cent over 12 months and the Gold Coast is up 8.4 per cent, and most of that has been over the past three months.
Regional areas with diverse economies will continue to perform strongly. The trend towards regional markets existed before COVID-19, but the pandemic fast-tracked and is evident in the increased sales and decrease of days on market for many suburbs in and around the Sunshine Coast.
The market is surging on the back of low rates, government stimulus, and Aussies having more in their savings accounts on average, and it’s expected to continue throughout 2021.
As predicted, the RBA held the official cash rate at 0.1 per cent.