Summer in Australia has arrived with full force, and the team at Resale Australia have been watching Aussie property prices heat up as well.
CoreLogic’s latest Regional Report, released earlier this month, is a significant annual summary of regional property markets. The report represents one of the most comprehensive analyses of regional property markets available, and offers informed insights into how they are travelling over short and long trend lines.
Of the 50 non-capital city markets CoreLogic studied – 25 each for both houses and units – 29 of them (58%) showed increases in sales prices over the previous 12 months to October 2019.
It showed much of the action was in the eastern half of the country with a number of regional property markets from north Queensland to Tasmania recording the greatest activity over the period of the study. The report covered measures such as best and worst regional property markets in terms of growth, volume, and days on the market.
Overall, sales volumes across the regions barely shifted, with many of them showing a decrease in activity over the year. Even those in the top sales activity bracket saw less than a 1% increase in sales volume compared to last year.
How house sales fared
The figures for days on market are among the most dramatic, with a 68-day difference between the fastest and slowest selling house markets in regional Australia, and 82 days for unit markets.
Best and worst growth
- Queensland’s Whitsunday-Isaac-Mackay region wins the prize for best performing regional sector in house sales over the last year. A coastal region fronting onto the southern edge of the Great Barrier Reef, it saw rises of 5.9% across the year.
- The Illawarra region south of Sydney clocked the worst performing regional house figures over the period, with a drop of 5.9%.
- Bunbury in Western Australia, was the most active housing market in the country with an increase of 0.8% over the period.
- House sales in Victoria’s Latrobe-Gippsland region declined by 22.1% in volume over the year, making it the least active regional area in the country.
Time on the market
- Victoria’s Ballarat region recorded the quickest sales turnaround, with an average of 33 days on-market before a sale.
- Southern Highlands and Shoalhaven in NSW were the worst performers, with houses in play for an average of 100 days.
- Vendor discounts to secure house sales also showed some stark differences with the keenest sellers in Townsville (Qld) offering a -7.8% discount average
- Central West NSW was the least discounted market, with vendor discounts at -4%.
What about units?
Best and worst growth
- The champion regional unit market on sale prices was the Launceston and North East region in Tasmania, with an uptick of 10.7%. This is the best price increase across both unit and house prices over the survey period.
- Bunbury, Western Australia, felt the pinch with unit sales prices declining by 17.2% across the year.
Time on the market
- In Ballarat, as with houses, the unit market was the fastest in regional Australia, with an average of 30 days between hitting the markets and getting a sale.
- New England and North West NSW units had the longest time on the market before a sale at 112 days, a difference of 82 days compared to Ballarat.
- As a logical reflection of its fast market, Ballarat had the lowest discount rate across regional unit markets, at -2.8%.
- Sellers in Central Queensland were obliged to offer the highest discount rates of any region, with a -9.5% average coming off unit prices before a sale.
Is it time for you to sell?
The bottom line we can take from this report is that property prices in regional areas are mainly doing well, and if you’ve been thinking about selling, now may be the time to act, particularly if it’s in one of the hot spots we’ve identified. Resale Australia is well equipped to help you take advantage of the opportunities these trends present. Simply complete the appraisal form and we’ll let you know what your property could fetch.