Hotspots lead regional downturn

LIFESTYLE hotspots that saw record-breaking price growth during the COVID pandemic are among the first regional areas to record quarterly price falls according to new data from CoreLogic.

The largest quarterly falls in house values all occurred in New South Wales, led by the Richmond-Tweed region, down 4.5 per cent, followed by Illawarra, down 3.5 per cent, and Southern Highlands and Shoalhaven, down 3 per cent.

The figures were announced alongside CoreLogic’s latest quarterly Regional Market Update, which examines growth conditions across Australia’s largest 25 non-capital city regions.

All regions recorded an increase in house values for the 12 months to July 2022, though inland markets overtook coastal hotspots for growth.

NSW’s Riverina region was the best performer among regional house markets, with an annual increase of 27.8 per cent, while the New England and North West region was up 26.4 per cent.

The lowest yearly growth rate was recorded across Ballarat in Victoria, up 7.4 per cent.

CoreLogic Economist Kaytlin Ezzy said that interest rate hikes and inflationary pressures were weighing on some regional markets.

“Typically, markets with a higher median value tend to lead the broader market when shifting through different cycles,” she said.

“After recording some of the strongest value growth throughout the COVID period, each of these areas now have a median house value in excess of $1 million.

“As we move further into the downward phase of the cycle we would expect to see this decline in values to spread into more regional areas.”

– BY REALESTATEVIEW.COM.AU