In the last few years, demand for housing in regional Australia has reached unprecedented heights. Top real estate agents in Australia say that house price growth in regional areas has outpaced that of capital cities because of the strong demand. According to CoreLogic Australian house prices, in the year to January 2022, regional house prices grew by 26.1%. Thus outpacing the capital city’s growth of 21.3%. 

Investors and homebuyers alike are now debating whether or not this expansion will continue in the near future.

A NEW WAY OF LIFE

With the ongoing lockdowns in 2020 and 2021, regional Australian house prices began to rise. Tens of thousands of Australians relocated from the capital cities to more affluent areas during this period. Telecommuting and flexible work schedules also drew more people to the regional areas. The estate agents wonder if people will return to the cities now that much of the East Coast has returned to normal.

The CoreLogic Australian house prices data suggests that the regional areas have maintained their momentum. As the lockdown conditions in Sydney, Melbourne & Canberra were eased, regional price growth picked up speed towards the year-end. In contrast, house price growth in the country’s capital cities remained slow. Many brokers acknowledged that an unusual divergence was created between the two markets, with regional Australian prices rising by 6.3% over three months into January.

Economist Eliza Owen believes that regional house price growth is likely to slow in line with the broader market, but that doesn’t necessarily mean that prices are going down.

TOP REAL ESTATE AGENTS IN AUSTRALIA -PRICES WILL NOT BE GOING ANYWHERE ANYTIME SOON

“Regional housing markets are not immune from economic forces. And there is some room for growth in more affordable, peripheral areas to popular hot spots,” she said.

Top real estate agents in Australia agree with her statement as there has been a 38.2% increase in property values over the past year in NSW’s Southern Highlands and Shoalhaven region, followed by the Gold Coast in Queensland (36.3%) and the Sunshine Coast in Queensland (35.4%).

These areas have seen a large influx of people from other states looking for a better quality of life and more affordable housing.



Regional NSW, Regional QLD (including the Gold Coast and Sunshine Coast) and, to a lesser extent, Regional SA. These are all experiencing persistent demand and a shortage of properties in the real estate market today.

She is still optimistic about South East Queensland. But she warned that many regions would not be able to repeat their growth rates from the year before. This is on account of decreased affordability and access to credit.

Ms Owen believes that regionally affordable areas will see continued growth. As the areas with the most rapid growth until last year have become increasingly unaffordable for the locals.



To put it another way, Corelogic Australian house prices say how many people will make a choice on where to live in 2022 depends on the state of COVID-19. If employers make employees return to work a requirement, this could slow the exodus from urban areas.

According to various top real estate agents in Australia, this trend is expected to continue for some time, however, homebuyers prioritise lifestyle above all else in the short term.

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