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Australia’s regional housing markets have continued to demonstrate strength, with property values rising 1.0 per cent over the three months to January, compared to a 0.7 per cent decline in capital city values, according to CoreLogic’s latest Regional Market Update.
These findings come as CoreLogic recently revealed "remarkable resilience" in the regional housing market when compared to their capital city counterparts.
Data showed capital city values dipped into negative territory over the three months to January, down by 0.7 per cent, while regional values outpaced this with an increase of 1 per cent.
Almost three-quarters of regional suburbs (72.6 per cent) saw an increase in dwelling values during the three months to January, up from 66.2 per cent in the September quarter.
The Regional Market Update further showed this resilience in Australia's regional locations as Western Australia and Queensland recorded the strongest value gains across the country’s largest 50 regional significant urban areas, with Geraldton (6.3 per cent), Albany (5.9 per cent), Mackay (5.7 per cent), Townsville (5.1 per cent), and Gladstone (4.3 per cent) leading the charge.
However, momentum in most of these markets is now shifting. Gladstone’s quarterly growth rate has more than halved from the 9.9 per cent rise recorded in July 2024. Similarly, Geraldton’s three-month growth rate has slowed by 2.6 percentage points from its August peak.
Compared to the three months to October, 28 markets have seen a slowdown in the quarterly pace of growth, with 10 of 11 Queensland markets and three in four Western Australian markets recording an easing in growth.
CoreLogic Australia economist and report author, Kaytlin Ezzy, said it is likely growth in these markets will continue to moderate as affordability concerns dampen demand.
“Queensland and Western Australia markets have driven regional growth for more than a year; however, they are now clearly losing steam,” she said.
“The historically affordable mining markets of Gladstone, Townsville, Mackay and Geraldton, and the coastal markets of Busselton and Bunbury, have all seen significant growth over the past year, adding between $100,000 and $140,000 to their respective medians.
“While these markets continue to demonstrate strength, the slowdown in quarterly growth suggests that peak growth conditions in these areas may have passed.”
Ezzy said that while some markets are cooling, others are showing renewed strength.
In NSW, Bathurst recorded the sharpest turnaround, moving from a 1.8 per cent decline in October to a 4.2 per cent increase in January. Taree, Warragul-Drouin, and Ballarat also showed signs of stabilisation or modest uptick in growth.
“Regional markets in Victoria and the southern parts of New South Wales were among the worst performers in 2024, however, they have arguably gained somewhat of an affordability advantage over that time,” she said.
“We could be seeing the first green shoots in these markets, if growth conditions continue to improve.”
[RELATED: ‘Remarkable resilience’ shown in regional housing market]
