Fastest growing regional markets revealed
The strong performance of Australia’s capital city property markets is having knock-on effects, with property values now climbing in many regions across the country.
RP Data research analyst Cameron Kusher said that during the course of 2013, only 16 council areas across the country recorded a fall in median house values.
“News of value growth across most markets over the year will be welcomed by the regional markets where, in some cases, they’ve been doing it tough. These results suggest it is not just the capital city housing markets benefiting from the low mortgage rate environments, so too are regional areas,” he said.
Topping the list of best performing regional areas, with a 35 per cent increase in median values, was the Carrathool council area in New South Wales’ Riverina region. Western Australia and New South Wales each account for 10 of the top 25 regions, followed by Victoria with four regions and South Australia with one. The full list of the top performing regional areas for 2013 can be seen below.
Mr Kusher noted that in New South Wales, Victoria and South Australia, the regions that recorded the greatest increases in house values could best be described as ‘small regional markets’ generally located in the non-coastal areas of the state.
A different trend emerged in Western Australia, where Mr Kusher found a number of lifestyle markets around well-known coastal areas were improving after years of underperforming.
The regional area that recorded the greatest fall in values was Isaac in Queensland, a once fast-growing, resource-rich mining area, where median house values dropped by 12.4 per cent over 2013.
According to Mr Kusher, many of the council areas to record drops in property values are linked to the mining and resources sector, where investment peaked in 2013.
“As the results show, we are now seeing the impact of a lower demand for workers, which is in a number of areas resulting in falling house values,” he said.
Mr Kusher said, with capital city values continuing to climb in 2014 many regional areas should continue to feel the knock-on effects.
“As 2014 progresses I would anticipate more of the same, where resource areas will lag and other regional markets will gradually record further value rises,” he said.
“Overall, the challenge in the mix will be the rising levels of unemployment, which can be more detrimental to less diversified regional economies than to capital city markets.
“On a positive note, with mortgage rates tipped to remain low and talk that the Australian dollar will continue to fall, the attractiveness of housing, particularly in some of the larger regional markets, is likely to continue to show further growth over 2014.”
Change in house values across regional housing markets throughout 2013
GREATEST INSREASES
| Council Area | State | Median value | 12-mth change |
| Carrathool | NSW | $128,939 | 35.0% |
| Weddin | NSW | $155,526 | 21.4% |
| Moora | WA | $230,782 | 21.3% |
| Coonamble | NSW | $125,825 | 20.0% |
| Augusta-Margaret River | WA | $562,435 | 19.9% |
| Mildura | VIC | $217,557 | 19.6% |
| Katanning | WA | $213,005 | 18.7% |
| West Wimmera | VIC | $119,213 | 18.3% |
| Wellington | NSW | $158,498 | 17.7% |
| Waroona | WA | $344,194 | 17.4% |
| Narrogin | WA | $210,451 | 16.7% |
| Murray | NSW | $220,708 | 16.5% |
| Temora | NSW | $194,847 | 16.5% |
| Capel | WA | $469,627 | 16.1% |
| Denmark | WA | $451,543 | 15.9% |
| Busselton | WA | $507,062 | 15.8% |
| Hay | NSW | $158,748 | 15.2% |
| Moree Plains | NSW | $194,028 | 14.8% |
| Parkes | NSW | $233,681 | 14.70% |
| Baw Baw | VIC | $321,646 | 14.4% |
| Ararat | VIC | $190,205 | 14.3% |
| Grant | SA | $293,935 | 14.3% |
| Cootamundra | NSW | $198,255 | 14.0% |
| Murray | WA | $425,118 | 13.0% |
| Merredin | WA | $200,391 | 13.7% |
GREATEST FALLS
| Council Area | State | Median value | 12-mth change |
| Isaac | QLD | $474,499 | -12.4% |
| Bourke | NSW | $135,838 | -4.5% |
| Ashburton | WA | $655,118 | -3.1% |
| Walgett | NSW | $129,787 | -3.0% |
| Gunnedah | NSW | $270,732 | -2.6% |
| Singleton | NSW | $405,665 | -2.5% |
| Barcaldine | QLD | $209,263 | -2.1% |
| Gladstone | QLD | $419,518 | -1.9% |
| Roxby Downs | SA | $419,469 | -1.7% |
| Barunga West | SA | $268,193 | -1.5% |
| Exmouth | WA | $520,147 | -1.4% |
| Derby-West Kimberley | WA | $472,275 | -1.2% |
| Central Highlands | QLD | $398,575 | -1.2% |
| Tasman | TAS | $246,024 | -1.0% |
| Great Lakes | NSW | $369,491 | -0.7% |
| Brighton | TAS | $200,284 | -0.5% |
Source: RP Data