The regions giving the capital cities a run for their money

With circumstances surrounding the pandemic allowing more people to work remotely than ever, many made good on these plans. But according to new data, what they may have found is that the rapid acceleration of regional movers has pushed up median home prices in those perceived “affordable” areas, in some cases elevating prices higher than in the capitals they were leaving.

A new report from Ray White’s chief economist, Nerida Conisbee, revealed that while Sydney continues to have the highest median property price at $1.4 million, Illawarra now comes in second in the nation, with a median price of $1 million.

“In March 2020, there were 10 regional areas that were more expensive than the capital city with the lowest median, Perth,” Ms Conisbee commented. “Since then, median prices in five regional areas have overtaken not just Perth but also Darwin and Adelaide. These are Hunter Valley, Ballarat, Bendigo, Latrobe-Gippsland and south-east Tasmania,” she said.

Notably, there are now three regional areas that are more expensive than Melbourne – Illawarra, Sunshine Coast and Richmond-Tweed. 

“Prior to the pandemic, there were none,” Ms Conisbee noted.

Canberra now sits in third place, with the Sunshine Coast and Richmond-Tweed following as the regions with the most expensive median prices.

In Ms Conisbee’s view, while this trend may not accelerate over the coming year, she does believe that the country will continue to see popularity in city-adjacent lifestyle areas.

“Areas close to capital cities such as Geelong and Illawarra are likely to continue to see strong growth. Not only were these areas doing well prior to the pandemic, their pricing is now starting to more closely resemble nearby Melbourne (for Geelong) and Sydney (for Illawarra).”