Region’s market power

DWELLING values outside of southeast Queensland are proving more resilient than those in the capital, with values down just 1.89 per cent since their peak compared to 2.77 per cent in Brisbane.

The latest Proptrack Market Insights Report shows that demand for more affordable regions and larger homes continues to support regional values, with three regions hitting peaks in October – Toowoomba, up 12.96 per cent year-on-year, Townsville up 6.41 per cent and MackayIsaac-whitsunday up 7.28 per cent.

But those same regions could still be rising, PropTrack senior economist and report author Eleanor Creagh said, adding that the ‘ regional renaissance’ that lead to regional home prices booming throughout the pandemic had seen prices outside of the capitals holding up stronger.

Cairns values were down 0.2 per cent in October.

“Regional home prices have increased 6.49 per cent in the past year, compared to a 2.08 per cent decline in the capitals,” she said.

“Home price falls in regional Australia are also not as widespread as metro areas.

“Out of the 42 regional areas classified by the Australian Bureau of Statistics as SA4S, 28 have seen prices fall from their peak, while 41 of the 46 metro regions have seen home prices slip from peak levels.”

Ray White’s Julie Mahoney said Townsville hadn’t seen the “out-of-control” price growth that some southern regions had, with the garrison city only now just “on par” with its previous housing price boom.

But Ms Mahoney said rising rates and reduced borrowing costs were having some impacts on budgets in outer suburbs.

“Even if we are at the peak, I suspect it will remain a steady peak,” she said.

“We are seeing our population increase, people are still relocating here, our vacancy rate is less than 0.5 per cent, there is not enough stock to meet the demand.

“We have what I call parkers, people buying anything instead of renting and then waiting out for their dream home.

“You can’t generalise Townsville in terms of peaks as places like the inner-city, which is tightly held anyway, is strong.”

At the other end of the spectrum is the Sunshine Coast and Gold Coast, arguably two of he hottest regions for interstate migration during the pandemic migration.