‘Bridesmaid’ cities lure switchers

Regional “bridesmaid” cities are beginning to rival the real estate brides of Sydney, Melbourne and Brisbane, with their impressive population growth, buzzing local economies, improved amenities and infrastructure, affordable housing and increasingly attractive lifestyle as our capital cities get busier and more expensive.

Cities within two hours’ commute of primary metropolitan areas are the biggest winners of the metro-regional switch. While affordability remains a key reason to move, many say buyers are increasingly talking about escaping from city stress, traffic and the high cost of living.

Improved infrastructure has reduced the commute from many regional areas to capital cities, enabling switchers to enjoy a big-city income with a relaxed small-town lifestyle.

Geelong, 70km south-west of Melbourne, recorded the largest increase in dwelling values across non-capital-city Australia at 9.8% over the 12 months to April 2018, yet it remains more than $200,000 cheaper than Melbourne. Shoalhaven/Southern Highlands was the strongest-performing regional market in NSW with 9.2% growth, driven by demand from sea-changing and tree-changing downsizers and families.

Newcastle, just 160km north of Sydney, posted a 7.1% surge. Its appeal to cash-poor, asset-rich Sydney residents is obvious. It boasts a world-class university, vibrant coastal lifestyle and strong employment, with 37% of the population working in professional or managerial roles.

In the north, Queensland’s top two regional performers were the Sunshine Coast (5.1%) and the Gold Coast (1.9%) due to rising demand from interstate homeowners and investors. It is now more expensive to buy a house on the Sunshine Coast, where the median is $589,000, and the Gold Coast ($650,000) than in Brisbane ($536,000).