Australia’s regional property markets continue to outperform their capital city counterparts, with Queensland and Western Australia emerging as clear leaders.
According to CoreLogic’s latest Quarterly Regional Market Update, regional dwelling values rose by 1.1% over the three months to October, compared to just 0.8% growth in capital cities.
Mining towns and lifestyle regions in WA and Queensland dominated the top-performing areas.
Kaytlin Ezzy (pictured above), CoreLogic economist and report author, attributed the growth to a mix of affordability and lifestyle appeal.
“Regions like Mackay, Geraldton, and Townsville are seeing exceptional growth, driven by affordability advantages compared to our major cities, as well as lifestyle appeal,” Ezzy said.
Mackay led quarterly growth with an 8.3% rise in dwelling values, followed closely by Geraldton at 8.2% and Townsville at 6.6%. Over the year, Geraldton recorded an impressive 28.7% increase, adding more than $100,000 to the median property value.
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While mining and lifestyle regions thrived, several coastal markets in NSW and Victoria faced challenges.
Batemans Bay in NSW recorded the largest quarterly decline, with values dropping by 2.7%. Other areas, such as Warrnambool in Victoria, also saw significant declines.
Ezzy explained the downturn in these regions as a correction following their COVID-era boom.
“While these markets thrived during the early stages of COVID, reduced affordability and a range of headwinds have since softened conditions,” the CoreLogic economist said.
Rental markets in regional Australia continued to outperform, with rents rising 0.5% over the quarter. Albany, in WA, led with a 3% increase, while Geraldton saw annual rents rise 14.6%, equivalent to an extra $66 per week.
“Rental markets where there’s been strong quarterly increases are experiencing a combination of strong tenant demand and constrained supply,” Ezzy said.
Kalgoorlie-Boulder recorded the highest gross rental yields at 8.8%, reinforcing WA’s dominance in the regional rental market.
Sales activity remained strong in many regional areas, particularly in Geraldton and Gladstone, which posted annual sales growth of 44.2% and 34.3%, respectively.
Ezzy highlighted the resilience of these regions despite national economic pressures.
“Momentum in these leading regional markets remains strong,” she said.
With affordability, lifestyle benefits, and solid rental returns, Queensland and Western Australia continue to attract buyers and investors to regional markets, CoreLogic reported.
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