Capital Cities Stumble as Regional Markets Thrive: Is the Aussie Dream Shifting Gears?

Property values in Australia's regional areas are leaving their capital city counterparts in the dust, according to a new report. The research, conducted by CoreLogic, shows that despite rising interest rates and pre-pandemic migration patterns returning, regional markets continue to exhibit impressive resilience.

While capital cities witnessed a slowdown in growth, values in regional areas rose by 1.2% in the three months leading to January, compared to a mere 1% increase in major cities. This trend suggests a potential shift in the Australian property landscape, with regional areas becoming increasingly attractive options.

The report attributes this regional growth to a combination of factors: increased migration from cities during the pandemic, the relative affordability of regional properties, and the presence of thriving industries like mining. Locations like Lismore in New South Wales and coastal towns in Western Australia witnessed significant growth, further highlighting the diverse appeal of regional markets.

Interestingly, the report also identifies a slowdown in the regional growth rate, suggesting that the market may be reaching a peak. CoreLogic's research director, Tim Lawless, emphasises that the current trend is more a consequence of slowing capital city growth rather than an acceleration in regional markets.

This news raises questions about the future of the Australian property market and potentially signifies a shift in buyer preferences. With regional areas offering affordability, diverse economic opportunities, and attractive lifestyles, their increasing appeal could reshape the landscape of the Aussie Dream.