The regional lending and property markets are still riding the boom despite reports of a slowdown in some of Australia’s capital cities, according to a regional lending specialist.
Speaking to Mortgage Business sister title The Adviser, lending specialist at Regional Finance Solutions Brook Simpson noted that markets have continued to flourish in regional NSW, bucking the reported downward trend in the major cities.
“We’re still benefitting up here, [and] it hasn’t really slowed in this area — in the mid-north coast through to the northern rivers,” Mr Simpson said.
“There are a lot of road works that have been going on here for the last couple of years which are nearing completion,” the lending specialist said, adding that these constructions are helping to make property more accessible.
Mr Simpson also stated that home values in regional NSW are still rising and that he does not see market activity slowing any time soon.
The mortgage broker added: “[Property] prices are still slowly climbing. Once a property goes on the market, it’s generally snapped up very quickly, so we’re still seeing the benefits of [the boom] and it’s not predicted to ease at this rate until probably the end of the year.
“We’re still quite busy, real estate agents are still busy, and they’re looking for properties. It’s still very busy out there in the market, so it’s all positive.”
Mr Simpson’s comments echo those made recently by LJ Hooker, whose head of research, Mathew Tiller, predicted that regional growth will outpace capital cities growth in 2018.
“The comparative affordability of regional centres makes them more attractive for those looking to downsize or for those that want to upsize to a large family house without taking on a large mortgage,” Mr Tiller said.
“In addition, the lower cost of housing in regional centres, less supply of new housing and steady population combine to make rental yields higher than in capital cities, which in turn attract investors.”
LJ Hooker also expects to see a drop in investor activity in the year ahead.
“Listings will rise as owners look to capitalise on the price growth of the last five years,” Mr Tiller said.
“However, with regulatory authorities and banks placing limitations on investor activity, there will be less investors in the market, leaving listings at elevated levels.”
[Related: Sydney drags down national home values]