According to the latest analysis from property research group CoreLogic, 29 of the 50 house and unit markets in regional centres across Australia reported property price growth in the 12 months to October 2019.
House price growth was strongest over the period, with 16 of the regions analysed recording a rise in values, while nine regions recorded dwelling value declines over the same period.
Across the unit market, CoreLogic found that over the year to October 2019, 13 regional markets recorded price growth, while 11 experienced declines.
CoreLogic reported that the Queensland markets of Mackay, Isaac and Whitsunday reported the strongest price growth over the period (5.9 per cent), while NSW’s Illawarra region recorded the sharpest price declines (5.9 per cent).
According to Tim Lawless, the group’s head of research, the regional markets that experienced the strongest price growth were in close proximity to a capital city.
The analyst added that growing interest from investors in capital cities has also contributed to a rise in property prices across regional markets.
“As people are priced out of certain capital cities, buyers now appear to be looking to these adjacent regions,” he said.
“Home owners in Sydney and Melbourne have seen a substantial rise in housing equity over recent years.
“Subsequently, we are seeing some evidence that these buyers are starting to look for holiday and investment properties in certain regional markets, which is also providing an impetus for some of the value growth we are currently seeing.”
According to CoreLogic’s latest Hedonic Home Value Index, combined regional dwelling values rose 0.5 per cent in November.
As at 30 November, the median home values across Australia’s regions sat at $380,657.
[Related: Sydney sees largest price growth since 1988]