PropTrack reveals the fastest growing markets post-COVID-19

An analysis released by PropTrack into the property market four years on has found that regional home prices have “significantly outperformed” their capital city counterparts in all states except Western Australia and the Northern Territory.

This is despite capital city markets having outperformed regional areas over the past year, with capital city prices rising by 7.64 per cent versus 4.67 per cent in the regions.

According to PropTrack, regional Queensland has recorded the strongest growth in the country since the pandemic at 66.5 per cent, followed by regional South Australia at 66.2 per cent, Adelaide (64 per cent), and Brisbane (63.1 per cent).

PropTrack senior economist Eleanor Creagh said there was a pause in the housing market at the very onset of the COVID-19 pandemic as lockdown restrictions and closed borders caused many to think home prices will fall.

“In fact, the opposite occurred. Housing demand surged, and along with record low interest rates and limited stock for sale, combined to drive a price boom that saw national prices growing at the third-fastest rate in Australia’s history,” Creagh said.

“But it was regional areas that experienced the most significant price surge.

“Closed international borders and more time at home caused housing preferences to shift. Smaller household sizes, space and lifestyle became a higher priority and proximity to the CBD less so.”

As a result of this, coastal and regional property prices also surged along with outer capital regions, Creagh added.

The Wide Bay region recorded growth of 80.5 per cent since March 2020, followed by Ipswich (79.7 per cent), Adelaide North (77.6 per cent), Gold Coast (74.3 per cent), and Logan-Beaudesert (74.1 per cent).

Creagh continued: “Remote work trends, relative affordability and those preference shifts drove strong population growth and housing demand in coastal and regional areas, mostly at the expense of Sydney and Melbourne.

“In fact, regional areas experienced the biggest net influx since Australian Bureau of Statistics records began in 2001.

“Queensland (both metro and regional) in particular experienced unprecedented population flows, with more people moving to Queensland from other states and territories than to anywhere else in the country. The state is home to six of the top 10 highest growth regions since March 2020.”

Home values up for 14th month in a row

CoreLogic’s Home Value Index (HVI) showed that home values rose 0.6 per cent during the month of March in the 14th consecutive month of price growth, while values rose 1.6 per cent over the March quarter 2024, adding around $12,000 to dwelling values.

PropTrack’s Home Price Index also recorded a price peak in March, with prices increasing by 0.34 per cent and up 1.57 per cent in the year so far. Home prices are now 6.79 per cent above levels recorded in March 2023.

CoreLogic research director Tim Lawless and Creagh both attributed Australia’s housing undersupply and the ongoing demand to the rise in home values.

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