Regional NSW property market showing nation-leading strength: Hotspotting's Terry Ryder
EXPERT OBSERVER
Regional NSW is showing nation-leading strength, with a record number of towns and suburbs recording growth in their sales activity in our new quarterly survey.
A total of 116 locations have rising markets, easily the highest number in the six years that Hotspotting has been conducting its quarterly surveys. The previous best were 70 growth locations in a mid-2018 survey and 77 late in 2019.
The results show evidence of the Exodus to Affordable Lifestyle trend which is sweeping the nation, with growth markets right across the state but most noticeably in locations close to Sydney.
The No.1 market, by a considerable margin, is the Central Coast. As the closest sea change market to Sydney, this market is getting significant uplift from the Exodus trend. There are 17 suburbs with rising sales activity and we expect strong price growth in the near future.
South of Sydney, the Wollongong, Shoalhaven and Shellharbour LGA jointly have 10 suburbs with upwardly-mobile markets.
Hill change markets within striking distance of Sydney are also rising, including the Blue Mountains (where four locations have rising sales activity) and the Southern Highlands (with five towns in the Wingecarribee LGA having upward sales momentum – refer below for data on price growth).
The Queanbeyan-Palerang LGA just outside Canberra is also thriving – it has five locations with rising sales activity. Nearby Goulburn is also a growth market.
The data for Newcastle is somewhat muted – it has only five growth suburbs, which is a small number for a city of its size in the current circumstances.
But neighbouring municipalities are doing better: Lake Macquarie has six growth suburbs, while Hunter Valley LGAs like Maitland, Cessnock, Singleton and Muswellbrook jointly have seven growth locations – with the Maitland LGA the standout.
The growth momentum has now spread further afield, with strength evident in markets like Orange, Bathurst, Dubbo, Armidale, Tamworth, Coffs Harbour, Port Macquarie, Albury and Wagga Wagga.
The strategic regional cities of Tamworth and Wagga Wagga both have five suburbs with rising sales activity.
In the Eurobodalla LGA on the state’s south coast, there is growth impetus in Malua Bay, Moruya and Tuross Head.
In terms of price performance, Regional NSW has done well in the past 12 months but in particular in the latest quarter.
Two-thirds of locations across Regional NSW have recorded growth in their median house prices in the past 12 months, but eight out ten have recorded uplift in the most recent quarter.
This indicates that the regional areas of the state have had an uplift in price performance recently, with the Exodus to Affordable Lifestyle a major influence.
The outcomes in annual terms include 67% of locations with apartment markets recording increases in their median unit prices and 65% of locations also having increases in median house prices.
Multiple locations have delivered double-digit increases in their median house prices over the past 12 months.
The Southern Highlands region south of Sydney is a standout. Median prices are up strongly in Bowral (23%), Burradoo (13%) and Mittagong (10%), boosted by the trend of people relocating from the big cities to lifestyle locations.
Parts of the Wollongong market are showing signs of benefiting from the trend, with Bulli up 13% and Thirroul up 18%. The Central Coast is a natural beneficiary also and several suburbs have delivered strong rises, including Umina Beach (10%) and Wyong (15%).
Ballina is also doing well, with annual median price increases in the suburbs of Ballina (15%), East Ballina (10%) and West Ballina (12%). Further north, locations in Tweed Shire are rising, including Kingscliff (12%) and Murwillumbah (10%).
In the far south of the state, the Wagga Wagga region continues to be a strongly-performing market, with median house prices rising in Lake Albert (11%), Mt Austin (11%) and Wagga Wagga (14%).
Growth markets are sprinkled throughout the regional areas of the state and across different price ranges. They include Caves Beach (up 11% to $870,000), Corowa (up 11% to $265,000), Inverell (up 11% to $290,000), Kyogle (up 12% to $300,000), Maitland (up 15% to $460,000), Malua Bay (up 24% to $640,000), South Grafton (up 12% to $280,000), Windradyne (up 11% to $460,000), Yass (up 18% to $500,000) and Young (up 11% to $310,000).
Terry Ryder is the founder of hotspotting.com.au
ryder@hotspotting.com.au
twitter.com/hotspotting
