The arrival of the coronavirus pandemic certainly had an impact on the property market in 2020, from the rise in online auctions and virtual property tours during the lockdown to the growth in popularity of home offices in our homes. However, one trend that may have surprised many people was the increase in interest in property markets in our regional centres.
Whilst many people tended to dismiss the initial reports on this change in the market, the Australian Bureau of Statistics reported that 10,500 Australian urban residents moved to regional areas in the June quarter last year. This was the largest net loss of residents from capital cities ever recorded by the ABS.
Obviously, the increase in the number of people working from home, where distance from the CBD is no longer a major issue, has driven many Australians to reassess their address and their lifestyle. From a pure real estate perspective, what has been really interesting is the impact this trend has had on property prices.
According to the analysts at Corelogic, whilst national house prices rose by around 3 per cent over the past year, (an impressive result in itself given the challenges our economy has faced), the increase in regional housing prices over the same period was 6.9 per cent! This was the first time in over 15 years that regional price growth had exceeded the growth of the capital city markets.
Additional research conducted by Corelogic late last year suggested that towns within a two-hour drive of capital cities tended to attract the strongest interest from buyers. In Victoria these areas included Geelong and some of the smaller satellite towns along the Surf Coast.
The important thing to keep in mind if you are considering making this type of move is that these changes in market dynamics often tend to be cyclic in nature, so a degree of caution is recommended before making a major commitment of this type.
The other way to gain a degree of certainty in these uncertain times is to seek the assistance of an experienced Advocate, both in selecting the right property and area to move to, as well as maximising your return in selling your existing property.
The team at Ian Reid Buyer and Vendor Advocates are ready and able to assist you in all your property dealings, so why not give us a call on 9430 0000 today to discuss your options? You’ll also find plenty of helpful suggestions for property sellers in our free booklet, “Fatal Real Estate Traps Exposed”