The best and worst performing regional housing markets in 2020 revealed

author-avatar By on August 18, 2020
The best and worst performing regional housing markets in 2020 revealed

Photo by Yashi Wang on Unsplash

Houses in Illawarra and units in regional Tasmania have been the standout performers in the regional housing market over the year to July 2020.

That's according to analysis by CoreLogic of Australia's 25 largest non-capital city markets to find out where has performed best and worst. 

Illawara (NSW) had both the highest yearly growth and highest change in sales volumes in the regional house markets, at 12.0% and 14.0% respectively.

Ballarat (VIC) also demonstrated strong selling conditions for houses, with homes selling in just 30 days for very little discount. 

Launceston and North Eastern Tasmania had the highest yearly growth in regional unit markets at 14.8%, and only took 26 days to sell with minimal discount.

The volatility of the regional Tasmanian market was seen in Launceston and North Eastern Tasmania also having the lowest change in sales volumes for both houses and units. 

Buying a home or looking to refinance? The table below features home loans with some of the lowest variable interest rates on the market for owner occupiers.

Base criteria of: a $400,000 loan amount, variable, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. If products listed have an LVR <80%, they will be clearly identified in the product name along with the specific LVR. The product and rate must be clearly published on the Product Provider’s web site. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term.

Tim Lawless, CoreLogic Head of Research, said housing values in regional markets had been little affected by the COVID-19 pandemic. 

"Broadly, regional housing values have held firm through the COVID period compared with their capital city counterparts, with dwelling values across the combined regional areas of Australia slipping by only 0.1% between March and the end of July, while capital city home values are down 2.0% over the same period," Mr Lawless said. 

"While the region by region data shows diversity, the relatively steady conditions across the regional markets of Australia can probably be attributed to factors such as less impact on housing demand from stalling overseas migration; Close to 85% of Australia’s net overseas migration flows into the capital cities.

"Also there likely remains some momentum in the trend towards rising demand for lifestyle properties that was prevalent prior to COVID-19."

Bunbury (WA) was the worst performer for regional house markets, down 6.3% in the year to July 2020, while Hume (VIC) was the worst for units, down 11.1% in the same period. 

New England and North West New South Wales had the longest days on market for houses at 99 days, while in Wide Bay (QLD) it took 105 days to sell a unit. 

Townsville had the largest discounts to secure a sale for both units and houses, at 5.9% and 6.2% respectively. 

Mr Lawless said regional areas offered a wide range of advantages and risks compared to the nation's capitals. 

"On the positive side, housing prices tend to be lower, providing a more affordable entry point to the market, population densities are generally lower which is something that might be even more appealing as we move through this pandemic, and in many examples, regional areas will offer some lifestyle advantages, either via the locations proximity to the coastline or wide open spaces," he said.

"On the downside, regional economic conditions can be more volatile, especially those areas that are heavily dependent on a single industry for economic prosperity, and some areas may not show the same level of amenity and access to essential services as a capital city or major centre."


Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Credit Union Australia, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.

Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site.

In the interests of full disclosure, Savings.com.au, Performance Drive and Loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees and costs savings, such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

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Alex joined Savings.com.au in 2019. He is passionate about providing Australians with the information and tools needed to make them financially stable for their futures.

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