CoreLogic’s Regional Market Update, which examines Australia’s 25 largest non-capital city regions, revealed six regional housing markets that have posted declines of 6% or more last quarter.

Despite recording the strongest value growth through the pandemic upswing, these regional markets are now among the fastest declining regions.

They include Richmond-Tweed, -11.7%; Southern Highlands and Shoalhaven, -7.1%; Sunshine Coast, -7.1%; Gold Coast, -6.4%; Illawarra, -6.1%; and Newcastle and Lake Macquarie, -6.0%.

While all markets anaylsed recorded a quarterly decline in house values, Central Queensland (+0.1%), SA’s South East (0.0%), and WA’s Bunbury (0.0%) were the exceptions. 

In terms of annual value growth, the South East region in South Australia was the best performing regional house market increasing by 21.7%, followed by Riverina and New England and North West with 20.5% and 19.8% respectively.

CoreLogic Economist Kaytlin Ezzy said constraints to buyers’ hip pockets have contributed to declining house values.

“Consecutive interest rate rises, persistently high inflation, and waning consumer sentiment saw the pace of value declines accelerate across regional Australian property markets,” Ms Ezzy said.

“Throughout the Covid period, values skyrocketed in the Richmond-Tweed region, rising more than 50% and taking the median house value to more than $1.1 million.

“However, the impact of this year’s floods coupled with seven consecutive rate rises has seen house values fall in the region by nearly -16% since April.”

PropTrack Senior Economist Eleanor Creagh said regions that were in high demand during the pandemic have seen home prices falling the fastest.

“It’s often the case that the upper end of the market experiences larger price declines, and at the moment it's the regions and suburbs that are home to more expensive properties that are seeing bigger price falls,” Ms Creagh explained.

“Covid favourites including the Sunshine Coast and Geelong have also seen prices falling further from their peak than many other regions.”

Are units following the same trend?

Out of the 16 regions analysed, 14 saw a quarterly fall, more than double the number of regions that declined in values over the three months to July.

The Southern Highlands and Shoalhaven and the Sunshine Coast recorded the largest quarterly falls in unit values with -7.7% and -6.0% respectively. 

When comparing annual unit values, Cairns and Toowoomba posted the highest annual increase in unit values up 18.9% and 17.4%.

“While unit values have not been immune to the downturn, units have largely been more resilient than houses through the downswing to date,” Ms Ezzy said.

“If this trend of house values falling at a faster pace than unit values persists, we could see some demand shift towards the detached segment as the value premium for houses shrinks.”

What does the future hold for the regional property market?

Ms Ezzy said the outlook for regional markets remains skewed negatively, with values expected to continue declining.

“The lack of a typical spring listings surge is positive, in that we are yet to see material signs of a rise in distressed listings,” she said.

“However, as the cumulative rise in the cash rate approaches the serviceability buffer of 3% which most borrowers were assessed under, we could see an increasing number of regional home owners come up against affordability pressures in terms of mortgage serviceability.”

See Also: When will the house price plunge hit?


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

Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
6.06% p.a.
Principal & Interest
Featured Online ExclusiveUp To $4K Cashback
  • Immediate cashback upon settlement
  • $2,000 for loans up to $700,000
  • $4,000 for loans over $700,000
5.99% p.a.
5.90% p.a.
Principal & Interest
Featured Apply In Minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
6.14% p.a.
6.16% p.a.
Principal & Interest
Featured Unlimited Redraws
  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Image by Michael via Unsplash

Ready, Set, Buy!

Learn everything you need to know about buying property – from choosing the right property and home loan, to the purchasing process, tips to save money and more!

With bonus Q&A sheet and Crossword!

By subscribing you agree to our privacy policy