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RESIDENTIAL PROPERTY

The new 33 regional hot spots

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A SEARCH for more affordable real estate has seen regional locations throughout Australia drawing new residents from the capital cities, with 33 places identified as having higher population growth than the capital cities that came in below the 1.6% national average.

Analysis of ABS data by Propertyology showed Regional Australia’s population increased by 77,740 people over the 2017 financial year. Around 37,900 people moved away from Sydney over the past two years, while 10,899 left Perth, 12,669 from Adelaide, 2,988 from Darwin.

Propertyology’s head of research, Simon Pressley said there’s a pull-and-push force that will see the trend continue.

“Expensive housing, resistance towards overseas migration by some people, and congestion appear to be pushing around 20,000 people per year away from Sydney, while a lack of jobs appears to be pushing others away from Perth, Adelaide and Darwin,” he said.

“At the same time, greater appreciation for regional lifestyles is pulling others towards wonderful inland and coastal locations outside of capital cities. Housing is very affordable and, contrary to what many think, job prospects are available.

“Obviously, it’s a big decision for one to pack up the household and move but tens of thousands of people did that,” Pressley said.

That has translated to house price growth across regional Australia, according to CoreLogic data released this month. In quarterly terms, national dwelling values fell by 0.5%, driven by a 0.8% drop across the capital cities, while regional markets posted a 0.6% rise.

Melbourne values fell 1.4%, followed by Sydney (down by 0.9%), Darwin (by 0.8%) and Perth (by 0.7%).As well as Hobart, value increases were seen in Adelaide by 0.9%, Brisbane (by 0.3%) and Canberra (by 0.2%).

In that period, moderate price falls in values were seen in regional Queensland, of 0.2%, and regional Western Australia (0.1%). Prices in regional Victoria’s grew by 1.8%, and by 1.7% in regional Tasmania.

CoreLogic’s annual figures to May showed home prices in regional centres were up by 0.2% over May and by 2.2% year-on-year, and are likely to see continuing modest growth. The average gross rental yield for regional areas is 4.9%, above the 3.4% in the capital cities.

As a proportion of total population growth over the 2016/17, the biggest beneficiaries of interstate migration were Tasmania, with 22.5% and Queensland, with 21.9%.

Notably, only 846 of the 17,246 internal migrations to Queensland in 2016/17 relocated to Brisbane (Australia’s largest city council). Most went to the Gold Coast, Sunshine Coast, Moreton Bay, Cairns, Ipswich and the Scenic Rim, according to the Propertyology.

In 2016/17, overseas migration contributed 84,684 out of 101,754 total population growth to Sydney, and 79,747 out of 123,362 people to Melbourne.

Capital cities that came in under the under growth of 1.6% in the period included Darwin, at 0.5%, Adelaide (0.7%), Perth (1%) and Hobart (1.1%).

There 33 locations that exceeded those growth figures, in alphabetical order, included: Albury, Armidale, Augusta-Margaret River, Ballarat, Ballina, Bass Coast, Bathurst, Baw Baw, Bendigo, Byron, Cairns, East Gippsland, Fraser Coast, Gold Coast, Gold Plains, Griffith, Huon Valley, Lockyer Valley, Lower Eyre Peninsula, Macedon Ranges, Maitland, Mildura, Mount Barker, Port Macquarie, Queanbeyan, Scenic Rim, Shepparton, Sunshine Coast, Surf Coast, Tamworth, Warrnambool, West Tamar, and Wodonga.

Capital city internal migration – existing Australian residents relocating away from one jurisdiction to another – over 2016/17 was led by Melbourne’s Monash, with 3,424, followed by Brimbank (2,312), Dandenong (2,311), and Whitehorse (1,648).

Key Sydney locations in this list included Canterbury-Bankston with 3,404 people leaving, Cumberland (3,281), Randwick (2,984), Georges River-Kogarah (1,969), Inner west/Leichardt (1,918), Fairfield (1,814) and Parramatta (1,625).

Port Adelaide Enfield (1,125 leavers) and Salisbury (1,016) led Adelaide locations, while in Perth it was Stirling (3,148), Canning (2,227) and Joondalup (2,183) before a big gap to Gosnells and Bayswater, while 1,597 people left Darwin city council.

Australian Property Journak