Real Estate
29 August, 2024
Regional growth slows
Regional Queensland is in top spot for property price growth despite a general slowdown, as affordability constraints, normalising listing levels, and the elevated interest rate environment continue to impact growth.
CoreLogic’s Regional Market Update found regional markets recorded a 1.3 per cent increase in property values over the three months to July, compared to a 1.8 per cent rise in capital cities.
CoreLogic Australia Economist, Kaytlin Ezzy, said the pace of growth had eased from recent peaks, as normalising internal migration patterns cools demand for regional housing.
“The quarterly growth rate in regional dwelling values has slowed from a recent high of 2.2 per cent in April, to just 1.3 per cent in July,” she said “The capital cities have also seen a moderation in growth, albeit milder, from 2.0 per cent to 1.8 per cent over the same period,” Ms Ezzy said.
Growth trends across Australia’s largest 50 non-capital city Significant Urban Areas (SUAs) have become increasingly diverse, with 40 per cent of these regions recording a decline in values over the quarter, while 11 regions saw values rise by more than 3 per cent, Ms Ezzy said.
“As the higher cost of listing and high interest rates environment continues to put pressure on households balance sheets, it’s likely we’ll continue to see values and rents moderate in the coming months,” she said.
Despite the economic headwinds buyers and sellers still have a spring in their step.
CoreLogic analysis shows an average uplift of 18.2 per cent in fresh listings and 8.3 per cent for sales over the past decade, led by cities across the east coast.
Over the past 10 years Brisbane and the Moreton Bay region has seen a 7.6 per cent uplift in sales and a 10.6 per cent uplift in new listings.
Remax Living Woodford’s Chris Wease said there was still a very right supply of properties available.
In the first half of 2024 this led to high demand and strong competition.
“What is left of the third quarter of the year is looking very positive, with an increased volume of sales compared to the first half,” he said.
“Something to keep an eye on is that we are seeing an increase in stock levels with seller enquiry expected to further increase through the first few months of 2025, as many of the sellers bring their properties to market for the spring and lead up to Christmas. If this happens it may see a slight increase in days on the market.
“What does this mean for property owners? If you are thinking of selling now is the ideal opportunity, while there aren’t many properties to compete with. Waiting for roses to bloom in spring may not be the wisest idea.”
