Dont forget the regional areas

With a great deal of focus on the nation’s capital cities housing markets, this week we turn the focus on each State’s largest regional markets to provide an insight into how these areas have performed in terms of housing values.

Outside the capital cities of each state, the largest municipalities are home to almost 2 million people. With such a large population base, the residential property markets in these regions are expansive and growing in size. These regions often provide even greater diversity in housing stock than found in the capital cities. The urban form ranges from typical metro housing to beach homes, large acreage properties, hobby farms and wineries. Each of the regions border a capital city boundary, so it is understandable that more and more people are viewing these more affordable housing markets as an alternative to living within the capital city metro area. Some residents may choose to commute into the capital city depending on transport connections, or these regions of course have their own economies and employment opportunities.

In New South Wales, the largest region outside Sydney is the Hunter area which is located directly north of Sydney and south of the Mid North Coast and is home to around 590,000 people. The major regional centres of Newcastle, Lake Macquarie and Port Stephens are located within the Hunter region, as are some of the most prestigious Australian wine regions. Median house values in the area are currently sitting at $310,000, which is about $245,000 lower than the Sydney metro median value. Over the last calendar year house values have fallen by 5%, after peaking in early 2008 at $328,000.

The second largest region in Victoria is the Barwon Statistical Division which has a population of about 260,000 residents. Barwon is located immediately West of Melbourne and includes council areas such as Greater Geelong, Surf Coast and Colac-Otway. House values in the region have been very resilient, falling by just 0.2% over the last 12 months to record a current median value of $294,000. House values in the region are almost $150,000 lower than house values in the Melbourne metro area where values are down 2.1% over the year.

In Queensland, the Gold Coast is the largest region outside of Brisbane. The Gold Coast has long been famous for its beaches and tourism, however over the last few decades the Gold Coast has established the largest office precinct outside of Brisbane and significant industrial estates creating a very large working population. Around 500,000 residents call the Gold Coast home and the region is one of the fastest growing in the nation. Median house values on the Coast have historically been about 25% higher than Brisbane values, largely due to the abundance of waterfront stock. At the end of 2008 Gold Coast house values were about $92,000 higher than Brisbane house values. Over the last year the Gold Coast market has been hit harder than most with values falling by 8%.

In South Australia the largest region outside Adelaide is Outer Adelaide with a population of about 125,000 people. The region wraps around the Adelaide metro area and includes the Fleurieu Peninsula, Mount Barker which is fast becoming a satellite city of Adelaide and the wine regions of Barossa and parts of the Adelaide Hills. House values in the region have not experienced as great an increase as the Adelaide metro, however over the last twelve months median values are up by 4.8% to reach $325,000; almost $90,000 lower than the Adelaide metro median house value.

The South West of Western Australia is the second largest region in the state after Perth. This expansive region borders the Perth metro area to the south and extends from Mandurah south to Manjimup, including the coastal areas of Bunbury and Busselton and the wine regions around Margaret River. House values have trended in line with the Perth metro market, with values recording very strong growth between 2003 and the end of 2006 but falling by 9.2% over the 2008 calendar year. The median house value in the region is now $345,000, which is about $130,000 lower than Perth metro values.

In Tasmania the largest region outside Hobart is Launceston. Actually, in population terms the Launceston council area is larger than Hobart with a population of around 63,000 people compared to 48,000 people. House prices in the Launceston Council area are down $20,000 or 8.3% over the 2008 calendar year. The median house price peaked in the first quarter of 2008 at $245,000 and has since fallen to $220,000 which is about $80,000 lower than the median house price in Hobart.

Even though the medium prices in the regional areas are not as high as capital cities, especially the Hunter, there are some great buying to be done. With an average of 6% yield on investment, investors would be best looking to the regional areas for property. Values have not fallen as far as the capital cities, so capital growth over the longer period is more stable.

If you are looking to buy, sell rent or have a property managed, or even your strata plan managed, give us a call ……you might be surprised what we can do for you without the high costs associated. Take a look at some well priced properties www.nobullrealestate.com.au/properties.php

RP Data Sourced