CoreLogic Australia’s latest quarterly report on the residential market in Regional Australia reveals that while growth remains strong in certain states, momentum is beginning to wane.
As seen in the last few quarterly updates, Western Australia and Queensland continue outperforming the rest of the country. Growth remains strong across these states. However, there are signs these markets are losing steam and may be close to their peak.
Top Regional Performers
Several regional areas recorded strong price growth, fast-selling properties, and robust rental increases. The standout performers include:
- Highest Annual Media Price Growth: Geraldton WA, with an impressive 32.2% increase to January 2025;
- Top 5 Markets for Quarterly Median Price Growth (Jan 2025)
- Geraldton WA – 6.3%
- Albany WA – 5.9%
- Mackay QLD – 5.7%
- Townsville QLD – 5.1%
- Gladstone QLD – 4.3%
- Fastest Selling Locations: Properties in Gladstone Rockhampton (QLD), and Busselton (WA) spent an average of 12 days on market.
- Strongest Rental Growth:
- Quarterly: Busselton, WA – 4.6%
- Annual: Geraldton, WA – 13.8%
- Tightest Rental Market: Warrnambool, VIC, recorded the lowest vacant rate at 0.3%
Cooling Markets
Not all regional markets are continuing their upward trajectory. Regional NSW and VIC, which experienced exceptional growth during the Covid years of 2020 – 2023, are now seeing weaker conditions.
The weakest-performing market this quarter include;
- Largest Quarterly Decline: Ballina, NSW, with a fall in median price of 2.8%;
- Largest Annual Decline: Ballarat, VIC, with a 4.9% fall over the past 12 months;
- Slowest Selling Market: Bowral-Mittagong region in NSW, with an average of 74 days on the market;
- Weakest Rental Growth:
- Quarterly: Batemans Bay, NSW, with a 0.6% decline
- Annual: Ballarat, VIC, with just a 2.1% increase;
- Highest Vacancy Rate: Dubbo, NSW, recorded a rate of 3.7%, signalling rising rental availability.
It will be interesting to monitor the performance of Regional markets across Australia after the recent drop in interest rates, especially given the lift in sales activity in the metro markets.