In the May 2023 edition of the Last 30 newsletter, I previously highlighted the Covid induced boom for housing had slowed dramatically in the previous 12 months. Recently, CoreLogic Australia released their Regional Market performance report for the previous 3 months to July 2023.
This report shows that most regional markets have reverted to pre-Covid levels of sales activity, which is down 21.3% from this time last year. After some dramatic falls over the past 12 to 18 months, it appears that property values are now stabilising.
Key insights from this market update include:
Largest Value Decreases in the Last 12 Months:
- Richmond-Tweed, NSW (including the prominent centre of Byron Bay) (-20.4%);
- Southern Highlands and Shoalhaven, NSW (-15%);
- Ballarat, VIC (-11.2%);
- Geelong, VIC (-10.4%)
Largest Value Increases Over the Last 12 Months, which have been much more subdued:
- Bunbury, WA (3.7%);
- Central, QLD (2.7%);
- New England and North West, NSW (1.6%);
- Mackay – Isaac-Whitsunday, QLD (1.2%)
As we move well into the second half of 2023, there is an expectation that activity in regional markets will remain subdued in comparison to the stronger markets, we are currently seeing in the major metro centres across Australia.
Market Snapshot
The weekly auction market has strengthened again in August with increased listings across the combined capitals not deterring buyers. According to CoreLogic Australia data the week ended 3 September 2023 saw the fourth busiest week of the year to date and the busiest week since before Easter. As we move into Spring expectation is that listings will spike in the next 4-6 weeks.
Auction results for week ended 3 September 2023 (courtesy of CoreLogic Australia) are as follows:
- Melbourne –69.3%
- Sydney – 73.8%
- Brisbane – 66.7%
- Canberra – 62.3.6%
- Adelaide – 82.8%