Many of Australia’s regional property markets are booming right now.
CoreLogic’s latest Regional Market Update found that the 25 largest non-metro markets collectively achieved a record increase in house prices over the year to October.
Of the 25 regional markets analysed:
- All but one of the markets enjoyed house price growth of at least 10%
- More than half experienced growth of more than 20%
- Seven of the markets grew more than 30%
CoreLogic research director Tim Lawless said there were several reasons for the regional boom, including affordability and lifestyle concerns.
“There has been a broad demographic shift where more Australians are prepared to consider housing options outside of the capital cities, which has seen net internal migration rates to regional Australia reach record highs,” he said.
“Working from home looks to have some degree of permanency post-COVID and is one of the catalysts of this trend, with more people basing themselves in regional locations to work remotely or balancing office work with home working.”
The move to the regions has been a long-term trend
Meanwhile, the most recent edition of the Regional Movers Index, which is a quarterly report from the Regional Australia Institute (RAI) and Commonwealth Bank, reported an 11% increase in the number of Australians moving from capital cities to regional locations between the June quarters of 2020 and 2021.
Crucially, while many people have moved from metro to regional locations during the pandemic, this has actually been a long-term trend.
In recent decades, “more people have been moving from Australia’s capital cities to regions than in the opposite direction”, according to the RAI.
The importance of investing with an open mind
That’s why Investors Dream has always invested in regional locations, even before the pandemic.
That said, Investors Dream has also bought properties in the capital cities.
When you’re investing, the key is to look at the entire country with an open mind. You should choose the location with the greatest long-term potential, whether it’s a metro location or a regional location.
Right now, if you know where to look, there are some select regional markets where you can find affordable, cashflow-positive properties with long-term growth potential.