An in-depth report from realestate.com.au paints a compelling picture of a recent mass exodus from cities.
The REA Insights Regional Australia Report 2020 analyses regional property markets around the country, exploring the twin factors that emerged through COVID-19 and have accelerated the population growth in regional Australia.
The first is the resurgence of the mining sector and the second is the move towards remote working situations that remove geography from the housing equation – or rather, change the desirability of where ‘home’ is located, with proximity to a city office no longer of the same level of concern.
“The strength in mining is being driven primarily by the stimulus that
the Chinese Government has deployed to get their economy moving again, as well as the impact of COVID-19 on other mineral producing countries,” the report notes, pointing out how Brazil’s iron ore industry was crippled through COVID-19, leading to record high prices, and Australia exporting record levels of iron ore.
Gold and copper mining has also surged during the pandemic.
“Any regions that have economic growth closely tied to these strong performing minerals are seeing a flow on to house price growth,” the report reads.
“Mining towns such as Orange and Karratha are seeing strong demand off the back of a resurgence of the mining sector while areas such as New South Wales Mid North Coast appear to be benefitting from people looking to make a lifestyle change,” Nerida Conisbee, realestate.com.au Chief Economist and author of the report explains.
“Prior to COVID-19, fringe cities were benefitting from population growth and affordability and that trend has continued to accelerate. The biggest change occurring is the rising popularity of areas that are not within commuting distance to a CBD.
“Over the last 20-years, beachside areas have become more attractive, which has resulted in significant price growth. The strongest performing regional town over the same time period is Bangalow, near Byron Bay, which has seen its median house price increase more than 1200 percent from $76,025 in 2000 to $1.05 million in 2020.”
Bangalow, Thirroul, and Bulli (all in NSW) are the most in-demand suburbs in Australia, with an average of a whopping 10,000 views per listing on realestate.com.au.
Accordingly, Bangalow has also had the strongest price growth in Australia over a 20-year period, with an average rise of 1,281 per cent.
Southern Highlands, Shoalhaven and South East Tasmania have experienced the biggest price growth in the country over the last five years.
Canberra’s demand has more-than-doubled in the six-months to end of September.
Check out more insights from the report below, or view the report here.
Areas benefitting from the regional shift:
Victoria –Â Geelong, Bendigo, Ballarat, Latrobe-Gippsland, Warrnambool and the South-West, Mildura and Wodonga
New South Wales –Â Illawarra, Southern Highlands and Shoalhaven, Hunter Valley, Central West (particularly Orange) and coastal areas from Mid North Coast up to the Queensland Border
Queensland –Â Gold Coast, Sunshine Coast, mining regions (excluding coal)
Western Australia –Â Mandurah, Margaret River region and mining regions
South Australia –Â Port Elliot and surrounding region, Mount Gambier and the South-East
Tasmania –Â Launceston and the North East
