Gold Coast skyline
REGIONAL property markets are the “new black’’ with a leading property expert predicting demand will continue to lift.
The latest McGrath Report revealed Australia’s leading regional hubs, the Sunshine Coast, Gold Coast, Geelong and Newcastle were undergoing significant price growth on the back of strong demand.
McGrath executive chairman John McGrath said improved infrastructure had made commuting times faster between regional areas and capital cities and when coupled with the NBN rollout making access to technology better, these regions had become even more appealing to buyers.
John McGrath says regional property markets are the “new black”
“Massive infrastructure investment across Australia is also boosting employment in regional centres,’’ he said.
Geelong was identified as the best performing regional city with its median house price up by 9.8 per cent in the past 12 months.
Despite that, its median house price of $505,000 was still $200,000 cheaper than Melbourne’s.
In New South Wales, Shoalhaven and Southern Highlands was the strongest performing regional market with 9.2 per cent growth, followed by Newscastle up 7.2 per cent.
In Queensland the top regional performer was the Sunshine Coast where the median price was up by 5.2 per cent and the Gold Coast which was up 1.9 per cent.
Median prices on the The Gold Coast are up 1.9 per cent, according to the latest McGrath report
Mr McGrath said an influx of buyers from interstate had really driven the Sunshine Coast and Gold Coast markets.
Population figures were rising in the regions. Lake Macquarie in New South Wales took 5500 new residents from Sydney and Geelong took 6900 from Melbourne.
Seven of the top ten regions to benefit from Brisbane residents moving in were beachside locations, the Gold Coast gained an extra 8800 and the Sunshine Coast 6700.
This house at 8 Cottonwood Ct in Noosa Heads is on the market.
“The Gold Coast seems to have magnetic appeal, as it was among the top ten destinations chosen by city escapees in every single state and territory, attracting 19,400 people from eight capitals,’’ Mr McGrath said.
He said the regions which attracted the most interest were those within a “90 minute arc’’ of the major capital cities.
Mahala, a 25-storey high-rise tower by developer Pinda, is just one of many new residential developments on the Gold Coast.
“While affordability remains a key reason to move, many (agents) say buyers are increasingly talking about escaping from city stress, traffic and cost of living,’’ he said.
“Sydneysiders are thinking I’ve got a $3 million house, I’ve got no money in my bank, what can I do. We are seeing an increased migration back up to southeast Queensland, which was similar to before the GFC when we did see a constant stream of people heading north and I think we are going to see that more courtesy of the higher values in Sydney and Melbourne.’’
“Affordability will be the key driver for many to start thinking about shifting out of the metro market. They take a trip to Toowoomba or the Sunshine Coast and they see what they can get and then they remind themselves of the lifestyle available there, arguably in some instances, it’s half the price.’’
Mr McGrath said while many were keen to relocate to an affordable regional area it had to have the facilities for them to take the step.
“They generally don’t want to be too far away or too inaccessible.’’