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Signs The Boom In Regional Property Markets Is Coming Off The Boil

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Lifestyle real estate has been the most popular type of real estate since the outbreak of the pandemic, but now that restrictions have been relaxed, some data suggest that changes in trees and the ocean are less attractive. I am.

Immediately after COVID closed the city and forced workers to stay home two years ago, many decided that the future of work had changed radically and moved from the city to the rural areas of the country.

In addition, households could have a pandemic on overseas travel, many businesses and social activities were closed, and they could not spend freely, and households were willing to devote more of their income to housing. ..

It should be noted that the growing demand for lifestyle homes is spreading not only here, but throughout the developed world.

Demand for real estate across Australia remains strong, but there is some evidence that it has declined slightly in recent months. The reopening of the city and the return of the event may indicate that people remember why they lived in the metropolitan area in the first place.

In particular, the rental market is beginning to ease as supply increases and demand decreases. This may reflect the return of a lessor who is currently fully committed to the area to buy, or a lessor who has rented through a pandemic, back to the original metropolis.

Beautiful view of the field against the sunset sky of Dubbo.

There are some signs that the local real estate market boom is boiling.Photo: Getty


Take a look at the collection of the most sought after lifestyle areas across the country during a pandemic to see how trends in a particular area have begun to change.

The analyzed SA4 regions are Banbury, Coffs Harbor-Grafton, Giron, Gold Coast, Illawarra, Mornington Peninsula, Newcastle and Lake Macquarie, Richmond-Tweed, Southern Highlands and Shoalhaven, and Sunshine Coast.

These represent some of the regions that have recorded the largest increase in housing demand since the outbreak of the pandemic.

price

Each of the 10 regions has recorded price increases over the past year and prices have continued to rise, but have slowed in recent months.

In both cases, annual growth peaked at the end of last year.

Provisional sales volume

Banbury is the only region where sales increased in February 2022 compared to February 2021 and in the first two months of 2022 compared to the first two months of 2021. bottom.

The Southern Highlands and Shoalhaven (down 20.9%) and the Sunshine Coast (down 17.6%) are the biggest drop to date this year compared to last year.

Total list for sale

The volume and trends of properties for sale vary slightly, but in most cases the total number of listings increased from the end of last year to the beginning of this year.

The total number of properties for sale has generally decreased year-on-year, with a few exceptions, with Coffs Harbor Grafton (0.4%), Illawarra (2.2%) and Richmond Tweed (14.4%) increasing.

Number of days in the field

Real estate continues to sell rapidly in these markets, and the charts emphasize that most record a decline in the number of days on the premises for the year.

Please note that the February 2022 property was on the premises for slightly longer than a year ago in Illawarra and the Mornington Peninsula.

Demand by list

On a demand basis by list, demand is below peak in each of the 10 regions analyzed.

In many cases, demand per list peaked in January 2022 and declined in February 2022, but below the previous highs achieved in late 2021.

In addition, demand per list is down year-on-year in Geelong (down 3.8%), Illawarra (down 4.4%), Mornington Peninsula (down 4.1%) and Richmond Tweed (down 15.2%).

Median weekly rent

In most of the regions analyzed, rent growth has been strong over the past year, with Illawarra being the only region with rent growth of less than 10%.

Coffs Harbor Grafton (2.1%), Gold Coast (3.6%), Newcastle and Lake Macquarie (2%), and Sunshine Coast (2%) are the only regions that have recorded strong rent increases over the past three months, despite strong growth. .. 1.8%).

Total rental property

An important challenge for people migrating to rural areas was finding rental housing with historically low vacancy rates.

Supply remains tight in many regions, but total rentals in Geelong (5.7%), Mornington Peninsula (5.7%), Richmond Tweed (9.5%), Southern Highlands and Shoalhaven (7.8%) year-over-year Increased has. %), And the Sunshine Coast (13.8%).

Number of days in the field

Rental properties continue to grow rapidly across these regions, but in February 2022, only the Gold Coast, Illawarra, Southern Highlands and Shoalhaven had historically low days.

In fact, the Coffs Harbor-Grafton, Geelong, Newcastle and Lake Macquarie, Richmond-Tweed, and Sunshine Coast areas have longer on-site rental days than they did a year ago.

Demand by list

Rental demand also seems to have peaked in each of these regions, with demand per list below previous highs in all 10 regions.

In February 2022, demand per list was 12 months ago at Coffs Harbor Grafton (down 15.3%), Giron (down 1.5%), Mornington Peninsula (down 6.7%), Newcastle and Lake Macquarie (down 4.9%). Also became low. , Richmond Tweed (down 17.8%), Southern Highlands and Shoalhaven (down 13.7%), Sunshine Coast (down 15.1%).

Where are you from here?

Data show that the regional housing market is still recording significant increases in real estate prices and rents, and while demand remains strong, real estate is being bought and sold quickly.

However, as emphasized above, there is some evidence that many of these areas are not as hot as they used to be.

From the beach to the bushes, and everywhere in between, the area was booming during COVID. Part of the heat is weakening.Photo: Getty


Prices rose rapidly and many relative affordability in these regions became very attractive in the early days of the pandemic, but declined.

In addition, the resumption of metropolises and the return of normal lives are likely to slow the outflow of residents from metropolitan areas to rural areas.

Some people may find that the levels of amenities and lifestyles in the local market are very different from those in the city and have shifted due to the recurrence of the pandemic.

Demand is stronger in rural areas than in the capital this year, and prices are expected to rise sharply, but I think that the surge in new tenants for many people will slow down.

As shown here, the data show that these markets are generally not as hot as they used to be.

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