Australians to swap city units for country house – causing regional home prices hit to record highs

Australians swap cramped city units for a country house near the beach- causing regional home prices hit to record highs

  • Home prices have reached record highs in 11 regional areas in September 2020
  • Median unit prices in Sydney, Melbourne down by five per cent since late March 
  • CoreLogic’s Tim Lawless said working from home boosted regional price rises 

Australians are ditching cramped city apartments for a house in the country as bosses allow more people to work from home.

Since March, Melbourne unit prices have plummeted by 5.5 per cent as Sydney’s equivalent median value for apartments has dropped by five per cent.

While property prices have fallen in Australia’s biggest cities, the story is very different in 11 regional areas where home prices have reached record highs, a CommSec analysis of CoreLogic data showed. 

CoreLogic head of research Tim Lawless said the ability to work from home and live in a house rather than an apartment had boosted regional home prices.

Australians are ditching cramped city apartments for a house in the country as bosses allow more people to work from home. Since March, Sydney’s median apartment price has dropped by five per cent. Pictured is the troubled Opal Tower at Sydney Olympic Park

‘Remote working arrangements are no doubt a factor in supporting demand in these markets but lifestyle opportunities and a desire for lower density housing options are also playing a part,’ he said.

‘Anecdotally, we are also observing a transition of demand away from the cities towards the major regional centres, particularly those that are adjacent to the larger capitals where residents can commute back to the cities if required.’

The Richmond-Tweed area of northern New South Wales, a 90-minute drive from Brisbane across the Queensland border, has a median property price of $594,987.

That is marginally more than Melbourne’s median apartment price of $558,952 and significantly less than Sydney’s mid-point unit value of $743,288, CoreLogic data for September showed.

The Richmond-Tweed area of northern New South Wales has a median property price of $594,987. For little more than $600,000 it is possible to buy a house (view pictured) at Tweed Heads with views of a canal

The Richmond-Tweed area of northern New South Wales has a median property price of $594,987. For little more than $600,000 it is possible to buy a house (view pictured) at Tweed Heads with views of a canal

For little more than $600,000 it is possible to buy a house at Tweed Heads with views of a canal. 

Regional markets setting price records

Gold Coast, Queensland: $559,808

Richmond-Tweed, northern New South Wales: $594,987

Coffs Harbour-Grafton, NSW Mid-North Coast: $477,089

Lauceston, northern Tasmania: $346,790 

Source: CommSec analysis of CoreLogic data showing median property prices for September 2020 

The neighbouring Gold Coast’s median property price stands at $559,808.

For marginally more than that, a duplex house can be bought for $649,000 at Reedy Creek a short drive from the beach at Burleigh Heads.

Regional house prices are continuing to climb as Sydney and Melbourne struggle.

Sydney’s median house price in September fell for the fifth straight month, sinking 0.2 per cent to a still-expensive $983,262.

Melbourne’s mid-point house value dived by 0.9 per cent to $780,836 – the sixth consecutive month of decline.

Provincial capital cities, however, are continuing to set price records.

Adelaide’s median house price rose 0.8 per cent in September to $486,943 while Hobart’s mid-point value for a home with a backyard increased by 0.6 per cent to $519,092. 

Canberra’s equivalent house price edged up 0.2 per cent to $723,634. 

Brisbane’s middle house price was up 0.4 per cent to $559,646 as records were set in the city’s east and Moreton Bay. 

Mr Lawless said that unlike regional centres, Sydney and Melbourne had been more reliant on immigration-driven population growth before the COVID-19 pandemic.

‘From a cyclical perspective, regional areas weren’t recording the same growth conditions pre-COVID, so home values in these markets are often more affordable and don’t have a high base to fall from,’ he said. 

The Gold Coast's median property price stands at $559,808. For marginally more than that, a duplex house can be bought for $649,000 at Reedy Creek a short drive from the beach at Burleigh Heads

The Gold Coast’s median property price stands at $559,808. For marginally more than that, a duplex house can be bought for $649,000 at Reedy Creek a short drive from the beach at Burleigh Heads