Australian Regional Home Values Dip as Market Slows

Regional dwelling values in Australia decreased by 0.1 percent in the three months ending in July, according to data from Cotality. While this decline is less severe than the 2.5 percent drop recorded in capital cities during the same period, the data indicates a broad cooling trend. Forty-seven of 50 examined regional areas saw weaker growth rates, and 22 experienced actual value contractions.

Head of Research Gerard Burg attributed the slowdown to interest rate hikes and tax changes that have reduced investor activity. He noted that while regional markets previously outperformed capital cities, they are now being impacted by the broader market slowdown, though relative affordability continues to support some internal migration from cities.

Regional New South Wales and Victoria reported the weakest conditions, with properties remaining on the market longer. In New South Wales, Bowral-Mittagong and Batemans Bay saw median time-on-market figures of 86 and 70 days, respectively. In contrast, Western Australia and South Australia showed the strongest price increases. Some inland regions in New South Wales remained resilient, with Dubbo recording a 3.9 percent rise over the last quarter and a 19.5 percent increase over the past year.