Regions Outperforming Capitals

While home price growth has softened across Australia in the past month, values in almost every capital city are still well above the level at the same time last year.

PropTrack’s latest data shows that in June all capital cities recorded a decline in median house price with all drops below 1%. Over the past 12 months, the only capital city to record a drop is Melbourne which is down 1.1%.

It is the regional markets that continue to perform well, with all but one (regional Queensland, down by 0.1%) showing growth in June – albeit all below 1%. Regional markets are all well up on the same time last year.

PropTrack senior economist Anne Flaherty says regional markets remained at record highs during June and over the past 12 months.

Regional Western Australia has the strongest growth over the past 12 months of 16.9%, followed by regional Tasmania (13.6%), regional South Australia (12.7%), and regional Queensland (11.5%).

“Looking ahead, affordability is likely to remain a key driver of market performance, with the share of buyers looking to purchase in more affordable areas, such as regional markets, expected to increase,” Flaherty says.