REGIONAL property markets are experiencing a slowdown in price growth as affordability constraints, normalising listing levels, and the elevated interest rate environment continues to impact growth, according to property data and analytics provider CoreLogic.
In CoreLogic’s latest regional market update, dwelling values increased by 1.3 per cent over the three months to July, compared to a 1.8 per cent rise in capital cities.
Dwellings in the Mildura-Buronga region decreased by 0.7 per cent for the quarter, but still maintained a 3.1 per cent annual increase with a median house value of $420,723.
The five-year change in house values stood at 48.4 per cent.
Mildura-Buronga region rental values continued to rise at 2.5 per cent for the quarter to a median rental of $449 a week, an annual increase of 7.8 per cent and five-year hike of 33.1 per cent.
The number of annual house sales to May this year at 990 was down by 4.3 per cent compared to the previous 12 months with time on market increasing to 34 days compared to 23 days in the 12 months to May 2023.
CoreLogic Australia economist Kaytlin Ezzy said the pace of growth has eased from recent peaks as normalising internal migration patterns cools demand for regional housing.
“The quarterly growth rate in regional dwelling values has slowed from a recent high of 2.2 per cent in April to just 1.3 per cent in July,” she said.
“The capital cities have also seen a moderation in growth, albeit milder, from 2.0 per cent to 1.8 per cent over the same period.”
She noted, however, that growth trends across Australia’s largest 50 non-capital city significant urban areas (SUAs) had become increasingly diverse, with 40 per cent of those regions recording a decline in values over the quarter, while 11 regions saw values rise by more than 3 per cent.
Ms Ezzy said that over the three months to May, just eight markets recorded quarterly declines in values. That number has since more than doubled, with 20 of the 50 largest SUAs now recording falls over the three months to July.
“As the higher cost of listing and high interest rates environment continues to put pressure on households balance sheets, it’s likely we’ll continue to see values and rents moderate in the coming months,” she said.
