As the global pandemic continues to impact property prices and home-buyer behaviour, mortgage brokers across Australia are dealing with new demand as property markets in regional centres attract incredible interest from potential buyers keen to explore house prices beyond the major city centres.
With prices in many regional destinations rising at double the rate of capital city medium property growth, it’s an exciting time to see the shifts in this new slice of the mortgage market.
In New South Wales, interest in the Northern Rivers region is proof that warmer weather and a more relaxed lifestyle is luring a new generation of southern state buyers keen to access more brick (and land) for their property investment buck. In Byron Bay, prices have risen by nearly 40 per cent in the last twelve months, with the broader Northern Rivers region showing growth of around 20 per cent.
While initial interest during the early days of the 2020 pandemic saw owner-occupiers keen to buy into the area and embrace the shift towards working from home, 2021 is shaping up to show that a growing number of investors are currently responsible for the ongoing buyer interest.
Australian regional property markets to watch
Elsewhere across the country, a similar trend is evident in Geelong where property values are still climbing and figures show values just 10 per cent below Melbourne’s. Five years ago, Geelong property prices were 27 per cent below Melbouren’s but, as more and more people realise that working from home opportunities gives them the freedom to live a coastal lifestyle in a nearby regional centre, it is a value climb that is set to keep evolving. In Queensland, the pattern is being repeated in the property markets of the Gold Coast and Sunshine Coast, which, according to this latest CoreLogic data, are currently sitting at 14 per cent and 32 per cent higher than Brisbane values.
Impact on renters
The changes to regional demand has a flow-on effect for renters in regional property markets, as CoreLogic reports a tripling in annual rental growth rate outside of Australia’s major capitals.
Although both Melbourne and Sydney have vacancy rates sitting steadily around 3 per cent, rates in popular regional centres are substantially lower, rates are much lower, as numbers of renters exceeds the availability of rental properties on the market.
Potential for short-term gain in what used to be long-term markets
For investors with the available funding that enables them to take advantage of this regional growth, there are still opportunities for snapping up well-priced properties outside of our major cities and flipping them in a market that shows every sign of continued growth in the immediate future.
To ensure your investment strategy is right for you, speak to your accountant or financial advisor and, for accurate information about how to access a home loan to suit your needs, talk to our home loan brokers in Melbourne at Lending Specialists today.
Lending Specialists is the leading mortgage broker in Melbourne with over 40 years of experience. Our team consists of highly-qualified home loan brokers and business finance brokers. Our clients come from all across Melbourne, including Ringwood, Rowville, Mitcham, Boronia, Wantirna, Scoresby, Knoxfield, Bayswater, Vermont, Croydon, Nunawading and more.