Regional property markets were outperforming capital city markets earlier in the year, but now the situation has flipped, due in part to shifting population trends.
The combined regions experienced a median price increase of 1.3% in the July quarter, compared to 1.8% in the combined capitals, according to CoreLogic.
By comparison, in the April quarter, prices rose 2.2% in the regions and 2.0% in the capitals.
“Affordability constraints, normalising listing levels and elevated interest rates have seen the pace of growth ease from a recent peak across both markets. Additionally, demand for regional housing has eased as internal migration to the regions has slowed back to more normal levels,” CoreLogic said.
Of the 50 largest regional markets, 20 experienced price declines during the July quarter – all of which were located in New South Wales and Victoria. The strongest regional market right now is Queensland, followed by Western Australia.
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