Property prices up more than 30pc in parts of Tasmania, NSW

Property prices in the regions are still growing. Picture: Shutterstock
Property prices in the regions are still growing. Picture: Shutterstock

Regional property markets continue to outperform capital cities for capital gains according to the latest price growth figures, with one region clocking a 3.5 per cent increase in values in the last month alone.

Regional values recovered a 1.9 per cent rise over October, while capital city values were up 1.4 per cent, according to CoreLogic.

Both figures represent declines from the 2 per cent monthly growth rates witnessed earlier in 2021, though annual price growth continues to grow - a result of the stronger conditions experienced in early 2021.

"Over the past 12 months regional housing [house and unit] values are 24.3 per cent higher compared with a 20.8 per cent gain across the combined capital cities," CoreLogic research director Tim Lawless.

Regional Tasmania was the strongest area for capital gains, according to Mr Lawless, with housing values up 29.1 per cent over the past 12 months, followed by regional NSW (27.9 per cent) and regional Vic (23.4 per cent).

On a more granular level, the Southern Highlands and Shoalhaven region in NSW has emerged as one of the strongest markets in the country in the past 12 months, he said.

Values in the region surged by 3.5 per cent in the past month, 9.2 per cent over the quarter and a whopping 35.3 per cent in the 12 months to November.

Other NSW regions recording annual growth rates in excess of 30 per cent included Richmond-Tweed, up 31.5 per cent, and Coffs Harbour-Grafton, up 31.2 per cent.

In Tasmania, values in the Launceston-North East region increased by 30.7 per cent during the same period.

"The trend towards lifestyle markets located along the coastline and hinterland areas remains strong, pushing housing values higher as demand remains high and supply levels remain low," Mr Lawless said.

Despite the strong annual growth figures, Mr Lawless said that the expectation was for monthly growth to continue to fall in both the cities and regions, a result of increased listings and new housing construction.

"Combining these factors with the subtle tightening of credit assessments set for November 1, and it's highly likely the housing market will continue to gradually lose momentum," he said.

This story The regional property markets where prices are up more than 30pc first appeared on The Examiner.