Housing demand pivots from capital cities to regional Australia

It’s no secret there’s a seismic shift in the nation’s housing market with demand for capital city houses and apartments pivoting towards regional Australia.

Rural markets produced a drop in typical days on the market during September, to 57 days down from 59 days in the three months to March, according to CoreLogic research.

It’s no secret there’s a seismic shift in the nation’s housing market with demand for capital city houses and apartments pivoting towards regional Australia.

Rural markets produced a drop in typical days on the market during September, to 57 days down from 59 days in the three months to March, according to CoreLogic research.

Previously, regional properties sat on the market for an extra 19 days compared to city properties.

Sydney properties took 36 days to sell in the September quarter, while regional NSW properties took 57 days. The Lane Cove local government area had the highest number of days on the market at 63 days in the months to September, CoreLogic says.

In Melbourne, the amount of time a house or unit was on the market jumped six days between March and September. CoreLogic says this was not surprising given the slowdown in transaction activity during the coronavirus restrictions.

“(But) across regional Victoria, typical days on market fell by 5 days, to 43 days, signalling tighter conditions, and higher demand than in the lead up to COVID-19.”

On Queensland’s Gold Coast, the number of days on the market climbed from 43 to 49 in the three-month period, however, the numbers are still well down year-on-year.

In Adelaide, the typical days on market fell by two when comparing the March and the September quarters.

Despite the pandemic, Perth’s sales volumes are rising and new listings volumes increasing to meet demand. “Median days on market have contracted to 40 days through to September, compared with a five-year average of 52 days,” CoreLogic says.

Hobart recorded the lowest days on market of any capital city or regional area since September 2016. But from March to September, the city has seen the largest increase in typical days on market of the capital cities. Median days on market rose by 18 days, to 27.

As for Darwin, it is a buyer’s market, producing the highest median days on market of any capital city in the three months to September at 56, CoreLogic says.

In the ACT, the strong demand for houses produced a shrinkage in days on the market to 36, from 48.