Strength in regional property prices, sale numbers power ahead
The number of homes selling for $2m or more in towns like Ballarat and Toowoomba is still elevated, the latest PropTrack data shows.
As the worst of the pandemic becomes a bad memory, the appeal of regional Australia has not abated and country locations are showing considerable demand.
Sales at the top end of the market have been consistently rising each year since 2019 and the value of those deals has also risen.
PropTrack data shows the number of homes sold for $2m or more in Victoria’s Ballarat, Queensland’s Toowoomba and the Southern Highlands in NSW, has jumped since the onset of Covid-19.
PropTrack senior economist Paul Ryan said the flight from major cities that occurred through the onset of the pandemic had been beneficial to these regions, and while some of the demand had abated, they were still attracting so-called “treechangers”.
“Anecdotally, we’ve seen it come off, but levels are still much higher than pre-pandemic and these numbers suggest that prices are up,” Mr Ryan said.
“This data supports the idea that these flows are still strong.
“It’s what we expect; there are just a lot more people that can work remotely and work from these very nice, pleasant locations and that will just increase the interest in these places permanently.”
In Ballarat, Jellis Craig Ballarat Rebecca Stepnell said treechangers were still making a move to the regional city 116km west of Melbourne.
Sales above the $2m dollar mark have almost trebled there since 2020, jumping from four transactions to 15 last year. The average price of these sales increased from $3.563m to $7.596m over the same period.
“Treechangers come to a region like Ballarat because we've got fantastic schooling and healthcare systems too,” Ms Stepnell said
Ms Stepnell described a double brick home on the market with established gardens overlooking Lake Wendouree as “a true representation of Ballarat history”.
Built in the 1920s by architect Herbert Leslie Coburn, the two-storey home has been restored by the owners to capture the era. They retained the original terrazzo floors and ornate design features. The property at 346 Wendouree Parade is listed with a price guide of $2.65m.
The Southern Highlands in NSW has benefited from a boost in activity since the Reserve Bank held interest rates this month for the first time in a year, said The Agency’s Ben Olofsen.
Sales over $2m had surged in the region from 16 in 2019 to 119 four years later and the average price was around the low to mid $4m mark. Turnover was highest in 2021 as the pandemic housing boom peaked, when 168 homes changed hands.
While noting that $2m sales occur regularly in the region southwest of Sydney, Mr Olofsen said there recently had been several deals around $10m.
“Transactions and activity has tripled since the interest rate pause,” he said. “We were expecting that to happen and it has been realised.
“We’ve seen strong activity from Sydney and Canberra buyers looking to relocate and we’ve seen prices hold.”
The recent price downturn that gripped most of the east coast appears to have eased in recent months and Mr Ryan noted that more affluent parts of these regional markets were setting their own pace.
“Prices in all of these regions seem to be holding up very well,” he said.
“It shows that the top end of the market continues to kind of set its own trajectory.”
Before the start of the pandemic, in 2019, Toowoomba didn’t record a single sale above $2m. Fast forward four years, and five transactions were recorded with an average price of $9.567m – which Mr Ryan said was likely exaggerated due to one large sale.
Local agent Wade Lockrey, an agent at Ray White Toowoomba, said interest from the Sunshine Coast was still high.
“Through the boom (interest) was extraordinary and now it is still strong,” Mr Lockrey said.
He is marketing a Middle Ridge property overlooking the greenery of Table Top Mountain, Stringybark Mountain and the Brisbane Valley.
With a price guide around the early $2m mark, the modern entertainer is expected to appeal to young retirees or an older family, due to its split living.
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