Latest movements in the market seem to show a stronger demand for housing as supply remains limited, with conditions in regional areas receiving increased attention from potential homebuyers.
According to CoreLogic’s latest report, there were signs of market improvement in the past few weeks:
- Capital city clearance rates have held above decade average for six of the past eight weeks.
- Vendor discounting improved, from a trough of 4.4% in December 2022 to 4.2% in March 2023.
- Home values are starting to trend higher, with the daily home value index lifting 0.9% since early March.
- The uplift in dwelling values has flowed through to around 35% of suburbs analysed in the March quarter.
Among the 25 best-performing suburbs in the first quarter of 2023, 20 are in regional Australia.
25 best-performing suburbs in March 2023 |
||
|
Suburb |
3-month change (%) |
Median value ($) |
|
Robe, Regional SA |
8.3 |
569,501 |
|
Dinner Plain, Regional Vic |
8.0 |
1.05m |
|
Trangie, Regional NSW |
7.4 |
228,371 |
|
Werris Creek, Regional NSW |
7.1 |
275,274 |
|
Kalbarri, Regional WA |
6.9 |
327,906 |
|
East Killara, Sydney |
6.8 |
3.48m |
|
Cervantes, Regional WA |
6.6 |
414,101 |
|
Port Douglas, Regional Queensland |
6.6 |
496,823 |
|
Middle Cove, Sydney |
6.4 |
3.35m |
|
Warrawee, Sydney |
6.4 |
2.44m |
|
South Turramurra, Sydney |
6.2 |
2.31m |
|
Riverglades, Regional SA |
6.1 |
449,129 |
|
Gordon, Sydney |
6.0 |
1.49m |
|
Streaky Bay, Regional SA |
5.7 |
367,573 |
|
Armstrong Beach, Regional Qld |
5.7 |
419,357 |
|
Normanville, Regional SA |
5.6 |
593,213 |
|
Maffra, Regional Vic |
5.5 |
385,880 |
|
Tailem Bend, Regional SA |
5.5 |
267,744 |
|
Kurrimine Beach, Regional Qld |
5.4 |
366,327 |
|
Tathra, Regional NSW |
5.4 |
752,245 |
|
Hay Point, Regional Qld |
5.4 |
443,262 |
|
Waroona, Regional WA |
5.4 |
363,177 |
|
Blackwater, Regional Qld |
5.4 |
184,326 |
|
Euroa, Regional Vic |
5.3 |
480,172 |
|
Sunset Beach, Regional WA |
5.3 |
412,858 |
CoreLogic head of research Eliza Owen said the performance of regional shown remarkable performance over the period.
“It has been common for regional Australia to dominate growth charts through the pandemic period, but as the cycle has matured, it seems to be more rural regional markets with particularly low price points that have seen the strongest rates of growth,” she said.
Among regional areas, South Australia, Northern Territory, and Western Australia showed the highest share of suburbs with rising values over the March quarter at more than 70%.
Across capital cities, Perth achieved the highest proportion of suburbs with rising value at 57.3%. Following behind is Sydney with 43.9%.
Ms Owen said while a relatively high volume of suburbs is experiencing growth in Perth and Sydney, the growth dynamics in their respective markets are different.
“If Sydney is leading capital cities out of a downswing, Perth has yet to go through one. Perth dwelling values have held reasonably steady since rates started to rise, tracking just -0.4% below a recent high in July last year,” she said.
“Home values across Perth are highly affordable due to subdued capital growth performance in the longer term and have likely not been as impacted by recent rate rises as a result. If anything, it has been more affordable suburbs that led growth across Perth in the March quarter.”
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Photo by WilshireImages on Canva.
