Real estate agents are encouraging investors to broaden their horizons beyond the big cities, after regional areas surge through the housing market this month. Housing prices are decreasing in Melbourne and Sydney, with just a handful of suburbs between the cities showing significant economic growth. Perth, Adelaide and Canberra have emerged recently, and with the price of houses spiking in these areas. 126 suburbs between the three cities have shown sustainable growth in the housing market, while only 17 suburbs between Melbourne and Sydney have shown evidence of growth.
More rural towns like Kempsey, Broken Hill, and Inverell have grown massively in the last few months, according to real estate expert and Hotspotting manager Terry Ryder. Ryder believes regional Australian towns have only just begun to make their mark on the Australian housing market.
“The regional areas which are within commutable distance from Melbourne and Sydney are starting to rise, but they’ve also got strong local economies themselves, their populations are growing, jobs are being created and money is being spent on infrastructure,” Ryder told news.com.au. “These tend to be the common denominators of the areas that are rising.”
The growth in the rural Australian market can be attributed to homebuyers’ exhaustion with the larger cities and their ever-increasing house prices.
“Regional yields are much better than the cities, so there’s good prospect for growth. The buying price is a lot better, so we call it a win-win for buyers,” Ryder said.
Despite these updates, housing prices are not expected to drop further, so prospective homebuyers shouldn’t empty out their coin purses just yet.
“They are only falling in certain parts of Sydney and Melbourne,” Ryder claimed. “Many of the strongest markets now are regional areas — particularly in Victoria and NSW.”
On the other end of the spectrum, a list of the most dangerous suburbs to live in has also been released. Queensland is in the lead with 26 scary suburbs making the list. NSW is a close second with 17 dangerous suburbs out of the 66 on the list.
These are just a few changes in Australia’s incredibly erratic housing market, but changes that should definitely be noted for first-time homeowners and those looking to buy a house.