Regional home values stay strong as capital cities slip
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Photo by Thanh Luu
Regional house prices have risen one percent in the three months to January 2025 across three-quarters of regional suburbs while capital city values declined.
Almost half of capital city suburbs recorded a 0.7 percent fall, with Sydney and Melbourne hit hardest.
Three in four Sydney suburbs and 90 percent of Melbourne suburbs experienced price drops.
CoreLogic economist Kaytlin Ezzy said hybrid working arrangements continued to influence buying patterns.
“With more people able to prioritise lifestyle over job location, the flow of internal migrants to regional markets has settled higher than the levels seen pre-COVID, helping to support housing demand,” she said.
More affordable regional housing options and increased capital city supply have contributed to the trend.
Price declines are now spreading to Brisbane, Adelaide and Perth as their growth momentum slows.
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National home values fell 0.3 percent over the quarter, with Australia’s residential real estate market valued at $11.1 trillion in January.
The shift in selling conditions now favors capital city buyers due to worsening affordability, growing property listings and easing overseas migration.