Coronavirus Spurs The Trend Of Buyers Looking To Move To Regional Australia

The Corona Virus has spurred a long-standing trend of people looking to move out of expensive, overpopulated areas to a more affordable lifestyle in Australia’s regional cities and towns.

The trend towards Australia’s regional areas is certainly not a new one, with recent numbers published by CoreLogic showing consistently higher growth in the regions over the past five years compared to that of the capital cities. In the past year alone combined values across regional markets have increased 4.8%, compared with just 3.7% across the capital cities (source Corelogic). 

Buyers have overwhelmingly been attracted to the regions because of affordability (statistics suggest this is the biggest driving factor source). However, according to Terry Ryder from Hotspotting, another prominent factor driving this trend is local and federal government investment in things like health facilities, retail, schools, public transport and other public services. The stimulus through infrastructure has been a key driver of employment in these areas, aiding confidence and long-term economic stability.  

Hotspotting Top 10 places for an affordable lifestyle

Rank

City

State

1

Bendigo

Vic

2

Sunshine Coast

Qld

3

Mornington Peninsula

Vic

4

Central Coast

NSW

5

Orange

NSW

6

Rockingham

WA

7

Launceston

Tas

8

Hunter Valley

NSW

9

Albury/Wodonga

NSW/Vic

10

Latrobe Valley

Vic

^Source: Hotspotting

 

Buyer confidence in the regions this year has also been buoyed by the fact that a majority of regional areas did not see the strict restrictions and closures seen in the cities. 

Ryder notes this sentiment is backed by vacancy rate data, which have remained low during the pandemic in regional areas. According to Ryder, vacancy rates tend to be a strong indicator of expected price trajectory. Low vacancy rates often reflect the direction of the market, indicating strong demand and potential for continued growth. 

In 2020, the Coronavirus has changed the working landscape. Many businesses have been forced to adopt a more flexible approach to work, allowing more employees to work from home, now and likely well into the future. Without the constraints of having to commute into the workplace every day, it makes more sense than ever for those looking for more affordable housing and a better lifestyle to make the move.

Looking to join the exodus to the regions?

Not all regional areas are created equal. There are a number of things buyers should be looking out for to ensure a solid long term investment.

  • Don’t just look at the price point.
  • Consider whether there is a good level of existing infrastructure.
  • Examine current and future plans for infrastructure and Government spending in the area and how this might spur future growth.
  • Does the area have a strong local economy and more importantly is it a diverse economy and not solely reliant on one industry?
  • Is there a stable population and good expected growth to drive demand?
  • Do your own due diligence. Research the type of block you want to buy and its proximity to current and future amenities like shops and transport. 
  • Consider the floorplan of the property you want to buy. All of these factors affect the ‘livability’ of an area and property. 
  • If building, what type of block are you buying? Look at zoning, elevation and soil. Different types of blocks may be more expensive to build on. 
  • When choosing a floor plan, ensure it includes dedicated space for a workstation or study if you plan on working from home as a regular occurrence.

Looking to make a tree or sea change to a more affordable lifestyle in the regions? Have an obligation-free chat with one of our friendly, knowledgeable property experts about your requirements today.


Call us on 1300 123 463 or contact us online.

Published on 17th of November 2020 by Michelle Leftwich
Michelle Leftwich
Michelle Leftwich

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