It doesn’t seem so long ago that regional property markets were booming with flyaway prices. However, we need to put this boom into context. Many of the supercharged regional areas were the ones most in demand in 2019: Noosa and much of the Sunshine Coast, Byron Bay, the Southern Highlands, the Gold Coast while 2020 saw Foster Tuncurry and many of the NSW coastal towns hit their highs.
Now as I assess the overall NSW market, I’m seeing something a bit different.
Premium regional areas have experienced a drop in home values while in the lesser-known regions like Gloucester, home prices have held up reasonably well.
According to The Property Tribune: ‘The Regional Movers Index’s March 2023 Quarter Report has found that the major cities are experiencing unprecedented levels of migration between major cities and regional areas.’ (The Regional Movers Index is a partnership between the Commonwealth Bank and the Regional Australia Institute.)
That bodes well if you’re considering selling in the Gloucester region, whether you’re downsizing from a home in town or you’re on acreage and want a different lifestyle.
There’s a demand for quality work opportunities and our town provides growth; we need teachers, doctors, tourism operators and more. All these new workers need somewhere to live.
CoreLogic states that housing values across Australia declined -5.3& over the past 12 months. However, most of these losses have been in capital cities. The South Australian regional market gained 8.7%.
Tree Change opportunities
While median growth in the Gloucester region has dipped slightly, rents are on an upward trajectory.
As John McGrath of McGrath Real Estate noted in a recent article: ‘Price growth is currently strongest in rural treechange areas across regional Australian markets.’
He noted also that, traditionally, buyers moving from capital cities sought beach areas for the beachside lifestyle. Buyers in those regions might also have assumed better capital growth.
As capital city homeowners or renters moved to beachside regions for an improved lifestyle and cheaper housing, prices went skywards.
It was time for areas like Gloucester to shine. As buyers were pushed from the beach, they started looking at the value in regional towns. In our case, we have outstanding natural beauty, camping spots and walking trails, wineries and so much more. Best of all, in tree-change towns, new residents have the added value of a town and region that isn’t seasonal with thousands of tourists flocking to the region in summer, with autumn and winter leaving the town desolate.
Tree-change regions also offer a more purposeful lifestyle, with many incomers choosing acreage with options for horses, fruit trees, vegetables or cattle as they enter the next phase of their lives. Rural areas have seen the strongest price growth in 2023, especially in NSW.
From CoreLogic we learn that home values in regional areas were about 30% higher than they were at the beginning of 2020. In the Gloucester region, some properties had increased over 40% over the prior 10 years. That increase settled down in late 2022 and the market generally in the Gloucester region plateaued. The 5% capital growth predicted into early 2024, is starting to show in property prices locally, but there’s a caveat, it’s only holding for quality properties. Buyers are savvy, and expect alot for their dollar spent. They are not being lured into inflated prices for properties that don’t offer quality or meet their needs.
If you’re thinking about downsizing or changing your lifestyle, now is the time to start preparing your home for sale.
Need advice on selling your Gloucester region property?
As a proud local, I’m here to guide you through the process of selling your home. I specialise in lifestyle, rural and residential properties. I’ve done it myself and helped many families over my career. So give me a call; I’m here to help.