CoreLogic's head of research, Eliza Owen, has published a new report looking at Australia's regional property markets, which are currently experiencing booming conditions. The report shows that the Illawarra is out-performing capital cities and other regional area's on a 10 year annualised growth rate in NSW.
There has been no shortage of reporting about the relatively strong performance of regional Australian dwelling markets over 2020. December home value data showed the combined regional dwelling market increased 6.9% in value over the year; a growth rate more than three times the rate of the combined capital cities.
But even more impressive than value changes in 2020, is the return that some areas have shown in the longer term.
This can be seen when looking at 10 year annualised growth rates, which is what growth in an asset value would be if it had the same growth rate every year for 10 years. By this metric, some 'secondary cities' have performed just as well as, if not better than, their capital city counterparts. This is a particularly prominent trend across the eastern seaboard.
This report details a set of charts which shows that 10 year annualised growth rates in large, coastal dwelling markets are closer to the performance of capital city sub markets than the rest of regional Australia.
The Illawarra was reported to have a 5% annualised growth rate over the past 10 years, the best rate in NSW.Read the full article here. https://www.corelogic.com.au/news/four-charts-show-regional-returns-league-their-own