Regional NSW and Queensland can expect to see house prices grow in the next 12 months.Domain expects regional NSW and Queensland could reach record median house prices.Regional house prices are expected to hit record highs in all but one pocket of the country in the next year thanks to resilient regional economies, a new forecast predicts.
Regional Queensland was tipped to increase by 2 per cent to 4 per cent growth to reach a median of $536,000 to $546,000. Meanwhile, regional NSW would hold steady at a median of $735,000 with the potential of rising to $757,000 after 3 per cent of growth. Both regional areas would hit record price highs if the forecast rises come to pass, but only at the upper end of the prediction for NSW.
“Governments are definitely focused on supply, and supply takes time to come to market. The undersupply and the need for housing is still placing pressure on prices and pushing them up.”KPMG urban economist Terry Rawnsley said the modest growth expected in regional NSW and Queensland was likely due to popular regional towns approaching an affordability ceiling.
“There has been quite a big wage growth when compared to the capital cities,” she said. “Places like Newcastle, Tamworth, Mackay, the Whitsundays, on average, their wage growth is 6 per cent to 7 per cent which is much higher than the national average. Powell said Victoria’s ongoing loss of residents to other states had caused its regional areas to fall behind its peers.