Coastal communities post impressive capital gains

House prices in key regional centres are growing at rates that would make some capital cities envious.

Median house prices in the Illawarra region of NSW jumped 9.3 per cent during the year to March, with vendor discounting at 3.6 per cent, according to CoreLogic RP Data.

House prices in the Newcastle & Lake Macquarie region increased 7.4 per cent, with vendor discounting running at 5.1 per cent.

Sunshine Coast house prices rose 6.3 per cent, while discounting was at 5.9 per cent.

Cairns reported median house price growth of 5.1 per cent and a discounting rate of 7.0 per cent.

Gold Coast reported house price growth of 4.8 per cent and a discounting rate of 6.1 per cent.

In the Richmond-Tweed region in northern NSW, house prices climbed 3.6 per cent, while discounting ran at 6.4 per cent.

Geelong house prices rose 3.5 per cent, while discounting was at 5.6 per cent.

La Trobe-Gippsland in Victoria reported house price growth of 2.3 per cent and a vendor discounting rate of 7.2 per cent.

Bunbury in Western Australia experienced house price growth of 1.2 per cent and a discounting rate of 6.1 per cent.

The coastal Queensland region of Wide Bay experienced house price growth of 0.2 per cent, while discounting reached 8.4 per cent.

Further north, in Townsville, house prices fell 2.4 per cent, while discounting ran at 8.4 per cent.

CoreLogic RP Data senior researcher Cameron Kusher said that while low interest rates have made consumers more confident, not all regional centres are enjoying the benefits.

Areas closely linked to the resources sector are still experiencing deteriorating property conditions, according to Mr Kusher.

“We’re starting to see greater home value growth across many coastal lifestyle markets,” he said.

“With mortgage rates tipped to remain low, the attractiveness of housing, particularly in some of the larger coastal regional markets, is likely to continue to show further growth over 2015.”

[Related: Metro prices growing twice as fast as regional values]

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