While some of Australia’s regional markets managed to record exceptional growth last year, others failed to hit the mark.
“Over 2012 we saw a large variance in the growth of houses and units. As an example, in the Pilbara region in Western Australia, there was a 20.6 per cent increase in values and in the Murray Lands region in South Australia, values dropped by 9.6 per cent,” RP Data’s research analyst Cameron Kusher said.
Of the 51 regional markets analysed by RP Data for home value growth, 40 of these recorded an increase in values over the year, with the remaining 11 regions seeing values fall.
Mr Kusher said the markets to record the largest increases in values are those linked to the mining and resources sector or agricultural areas.
Simultaneously, the regions to record the largest value falls are those linked to the tourism sector, with many of them in coastal areas.
The regional housing market results confirmed that similar to the performance of the combined dwellings, 41 regions have recorded growth in house values with the remaining 10 seeing values fall over the year.
On the other hand, the unit market has far fewer regions (due to the much lower prevalence of units outside capital cities), just 15 major regional areas nationally.
Of these regional markets, value changes over the year have varied from a fall of 4.4 per cent in the far north region of Queensland to a 13.4 per cent increase in south west Western Australia.
Only six of the 15 markets recorded value growth throughout 2012.
“The majority of regional markets have recorded value growth over the year; however, it is clear that the detached housing market has typically been stronger than the unit market,” Mr Kusher said.