Regional NSW Property Price Growth Hits 29.1% Per Year

1/12/2021

Investors of property in regional NSW will be pleased with the data presented in the latest CoreLogic November Home Value Index. The report, released on December 1, highlights the continued strength of property in the regions both from a capital growth and rental yield perspective - and indicates that Regional NSW specifically has outperformed many other areas of Australia.

Changes in National House Values

According to the CoreLogic November Index:

As of November 2021, national house values have increased 22.2% over the past 12 months
This growth equates to adding approximately $126,700 to the median value of an Australian home

However there is a slowdown in the pace of growth, which CoreLogic's Research Director Tim Lawless says is for a number of reasons:

“Virtually every factor that has driven housing values higher has lost some potency over recent months. Fixed mortgage rates are rising, higher listings are taking some urgency away from buyers, affordability has become a more substantial barrier to entry and credit is less available.”

Changes in Regional NSW House Values

From a regional perspective, capital growth results were even stronger than in the major cities:

Regional NSW dwelling values have increased 2.4% in the past month
Regional NSW values increased 29.1% in the past year
Given that the median value of a house in regional NSW is now $695,251, approximately $156,714 has been added to the median value of a regional NSW home in the past 12 months
This level of capital growth is significantly above all capital cities, including Sydney (25.8% annual growth), Brisbane (25.1% annual growth) and Melbourne (16.3% growth)
Indeed, across all capital cities and regional areas nationwide, only regional Tasmania had a greater level of annual capital growth in property prices than regional NSW (29.8% vs 29.1%)

Change in dwelling values regional nsw November 2021 - carnelian property management

Source: CoreLogic November 2021 Home Value Index

The report cites that "demand for housing across regional markets, especially those within commuting distance of the major cities, is continuing to benefit from the rise in popularity of remote working arrangements, along with renewed demand for coastal and lifestyle properties, and in many cases, more affordable housing options".

Impacts of House Price Growth on Rental Yields

As house prices grow, rental yields have reduced as a result of house prices rising faster than rents.

Even still, rental yield in Regional NSW in November was 3.7%, outperforming Sydney (2.4%) and Melbourne (2.7%).