There is a substantial regional migration under way within Australia, most notably to New South Wales’ Central Coast and Northern Rivers regions, and the south-east coast of Queensland.
Recent figures from the Australian Bureau of Statistics show that capital cities across the country experienced the highest quarterly net loss on record, to the tune of 11,800 people.
Managing director from Foxwood Property Clint Willoughby said this had “been propelled by the onset of remote working as the new normal, as well as a shift in buyer psychology as they exchange urban density, and commute convenience, for the space and value that a more regional setting provides.”
Willoughby said that there is surely also correlation with what is being calling “the Great Resignation”, as workers explore different work-life balance and job opportunities.
For developers, this regional shift can present opportunity and challenge in equal measure. For some, a widening of purchasing scope may be necessary in order to capitalise on the regional lifestyle investor boom.
Staying ahead of this outflow of people means having a critical eye for timing, so as to adhere to the classic ‘buy low, sell high’ mantra.
Willoughby said that “bridesmaid suburbs” have transitioned to “bridesmaid towns”, as astute land buyers note that the tremendous price increases in a major regional centre, such as Byron Bay, have gradually seeped outwards throughout the surrounding towns, with a lag of approximately two to four years.
He said that a key driver when locating sites for clients has been to “identify those areas that have similar key features that these outbound investors and owners seek, such as proximity to urban centres, access to public services, and coastal lifestyle, that are yet to experience the same growth surge”.
The Central Coast represented an area potentially during this transition. While the towns closest to Sydney, such as Umina Beach, have already seen prices surge, the region to the north surrounding Gosford has yet to fully realise this projected appreciation in housing and unit prices.
Contained to the south of Newcastle, it remains conveniently commutable to Sydney, while offering a median price that still hovers below $1 million.
Developers in Sydney, especially with projects approved and under construction, need not immediately panic though, according to Willoughby, as this outflow of residents seems to have done little to dampen the post-pandemic surge in pricing throughout the city over the past year.
NAB recently reported an astonishing 22 per cent increase in prices in Sydney during the past 12 months, despite a net loss of residents, and while this reflects the housing market, the widening gap to apartments should see demand and price increase for units.
South-east Queensland is the anomaly, reporting both a net increase of incoming residents to Brisbane, and simultaneously enjoying a regional price boom.
During the past six years, Burleigh Heads and Gold Coast owners have seen their properties nearly double in value, however this sustained population growth sees many developers eyeing continuing value and growth potential in this region.
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