Despite Covid-19 negatively impacting property prices across most of the country, industry data shows that Regional NSW has been one of the strongest-performing areas of the housing market in these turbulent times.
With the media tending to focus on the problems in the big cities, it's important for property investors in Newcastle and the rest of Regional NSW to understand that local markets are performing comparatively strong.
CoreLogic data from the end of June shows that, although property values have dropped across much of the country, Regional NSW is one of the few spots to have experienced growth in three timeframes: over the past month, the past three months and the past 12 months.
The bottom line of the report is that over the past year, property values have grown across Australia, even with the recent blip in some areas.
In numbers, Australian property values are7.8% higher on average than they were at this time in 2019. That breaks down to an 8.9% increase in the capital cities and a 3.7% increase in regional areas.
That means most property owners are now sitting on more valuable assets, allaying many fears that Covid may bring about a housing collapse.
The report tracked property values in 15 key areas of Australia – the eight state and territory capitals and the seven regional areas surrounding them (Regional ACT being the obvious exception).
Although almost all regions have seen house values rise over the last year (the only exceptions being Darwin, Perth and Regional WA), that hasn't been the case since Covid-19 was detected in Australia.
In fact, only four of the 15 areas have seen growth in the three timeframes measured. Regional Tasmania has had the best results, while Canberra, Hobart and Regional NSW have also seen positive movement.
Regional NSW – which covers the entire state outside Sydney – has seen consistent growth in house prices in recent times.
Property in Newcastle, The Hunter and further afield have had a combined growth of 3.9% in the last 12 months, with slight gains over the past month and the last quarter.
Part of this growth is attributed to caution on the part of vendors, so a lack of supply has stopped prices dropping. With more confidence returning to the sector, more properties entering the market will meet the rising demand of buyers looking to move in somewhere new.
In Newcastle itself, data from RealEstate.com.au shows that the median price of a unit sold has risen almost 5% in the past 12 months, or around 2% in the last three months.
If the area's positive response to Covid-19 continues, and we avoid a second wave in Regional NSW, this strong performance should give local property investors hope for future prosperity.
As well as increased movement and fewer restrictions being rolled out, local and state governments are planning to help the property markets. There is discussion about removing stamp duty and insurance duty, and NSW may follow in the footsteps of WA where first-time home buyers have been offered larger grants.
If you're thinking about buying a home or investing in property and you want a little help, call the East Coast Conveyancing office on 1300 327 826 or download our free ebook below.