09 Feb 2018

Moving to the country the answer to housing affordability for some, but prices are rising…

Real estate agents are reporting strong interest in regional property sales as first home buyers and retiring baby boomers realise the savings that can be made by a move to the country.

Deputy Prime Minister Barnaby Joyce's advice to aspiring city homeowners a year ago was blunt.

He told would-be buyers if they could not afford Melbourne or Sydney prices, they should stop complaining and 'go out west' to rural and regional Australia.

And while his comments came in for a fair deal of criticism, Real Estate Institute of Australia president Malcolm Gunning believes the message resonated with many Australians.

"The combined regional average [house price] in Australia is $355,000, compared to the capital cities [average] of $656,000, which is a $300,000 difference," Mr Gunning said.

"Your average price in Sydney is just on $900,000, $895,000. Melbourne $720,000.

"It's an absolute no-brainer. It's half [the price in regional areas]."

Mr Gunning said while the market in regional Western Australia was down in 2017 and regional South Australia remained flat, agents in other areas reported strong interest, with high prices in Sydney and Melbourne spurring would-be buyers to look further afield.

Figures compiled by CoreLogic for the 12 months to December 2017 showed strong price growth in regional New South Wales, up more than 7 per cent, while regional Tasmania was up 5.5 per cent, regional Victoria increased 4 per cent, and regional Queensland 1.3 per cent.

Share Socially