Bowen Basin property ranks as mainland's top 2018 price growth performer: CoreLogic

Bowen Basin property ranks as mainland's top 2018 price growth performer: CoreLogic
Bowen Basin property ranks as mainland's top 2018 price growth performer: CoreLogic

EXPERT OBSERVER

CoreLogic recently undertook analysis of the largest gains and biggest falls in dwelling values across 50 areas of Australia over the 12 months to November 2018.

The CoreLogic Home Value Index gathers results across the SA3 geographic level regions (Note: SA3s have populations of 30,000 to 130,000), and looks at those regions to see which achieve the largest value gains and the largest falls over the year.

The Top 50 regions for value growth over the past year was dominated by Victorian and Tasmanian regions, indicating a strong slant towards regional areas rather than capital cities.

This reflects the fact that as value growth conditions weakened nationally, the slowdown has been much more rapid across the capital city markets.

Tasmania’s South East region recorded the strongest value growth over the past year with dwelling values increasing by 16.3%.

Over the 12 months to November 2018, only 15 regions nationally have recorded double-digit value growth and 10 of the 15 were in Tasmania.

Victoria had three of the 15 and New South Wales and Queensland had one each.

Bowen Basin property ranks as mainland's top 2018 price growth performer: CoreLogic                                                                                                                   Bowen Basin property ranks as mainland's top 2018 price growth performer: CoreLogic

Over the 12 months to November 2018, 23 SA3 regions nationally recorded double-digit value falls, 15 of which were in NSW.

More regions have recorded double-digit falls than those that have recorded double-digit value increases this year.

Over the past 12 months, 55.7% of all SA3 regions nationally recorded value declines.

By way of value declines, over the past year, New South Wales had the lions share with 28 individual regions within the top 50 located in NSW.

Regions of Victoria, Queensland, Western Australia and Northern Territory also appear on the list.

The Outback-South region of Queensland recorded the largest decline in values at - 15.6%; the only region where values have fell by more than 15% over the past year.

Geographically large, the Outback-South region includes the major towns of: Longreach, Charleville and Cunnamulla.

The outlook for the housing market is for further weaknesses.

Although the sharp falls of this year (especially in Sydney) are unlikely to continue at their pace over the next year, it would not be a surprise to see that in 12 months’ time additional SA3 regions across the nation have recorded annual value falls.

More affordable regional housing markets with healthy or improving economic and demographic conditions are expected to hold up better in terms of growth than the more expensive and weaker capital city housing markets.

CAMERON KUSHER is a property research analyst for CoreLogic.

Cameron Kusher

Cameron Kusher

Cameron Kusher is senior research analyst at CoreLogic RP Data.

Tags: 
Dwelling Values Corelogic

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