Properties And The Regional Boom

Population Shifts

The real estate boom in regional cities, towns and coastal areas can largely be attributed to population growth in these areas. But why are people heading out of the cities?

It’s probably linked to increasing population density as governments try to combat the urban sprawl. This unplanned expansion of cities is a result of suburbanisation and city-fringe settlement fuelled by population growth.

In response, state governments are attempting to contain urban growth by tightening geographical limits, thus increasing urban population density.

Increasing urbanisation is naturally followed by counter-urbanisation. While higher population density in the capital cities pushes up property prices and impacts on residents’ lifestyles, improving infrastructure and changing attitudes toward work make regional cities and towns more attractive places to live.

Better roads and other transport links mean shorter commuting times and with the greater reliance on technology for work and communication it’s now easier for workers to live outside the city.

Government Incentives

In Victoria, the government is campaigning to increase the regional population by 1.25 per cent in 2006, by increasing public awareness of the business and lifestyle opportunities in provincial areas.

Regional Victoria has benefited from the government’s push for regional investment as well as the flow-on effects of the boom period. Median prices in regional centres like Bendigo and Geelong have increased steadily.

Country areas such as the Mt Alexander Shire (home to popular getaway towns of Daylesford, Castlemaine and Maldon) are attracting city refugees seeking a lifestyle change and a sense of community.

Economic Growth

A rolling economy has fuelled migration to Western Australia, with Perth real estate leading the Australian market in 2005. Flow-on growth in regional areas is visible in sales statistics for the June quarter.

Most impressive were annual growth rates for Bunbury (39.8 per cent), Albany (a median price $255,000 and 34 per cent annual growth), Augusta/Margaret River (32 per cent annual growth) and Port Hedland (54 per cent annual growth).

The current boom in the resource sector should continue to fuel WA real estate, especially in regions surrounding mining projects.

Outshining The City

Regional South Australia outshone the Adelaide market in 2005, according to December figures. The median price for country areas rose 5.7 per cent, compared to Adelaide’s 2.2 per cent rise.

According to the Real Estate Institute of South Australia (REISA), towns around the Iron Triangle were the strongest performers with Whyalla achieving a 19.7 per cent increase in its median house price, Port Pirie rising by 36.1 per cent and Port Augusta increasing 26.2 per cent.

However, REISA president Robin Turner predicts that regional SA should begin to stabilise in 2006.

Affordable Sun-Seeking

Seachangers and holiday homemakers have long been driving coastal property in and outside Queensland’s metropolitan markets. Homebuyers and investors are also buying in outlying regions, partly because of their affordability.

A good example is Marian, a small rural town 28 kilometres outside of Mackay. In 2003, eight properties were sold at an average price under $30,000. By 2005, the sales volume had boomed to over 100 properties and the average sale price had tripled.

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