CoreLogic update: Regional markets continue to perform
Latest CoreLogic report shows buyers are continuing to move further out of city centres
Australia’s housing market continues to show resilience, with the latest CoreLogic report revealing encouraging signs across values, listings, and buyer activity.
Here are the key takeaways shaping the current property landscape:
Annual home value growth hits 3.2 percent
National home values have risen by 3.2 percent over the past 12 months, a steady performance that reflects improving market confidence and ongoing buyer demand. As of early May, 32,321 new property listings were recorded across the country, contributing to healthy transaction volumes.
The total value of Australia’s residential real estate has now reached a staggering $11.3 trillion, eclipsing the combined value of the national superannuation, stock market, and commercial real estate sectors.
Regional Australia leads the way
Regional housing markets continue to outperform, with regional WA (+13.2 percent), SA (+12.9 percent), and QLD (+8.7 percent) recording the strongest annual growth. Across all regional areas, housing values are up 5.3 percent in the past year, reinforcing the long-term shift in buyer preferences toward lifestyle and affordability outside capital cities.
Strong gains in outer suburbs
The most robust housing conditions over the past 12 months have been observed in the outer rings of Perth, Adelaide, and Brisbane. These suburbs, located 10 to 30 km from their respective CBDs, have experienced property value increases exceeding 10 per cent, driven by a mix of affordability, lifestyle appeal, and improved infrastructure.
First home buyers are maintaining a strong presence, with the value of finance commitments rising 1.5 per cent over the final quarter of 2024 to reach $16 billion. They now account for 29.2 percent of all owner-occupied lending—significantly above the decade average of 26.8 percent. This indicates growing confidence and accessibility for new entrants into the market.
Cash rate expected to ease
There is strong market consensus that the Reserve Bank of Australia will cut the cash rate by 25 basis points on May 20, bringing it down to 3.85 per cent. Anticipating this move, major banks including CBA, ANZ, and Westpac have already lowered their variable rate home loans.
This could provide welcome relief to borrowers and may stimulate further activity in both the owner-occupier and investor segments.
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