Regional prices strengthen
AS OWNING a home in Sydney becomes more and more out of reach, there’s evidence city buyers are looking further afield to get into the property market. Property statistics reveal Australia’s regional areas are showing a lift in sales levels and median values.
CoreLogic RPData’s latest breakdown of regional property transactions shows some good results for the Coffs Coast.
The Coffs Harbour local government area has reported excellent growth in median prices across both houses and units. Rental yields are also strong, making investment attractive.
The report shows Coffs Harbour’s median house price grew 6.1% in the 12 months to February, to $446,810.
When looking at the longer term, the report found the median house price for Coffs Harbour had grown 16.4% in the past five years.
The median price of a unit in Coffs Harbour grew 5.5% to $301,347 in the year to February – a 12.7% increase on five years ago.
The local property market recorded the sale of 1252 houses and 531 units during the year to February.
Strong rental returns in the local area are undoubtedly proving a strong attraction for investors. The median weekly rent for a house is $400, which equates to a yield of 5.2%. The median rent for units is $330, which represents a rental yield of 6%.
These are strong results when compared to the average rate of a term deposit across Australian financial institutions, which stands at 3.75%, according to infochoice.com.au.
Elsewhere on the Coffs Coast, property remains strong.
Bellingen median house prices have grown 7% in 12 months to $458,879. The result reflects a median house price rise of 19.7% in five years.
The median house rent in Bellingen is $380 a week, which provides a yield of 4.6% to investors.
Unit prices in Bellingen fell 1.2% in the year to February, but gained 11.6% in the past five years. The median $250 rent for a Bellingen unit has a yield of 4.7%.
In the Nambucca Shire, median house prices sit at $338,844, which represents a 7.6% rise in value in the 12 months to February. The five-year result is a little lacklustre at 7.2%.
The median rent for a house in Nambucca is $350 a week, which equates to a yield of 5.3%.
The median price for units in Nambucca is $258,356, which is a 2.9% rise in 12 months and a 4.7% increase across five years.
Investors can earn a median yield of 5.8% from the median rent of $280 per week.
“With mortgage rates at their lowest levels in 53 years and tipped to drop even further, we’re likely to see housing purchases popular across larger coastal regional markets throughout 2016,” CoreLogic research analyst Cameron Kusher said.