Canberra’s surrounding NSW regions outpace ACT house price growth: Domain House Price Report

A competitive marketplace driven by low interest rates, a shortage of stock and interstate buyers have spurred property prices in the ACT’s surrounding NSW regions with houses in Shoalhaven, Yass Valley and Eurobodalla outpacing the capital for property price growth. 

According to the latest Domain House Price Report for the December quarter 2020, median house prices in the Shoalhaven region increased by 19.4 per cent over the year to $645,000; followed by Yass Valley, up 11.2 per cent to $665,000; and Eurobodalla, up 9.5 per cent to $590,000.

Meanwhile, Canberra’s median house price increased by 9.1 per cent over the year to $855,530.

Domain senior research analyst Nicola Powell said the pace of growth had not only led the three regions to outperform the capital but highlighted the strength of the different lifestyles on offer.

“Buyers are really drawn to a change in lifestyle, whether that’s a tree change or sea change and while that was already there before the pandemic, COVID-19 only accelerated it,” Dr Powell said.

“On top of that, I think home owners are utilising low-interest rates to purchase their holiday homes, which has only driven up demand.”

Andrew Todd of Raine & Horne Huskisson, in the Shoalhaven region, said last year was the busiest property market he’s ever seen in the region.

“I’ve been in the real estate industry for more than 15 years, and I have never seen demand as high as this,” Mr Todd said.

“We have buyers of all demographics looking for a variety of houses but there just aren’t many houses on the market.”

Mr Todd recently sold a two-bedroom cottage in the Shoalhaven suburb of Sanctuary Point for $730,000 after receiving multiple offers from two open-for-inspections.

The residence at 204 Greville Avenue had 25 groups through the first open home and 17 groups through the second, Mr Todd said.

“On average, we would have eight groups through a single open home, so to have 42 in two days is incredible.”

The property occupies 594 square metres of land and was popular for its “quaint location” on Palm Beach’s shoreline. The eventual buyers were a family from Sydney who were looking to relocate.

While city dwellers making the move to regional areas is one reason for the price growth, Mr Todd said residents whose homes were “beyond repair” because of the bushfires of 2019 and 2020 were active house hunters as well.

In the Yass Valley region, George Southwell of Ray White Rural Canberra and Yass has seen an increasing number of buyers from the Southern Highlands.

“We still have a large group of Canberrans relocating to this region, but we’ve seen that decrease in the past few months and those in the Southern Highlands have increased,” Mr Southwell said.

“Yass Valley offers a quieter lifestyle, and we’ve known for a long time that this is a good place to live and work … and now these figures have proven that.”

The region also offers buyers houses at affordable price tags, but Mr Southwell anticipates that to be short-lived.

“Yass Valley is extremely affordable compared to other parts of Australia… but I believe the days of this region being relatively affordable are very limited. We’ll soon see that median house price inch closer to the $900,000 to the $1 million mark one day,” he said.

Dr Powell said should the interest rates remain at its record low of 0.10 per cent, house prices in Canberra’s surrounding NSW regions will continue on its uphill trajectory.

“I think existing home owners will leverage the equity in their homes to purchase an investment property, holiday home or perhaps upsize,” she said.

“And the affordability factor will continue to be a lure for home owners and even first-home buyers looking to make their first purchase.”