More Canberrans and Sydneysiders look towards regional housing amid COVID-19 crisis

Living near Australia’s capital cities may soon become a thing of the past as more property buyers look towards regional houses for a change in lifestyle, now that the pandemic has shifted the way people work, data suggests.

According to the latest Domain House Price Report, regional NSW dwellings are outperforming Sydney and are on par with Canberra.

The data showed that in the three months to June 2020, the median dwelling price – for both houses and units – in regional NSW was up 1 per cent over quarter to $503,972. This was a 6.2 per cent increase year-on-year.

Meanwhile, Sydney was down 2 per cent over the quarter to $974,853. This was a 9.4 per cent increase year-on-year. In Canberra, the median dwelling increased slightly by 2.8 per cent to $688,028, a 6.4 per cent increase from the year prior.

Domain senior research analyst Dr Nicola Powell said there had been an emerging pattern of regional cities bucking the downward trend seen in other capital cities such as Sydney, in particular.

“What the pandemic has done is shift people’s attitudes towards where they can live,” Dr Powell said.

“We’ve traditionally seen that the location of our work has dictated the vicinity in which we want to buy. The digital transformation of many businesses has meant that some people will be able to work from home and can split their time between the office and the house.

“For some people, it means they can now move to regional areas because they have the option of working remotely.”

According to the figures, the region of Wingecarribee which includes Bowral, Moss Vale, Mittagong and Bundanoon, increased by 9.7 per cent year-on-year to a median of $820,000.

Gene Fairbanks of Ray White Bowral said a lot of Sydneysiders and Canberrans were looking towards the region more now compared to pre-pandemic days.

“We’re only an hour and a half away from Sydney and two hours from Canberra … it’s a tree change that offers a rural lifestyle and that’s what people are chasing,” Mr Fairbanks said.

“What we saw during COVID-19 restrictions was an increase in inquiries of our listings and a spike in online views and when the restrictions lifted, a lot of that interest rolled over and became inspections and then people started purchasing.”

Mr Fairbanks said a lot of home buyers now had the option of working from home and were looking for houses “with a bit of acreage”.

“Those working remotely don’t want condensed living. They want a veggie patch, an organic lifestyle, more space and peace and quiet,” he said.

Other figures from the dataset showed the region of Goulburn Mulwaree saw an increase of 7.1 per cent year-on-year to a median of $450,000; followed by Eurobodalla, up 6 per cent year-on-year to a median of $530,000.

Kate Quinlivan of Raine & Horne Batemans Bay, in Eurobodalla, said she had sold several properties in recent weeks, as people took advantage of the affordability the region offered, coupled with low interest rates.

“The market has been quite buoyant despite a shortage of supply,” Ms Quinlivan said.

“I think there are many home owners who are reluctant to list their houses but with the strong inquiries we’ve had from buyers, it’s clear the pandemic has not deterred buyer demand.”

But affordability isn’t the only thing going for the region. Parts of these areas offered lower levels of population density which had been a factor for some house hunters, Mr Fairbanks added.

Ms Quinlivan said many Canberrans were looking towards the area, particularly for a cliff-top or waterfront property.

“There’s been a lot more interest and inquiries now than pre-pandemic and I guess that’s driven by a change in the workplace environment,” she said.

Dr Powell said the normalisation of remote working might continue to boost regional migration.

“I think the winners post-pandemic could be our regional areas because it is so much more affordable,” Dr Powell said.

“Quality of life is what some people have in mind … which can be found in areas near big cities such as Sydney or Canberra.”

Dr Powell added while it was still too early to track how well the NSW government’s decision to axe stamp duty for new properties worth up to $800,000 was going, she noted the threshold as it originally stood was already suitable for regional areas.

“I think the increase would be helpful for those purchasing in Sydney. I don’t think it’ll have a material difference to house prices in regional areas,” she said.