NSW sea-change towns enjoy a vibrant community,
A number of regional towns in NSW have seen house price increases of up to 25 percent in the past year.
These towns offer more affordability and a better lifestyle compared to Sydney, attracting many potential buyers.
The council areas of Lismore and Richmond Valley led the increase, rising by 25.1 percent and 19.7 percent, respectively.
Experts attribute this growth to the ripple effect from the Lismore flood zone buyback scheme implemented recently.
Following them, the Murray River region saw a 16.1 percent increase, while Yass Valley rose by 15.8 percent.
Muswellbrook experienced a notable increase as well, with house prices climbing by 14.7 percent in the same timeframe.
Although the median house price across regional NSW was 2.7 percent higher in the September quarter than a year ago,
it experienced a slight decline of 0.7 percent over the last three months.
This information comes from the latest Domain House Price Report, released on Tuesday.
Dr. Nicola Powell, Domain’s chief of research and economics, noted that buyers are attracted to regional NSW for its affordability.
She mentioned that the appeal lies in the lifestyle balance, despite the extreme tree- and sea-change movement ending in 2020 and 2021.
However, buyers still face cost-of-living pressures due to high prices and rising mortgage rates.
Powell emphasized that this report indicates the first quarterly decline in house prices in two years.
Moreover, demand continues to be stronger in relatively affordable areas compared to others.
Regional NSW towns with the highest house price increases over the past year
| LGA Name | Sep-24 | Sep-23 | Annual change |
|---|---|---|---|
| Lismore | $585,000 | $467,500 | 25.1% |
| Richmond Valley | $525,000 | $438,750 | 19.7% |
| Murray River | $650,000 | $560,000 | 16.1% |
| Yass Valley | $867,500 | $749,000 | 15.8% |
| Muswellbrook | $537,000 | $468,000 | 14.7% |
| Tweed | $1,067,300 | $947,003 | 12.7% |
| Kiama | $1,475,000 | $1,311,250 | 12.5% |
| Narrabri | $400,000 | $360,000 | 11.1% |
| Wollongong | $1,022,500 | $925,500 | 10.5% |
| Wagga Wagga | $606,000 | $550,000 | 10.2% |
Powell noted that only two of the top ten local government areas experienced the highest price growth in NSW.
These premium areas are Tweed and Kiama, which have shown significant increases in property values.
“Many of these regional local government areas showing strong growth rates are more affordable locations,” Powell explained.
“This indicates that different dynamics are unfolding in regional NSW,” she added.
In the meantime, buyers have more options in regional areas this spring compared to previous years, according to her.
“This 8.5 percent increase in listings represents a substantial reversal. Previously, overall listings were 20 to 30 percent lower than the five-year average.”
Elly Bird, the executive director of the support group Resilient Lismore, shared insights about post-flood property sales.
She mentioned that homes sold for lower prices immediately after the floods occurred, impacting the local market significantly.
However, those who waited for the government buyback scheme found opportunities to reinvest nearby after the disaster.
“Properties that were valued at $500,000 to $600,000 before the disaster were selling for just $200,000,” she revealed.
Bird emphasized that it is now much rarer to find those inexpensive flood-damaged houses on the market.
While not every property was eligible, she noted that over 800 affected properties received approval for the government buyback scheme.
More than 600 of those approved properties were located in Lismore, demonstrating significant local impact.
“Most individuals who endured that disaster, especially those who needed rescue, sought a lifeline,” she stated.
“They wanted a way to escape the flood zone and find safe living conditions,” she concluded.
“We need to remember that the Lismore LGA is much larger than just the flood zone,” said Bird.
He noted that the CBD is as vibrant as any other regional center.
“You could easily overlook the fact that something significant occurred here,” he continued.
However, once you venture into the residential areas, a different perspective emerges.
The damage evident in the residential stock is quite clear, highlighting ongoing challenges.
George & Fuhrmann Casino’s Jenny Pedrini remarked on a remarkable increase in sales in Casino.
This suburb, located within the Richmond Valley region, is under the $600,000 price range.
“We observed a significant influx of buyers from the flood-affected Lismore area,” she explained.
The increase in sales stemmed from residents approved for the buyback scheme, she noted.
Furthermore, the region’s affordability attracts first home buyers and investors alike.
This demand is largely driven by the rental market’s current conditions.
“Stock levels are low, which creates a competitive environment,” she added.
“There are buyers eagerly waiting for the right prices to come online,” she stated.
“We are only 25 minutes from Lismore, making it a convenient commuting option,” she pointed out.
If they work in Lismore, many residents commute back to the city daily.
Further south, city dwellers are flocking to the coast in search of opportunities.
Ray White Kiama’s Michele Lay indicated that the region remains affordable, even within the luxury market.
This affordability stands in stark contrast to prices in Sydney, making it appealing.
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Lay mentioned that many buyers from Sydney choose to lease their properties until they are ready to retire.
“There’s a wonderful sense of community here,” she noted.
Additionally, she emphasized that the area is not overdeveloped.
Moreover, it boasts exquisite scenery and beautiful beaches, making it appealing.
KPMG regional economist Terry Rawnsley highlighted the resilience of regional economies in NSW.
“When we experienced that initial surge of people seeking a sea change or tree change, it revitalized these regional economies,” he explained.
However, Rawnsley cautioned that numbers can vary significantly in regional areas.
This fluctuation often depends on the specific stock being sold, which can influence market dynamics.
“Sometimes, in smaller markets, just a few significant trades can dramatically affect the numbers,” he stated.
In fact, this can make the market appear to be on the rise or, conversely, more subdued in the following year.
