By Terry Ryder | Australia's Leading Independent Property Researcher
A shortage of property supply in the capital cities is set to fuel a decade-long shift to regional centres, as regional housing markets continue to outpace the capital cities.
Property Council of Australia chief executive Ken Morrison says a lack of affordable urban supply will help to ensure that a population and capital shift to the regions will continue in most states over the next decade.
His comments came as CoreLogic reports regional markets have outperformed value growth in the cities in the last 12 months, rising 13% compared with a 6.4% gain in city values – led by a 22% rise in the Richmond-Tweed area of NSW, which includes Byron Bay.
Morrison says the flight to the regions will continue - and presents problems for locals priced out of their own markets and burgeoning strains on infrastructure as small towns contend with bigger populations.
“Infrastructure pressures are being felt right across Australia, but particularly in some of our faster growing regions,” he says. Read more from The Week In Real Estate