Local Property: Homes in Werris Creek, Warracknabeal still affordable despite Covid migration

After what may have been a one-off boom, regional property prices have cooled, which could be welcome news for those still trying to break the hamster wheel.

However, for those willing to leave the bright city lights far behind, there are some areas with solid capital growth that are particularly affordable.

In the Covid era, many city dwellers were freed from the shackles of the daily commute to the office, allowing them to relocate to regional areas for a lake or tree change, resulting in a surge in property prices.

In the New South Wales town of Werris Creek, you can pick up this chic property for $190,000, which is below the average price

Since March 2020, the median price for Australian regional areas has skyrocketed 41.6 per cent, but has fallen 5.7 per cent since June under pressure from rate hikes.

While most regional areas made progress over the past year, the coveted NSW region of Richmond-Tweed, which includes the northern rivers Ballina, Byron and Lismore, fell 11.7 per cent in the most recent quarter.

Repeated flooding has also helped homes, which fetched a median of more than $1 million at the market’s peak, plummet to $842,500.

Repeated flooding in the Lismore area, like this deluge in March, has pushed house prices down

The other regions with significant declines were NSW’s Southern Highlands and Shoalhaven at 7.1 per cent, reflected in a 7.1 per cent decline on south-east Queensland’s Sunshine Coast.

The Gold Coast saw real estate fall 6.4 percent, according to Core Logic, while the Illawarra saw a 6.1 percent drop and Newcastle and Lake Macquarie fell 6 percent.

If you’re looking for a cheap home and are willing to venture far out of town, there are places where strong growth in value hasn’t pushed homes outside of the realm of affordability.

A modest property price of $212,648 can be found in the Victorian wheat belt town of Warracknabeal, 338 km northwest of Melbourne.

To find a property in South Australia for around $382,466 you could try Port Macdonnell, some 477 km south-east of Adelaide, while in Queensland you can find a cheap house for $186,025 in Monto, 474 km north of Brisbane can get hold of.

The charming Queenslander in the Sunshine State is priced at just $172,000, which is again just a little below the average price for the area

The average house price in Collies, 200km south of Perth, is just $240,327, while in George Town, 50km from Launceston, you can find houses for around $377,487.

Travel 378km northwest of Sydney and you can snag a home in the town of Werris Creek for around $244,806.

While some regions are reeling, others remain relatively buoyant, and in regions generally, Covid’s struggle to get out of the city still has many prices well above what they were before the pandemic.

For the past year, regional medians are still up 3.2 percent, compared to capital cities, which have fallen 5.2 percent over the same period.

While city prices are still 13 percent above pre-pandemic levels, this increase is being overshadowed by regional real estate being 35 percent more expensive than before Covid.

In the top 20 markets, typically near capital cities or near the beach or in pleasant rural settings, this has meant an increase in median prices from $306,000 to $527,000.

In the Victorian wheat belt town of Warracknabeal, this three-bedroom apartment costs $229,000, which is slightly above the city’s average price

According to Domain Chief of Research and Economics, Dr. Nicola Powell, remote working during the Covid period has prompted many Australians to enjoy the benefits of life away from the capital cities.

“The global pandemic has resulted in one of the biggest lifestyle changes Australians have experienced,” she said.

The most popular areas were often still near the main cities, or near a beach, or maybe wineries.

This home spot with a built in garage will set you back $205,000 which is well below the average price for the WA town of Collie

The Gold Coast and Sunshine Coast of southeast Queensland absorbed the most people from the capital cities, with a net inflow of 37 per cent, compared to regional NSW (27 per cent) and regional Victoria (23 per cent).

The best performing region over the past year was the South East Adelaide area.

It posted 21.7 percent growth, followed by the New South Wales regions of Riverina and New England and North West, which grew 20.5 percent and 19.8 percent.

In the most recent quarter, central Queensland was the only region to see average prices rise, while South East Adelaide and Bunbury in Western Australia remained stable.