Residz Team 3 min read
Graph: Residz - agency direct referrals June 2022
Residz can now serve up a compelling piece of the pie chart showing the extent to which Aussies are flocking to regional areas. New data from our property research platform clearly illustrates that over 60% of potential buyers are engaging with listings from rural and regional estate agents.
It comes on the back of CoreLogic Home Value Index news that buyers are now interested in regional suburbs at least three hours from capital cities, with this part of the property market seeing the largest rise in dwelling values in May, some by as much as 55 per cent. (Source: SMH).
More interest in properties outside major cities
Our own data comes from our unique platform that allows property sellers to list their home for sale at no cost. We showcase a range of properties from real estate agent’s books across Australia, and by tracking interest in those properties we can see clear trends.
Most obvious is the high level of interest in properties outside major cities over the first six months of 2022.
Despite market leaders such as Ray White and L J Hooker’s agencies getting a considerable portion of user interest, the Top 10 agents’ brands list includes those agents with an historic presence largely in regional areas; Barry Plant, Elders, Harcourts and Century21.
Elders say farmland becoming more valuable
The best example is Elders at number 6 whose scope has traditionally been more aligned to rural properties. The Elders Rural Property Update released in April 2022 showed how this growing interest in rural and regional properties is lifting prices at record rates.
It reported a “significant increase” in the national price of farmland rising to $7,060/ha, up 18.4% on 2020 prices.
Tom Russo, Elders Executive General Manager Real Estate, said in the report
“There remains a seemingly insatiable appetite for Australian farmland from both local players and large institutional investors.”
Strongest areas of demand in Q4-2021 were in Queensland (median price per hectare rises of +26.9%), South Australia (+32.0%) and Tasmania (+37.7%). In contrast, prices decreased in New South Wales (-0.7%) and Western Australia (-25.2%).
Harcourts in number 3 position on our list
Another real estate agent in the Residz Top 10 is Harcourts at number 3 which has more than 400 office branches across their network but again are heavily aligned to rural, regional, and coastal properties.
In fact in 2020 Harcourts joint ventured with Nutrien Ag Solutions, the world’s biggest provider of crop nutrients, feed, crop production and services.
The Agency shows areas popular with tree and sea changers
Seventh on our list is The Agency real estate. In its most recent property report The Agency CEO Matt Lahoud wrote of the phenomenon of people relocating to the regions.
“The Southern Highlands, Central Coast, Illawarra and Hunter regions in NSW are all beneficiaries of this trend,’ he said. “So too are areas such as the Mornington Peninsula and Surf coast in Victoria and, of course, Queensland’s Gold Coast and Sunshine Coast. I expect that these will continue to be among the highest growth areas over 2022.”
Matt says buyers over the age of 55 are expected to cash in on recent growth.
“Many in this group are still working but have greater flexibility in their employment than less mature buyers,” he writes in the report. “They’re often looking to sell the family home and split the proceeds of that sale between a city pad and a larger regional home. Often, if there’s money left over, they’re also funding their children into the purchase of their first home.”
Barry Plant says buyers lured by affordability
Barry Plant real estate (9th on our list of Top 10) began in metropolitan Victoria, but in 2006 the group expanded into regional Victoria and a decade later opened its first South Australian office. With 75 offices, Barry Plant says demand for homes in regional Victoria continues to grow, particularly in Bendigo, where buyers are lured by affordability and the country lifestyle.
Even when we analyse the top two real estate agents for search volume, leading brands Ray White and L J Hooker, we see trends away from the larger city-centred agencies when compared to available statistics from pre-COVID enquiries.
If you’re considering purchasing or renting a house in a regional area, make sure you download our free property report our for that address. We have 12 million addresses in our database, with every report offering information on internet speeds, crime trends, bushfire and flood risks, investability scores and a whole lot more.
Image: Residz