Investors shift focus to suburban and regional markets as Australian urban housing prices surge. The impact has been felt across demographics. First-time buyers have had to delay their homeownership dreams indefinitely, while existing homeowners, particularly those on variable mortgage rates, have been struggling to keep up with repayments. The Australian property market, once one of the world’s most accessible for buyers, has become increasingly impenetrable for many.
Australia’s housing market has been grappling with limited supply, high interest rates, and multi-decade-low unemployment since the pandemic, creating a perfect storm of skyrocketing demand and unaffordable prices. In November, investment firm AMP’s chief economist Shane Oliver revealed that house prices nationwide were 34 percent above fair value.
This persistent unaffordability—expected to worsen in major cities like Sydney due to an anticipated immigration boom of one million people over the next 15 years—has triggered an exodus to previously overlooked towns and suburban areas, igniting a real estate boom beyond city centres.
According to PropTrack, a property valuation firm, Townsville in Queensland has seen house prices soar by over 80 percent in some areas over the past three years. Townsville’s median house price is now 41.4 percent higher than in January 2022, reaching AUD526,000. Other regional areas such as the Sunshine Coast and Byron Bay have also experienced sharp property price increases as city dwellers have sought more space, a slower pace of life, and, crucially, more affordability.
