1. Despite rate rises, cost of living pressures, and market uncertainty, 35% of Australia’s regional coastal markets reached record-high housing values at the end of 2023.
2. The beachside suburbs of outer metro Perth experienced the largest gains in value in 2023, with Western Australia dominating the list of top coastal suburbs with the highest annual capital gains.
3. The top-performing coastal markets were those that offered a combination of value and lifestyle attributes, such as proximity to major cities, great beaches, and affordable housing prices.
4. The Richmond Valley in Northern NSW recorded the largest drops in value relative to their COVID peak, particularly in suburbs around Byron Bay. However, median dwelling values in these suburbs remain above $1 million.
5. Queensland’s Wide Bay-Burnett region had the largest gains since the onset of COVID, with values increasing up to 82.5% in some cases. The major centres of Bundaberg, Hervey Bay, Gympie-Cooloola, and Maryborough performed particularly well.
CoreLogic’s Analysis Reveals Resilience in Coastal Property Markets
Despite multiple rate rises, cost of living pressures, and market uncertainty, over one-third (35%) of Australia’s regional coastal markets recorded housing values at record highs at the end of last year. CoreLogic’s comprehensive examination of 368 coastal markets, located at least 50km from the nearest capital city CBD, unveiled a diverse spectrum of property performances, highlighting substantial variations between markets nationally.
Key Findings from CoreLogic’s Study
- Western Australia’s Strong Performance: Beachside suburbs of outer metro Perth recorded the largest gains in value in 2023, with Western Australia dominating the list of top coastal suburbs with the highest annual capital gains.
- Diverse Market Trends: The divergence between cities and regions was a defining trend of 2023, with coastal regions experiencing an increasing gap between top and bottom performers.
- Affordability Driving Market Growth: Markets that witnessed significant value growth last year benefited from affordability challenges in other regions, attracting buyers seeking value in regional areas of Western Australia and Queensland.
Top Performing Coastal Markets
- High Growth Suburbs: The top 20 highest growth coastal markets last year all had a median value well under $1 million, with Mulambin and Rosslyn on Queensland’s Capricorn Coast being the most expensive on that list.
- Value and Lifestyle Attributes: Suburbs offering a combination of value and lifestyle attributes, such as commuting distance to a major city, great beaches, and quality housing at affordable price points, outperformed more well-known areas.
Challenges in High-Value Markets
- Richmond Valley’s Value Drops: The Richmond Valley in Northern NSW recorded the largest drops in value relative to their COVID peak, with markets like Ocean Shores, Byron Bay, and Suffolk Park experiencing significant declines.
- Impact of Severe Weather Events: Severe weather events in early 2022 played a role in the recent weakness in these markets.
Coastal Market Resilience
- One in Three Markets at Record High: Of the 368 suburbs analyzed, 35% had values at a peak in December 2023, while an additional 8.7% of markets recorded a modest fall in value of less than 1%.
- Strong Gains in Wide Bay-Burnett Region: Queensland’s Wide Bay-Burnett region, the gateway to the Southern Great Barrier Reef, dominated the top spots on the largest gains list since the onset of COVID.
CoreLogic’s analysis highlights the resilience of Australia’s regional beachside markets, with a significant portion maintaining peak values despite economic challenges. The study underscores the importance of affordability and lifestyle factors in driving market growth and the varied performance across different coastal regions.