Tasmania's Launceston and North East region is the best-performing regional market in terms of property value growth, according to the latest report from CoreLogic.
Launceston and North East region showed annual growth in both housing and unit market in April, reporting capital gains of 9.5% and 16.2%, respectively. The region was also the top-performing market in CoreLogic’s January 2020 report.
Eliza Owen, head of research at CoreLogic, said the uplift could be attributed to the spillover of demand from Hobart and a bullish sentiment towards Tasmanian property markets. However, these recent data capture much of the demand prior to the onset of COVID-19.
"Monthly CoreLogic data is showing rents and property values have started to slip across Hobart, which may draw local demand away from regional areas and back toward the capital city over 2020," Owen said.
Owen said some regions that performed poorly could potentially achieve stability in the next few months as housing demand shifts amid the COVID-19 outbreak.
"Parts of regional Western Australia may see some stability in housing values over 2020, off the back of increasing optimism in mining as China recovers from COVID-19. This could represent a reversal of the housing demand dynamics we've observed over the past few years," she said