Property prices in regional Australia's 25 biggest markets increased by 4.7 per cent in the three months to April, easily outpacing capital city markets but well down on their 2021 high of 6.6 per cent.
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Over the past 12 months, prices in those same locations grew by 23.9 per cent - well ahead of the 14.6 per cent in the combined capital city markets - according to CoreLogic.
The Hunter Valley, in NSW, was the strongest performing market for houses with annual growth of 34.3 per cent as the shine began to come off the Southern Highlands and Shoalhaven, the previous high performer that's now recording annual growth of 33.3 per cent.
CoreLogic's research director Tim Lawless said that it was likely affordability pressures in the Southern Highlands and Shoalhaven - and not a dramatic change in the Hunter market's fortunes - that led to the changing of positions.
"We are likely seeing worsening affordability pressures limiting the rate of growth across the Southern Highlands and Shoalhaven, where the quarterly rate of growth has reduced from 9.7 per cent late last year to 5.6 per cent over the most recent three month period," he says.
The Launceston and North East region in Tasmania was the strongest performing unit market with values rising 30.9 per cent across the 12 month period.
A surge in demand for regional housing stock has seen sales volume increase by nearly half in some of the areas analysed by CoreLogic.
The New England and North West region in NSW recorded a 42.9 per cent increase in house sales over the year to February.
