Property markets in numerous regional cities/towns in NSW, VIC and QLD have gained momentum over the last few years (I'm not suggesting a similar phenomenon hasn't occurred in the other states/territories as well but I don't explicitly know). Thus markets across Australia are highly segmented, however, prices have historically been driven, to a considerable extent, by the growth in the capital cities; basic research demonstrates a distinct correlation between price growth in the capital cities and regional cities/towns.
On that note, the next few years will be particularly interesting for regional cities/towns as the recent boom in Sydney/Melbourne and some price growth in Brisbane/Adelaide coincides with a large proportion of Baby Boomers who live in the capital cities but are shortly retiring.
"When Australia's baby boomer population equates to 4.45 million people, even if only a small portion did relocate, it will create significant extra demand for housing in the regions," Mr Pressley said.
"Whether coastal or rural, we believe that the regional cities that will be in highest demand by baby boomer relocators will offer a combination of quality lifestyle, good health care and availability of free-standing houses for less than $400,000," Mr Pressley said.
