Homebuyers are choosing a regional lifestyle over city life, as property values across Australia's regions remain resilient in the face of declining prices in capital cities.
House prices in about three-quarters of regional Australian suburbs recorded a one per cent increase over the three months to January, according to housing analyst group CoreLogic.
In contrast, properties in almost half of suburbs in capital cities dipped 0.7 per cent, with three in four Sydney suburbs and nine out of 10 Melbourne suburbs experiencing a decline in home values.
More affordable options across the regions, an increase in supply in the capitals and a net increase in regional migration has helped keep prices resilient, CoreLogic economist Kaytlin Ezzy said.
"We're almost five years on from the onset of COVID-19 and it appears that remote and hybrid working arrangements are here to stay," she said.
"With more people able to prioritise lifestyle over job location, the flow of internal migrants to regional markets has settled higher than the levels seen pre-COVID, helping to support housing demand."
Worsening affordability leading to a build up in the numbers of properties for sale and easing overseas migration has helped swing selling conditions back in favour of capital city buyers, Ms Ezzy said.
Price declines are gripping Sydney and Melbourne but are also starting to creep into Brisbane, Adelaide and Perth as their growth momentum slows.
Overall, national home values fell 0.3 per cent over the quarter leaving the combined residential real estate market valued at an estimated $11.1 trillion in January.
