Regional house price growth doubles capital cities

CoreLogic data released on Tuesday found house prices in Australia's regions doubled the growth in capital cities in the past year.

Regional prices grew 13 per cent in the past 12 months, compared to 6.4 per cent across capitals.

The capital region - encompassing Queanbeyan, Yass, Goulburn and the South Coast - was among the strongest performers throughout regional NSW.

House prices across the NSW capital region jumped 17.5 per cent in the past year, while unit prices rose 14.6 per cent.

The median house price in the capital region now sits at $596,504 and is $356,829 for units.

CoreLogic research director Tim Lawless put the rapid growth down to a increase in people working remotely, and spending on holiday homes.

While prices have spiked, the regions remained more affordable than big cities.

"No doubt the more affordable housing options across many of Australia's regional markets is another incentive; in April there was a $247,400 difference between the median value of capital city dwellings and regional dwellings," he said.

Byron Bay, in the Richmond Tweed region, now boasts a higher median house price than Greater Sydney - $1.4 million compared to the city's $1.1 million.

The Richmond Tweed region in the state's north led nationally with a 21.9 per cent house price growth over the year.

Mr Lawless said regions would likely have higher than average demand in the future, particularly areas close to capital cities.

While surging values are probably good news for homeowners in these regions, for those that dont own a home, affordability is being stretched," he said.

"Particularly for long-time locals whose incomes are unlikely to be rising at anywhere near the pace of house price appreciation, they may be forced to seek out housing options further afield."

Canberra's median house price soared to a record high of $927,577 last month, cracking the $900,000 milestone for the first time.

It marked a 9.7 per cent quarterly increase and and 19.5 per cent annual price growth - the steepest in 17 years.

Agents say Canberrans are moving across the border in search of lower prices not far from the city centre, but Queanbeyan and surrounds are now seeing major spikes in prices.

Independent Queanbeyan principal Vic Srbinovski said he recently sold several apartments to Canberra buyers unable to break into ACT market.

"They're coming across the border to get themselves a unit in the $250,000 to $300,000 mark," he said.

"[Queanbeyan] prices are still creeping up ... we had a few that sold for easily 30, 40 or 50,000 over [expectations]."

Ray White Queanbeyan director Brad O'Mara said buyers were being pushed out of Canberra's inner suburbs to Woden and then across the border.

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"Jerrabomberra seems to get the same buyers as the Woden Valley," Mr O'Mara said.

Mr O'Mara said there had been a dramatic increase in attendance at open homes since last year, which he said was partly a result of the fear of missing out.

LJ Hooker Queanbeyan director Jason Maxwell has also seen a "significant" increase in interest.

From an average of eight groups two years ago, he will now see about 30 walk through a home.

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