Why living near a capital city no longer guarantees your property will gain value

Ray White chief economist Nerida Conisbee says regional markets near capitals are usually shaped by the capital city cycle. Living near a capital city used to almost guarantee property gains, but new data shows proximity alone no longer drives regional house price growth. The Ray White research, captured over 10 years, compared median house price trends across selected regional markets near major capitals with the performance of the nearest capital city. Aerial photo of city centre of Geelong in Victoria. “The clearest pattern is that regional markets near capitals are still shaped by the capital city cycle,” said Ray White chief economist Nerida Consibee. “When the nearest capital has been strong, nearby regional markets have generally benefited; when conditions have softened, that weakness has also flowed through.” MORE NEWS: Bachelor lovers call it quits in ‘circumstances’ Family lands $11.5m penthouse deal Aussie ‘survival estate’ with cattle farm sells Aerial of the Sunshine Coast in Queensland. On average, regional markets near Sydney, Melbourne, Adelaide and Perth have outperformed their nearest capital city since 2016. “The largest differences are around Melbourne and Perth...