By AUSTRALIAN ASSOCIATED PRESS PUBLISHED: 15:25 AEST, 17 September 2018
Sydney's property market has long held a mortgage on real estate headlines, but analysts say home values in regional NSW are poised for stronger growth than those cooling off in the state capital.
The August CoreLogic Hedonic Home Value Index shows houses in the regions - including the coastal belt from Newcastle to the Tweed, and the areas surrounding rural arterial centres such as Bowral, Orange, Tamworth, and Dubbo - will increase in value into 2019 better than those in most of Greater Sydney.
Moody's Analytics said on Monday demand for houses in areas outside of Sydney had increased due to better affordability, with supply constraints, tighter credit conditions, and a strong recent run-up in home values a major factor.
"As potential homebuyers' incomes have not kept pace with the Sydney housing market, demand for areas outside of Sydney have increased, as affordability is better," the Moody's report said. "These include the Central Coast, which has become a hotbed for those tied to Sydney for employment but unable to afford the prices."