Mining Regions Fuel Regional Property Market Growth

Mining hubs in Australia are driving regional property markets to outperform urban counterparts, though some areas lag behind in price growth.
Regional dwelling values rose 1.1 percent in the three months to October, compared to a 0.8 percent increase in capital cities, according to CoreLogic’s latest Regional Market Update.
This marks a decline from April’s growth of 2.3 percent in regional areas and 2.2 percent in cities.
Western Australia and Queensland mining regions are at the forefront, with property values in Mackay, Geraldton, and Townsville soaring by 8.8 percent, 8.2 percent, and 6.6 percent, respectively, over the quarter.
Over the past year, house prices in these markets surged by more than 25 percent, supported by affordability and lifestyle appeal, according to CoreLogic economist Kaytlin Ezzy.
“Despite this impressive growth, homes remain attainable for many buyers with median prices below $600,000,” Ezzy noted.
Complementing these findings, the Domain House Price Report, released in August, highlighted exceptional growth in Australian mining towns, where house prices in some suburbs climbed nearly 30  percent over the past year.
For example, Mount Morgan and Blackwater in Queensland recorded annual increases of 29.7 percent and 19.9 percent, respectively, with median prices now at $207,500 and $215,000.
Domain’s chief of research, Nicola Powell, stated, “Property prices in mining regions tend to experience sharper boom and bust cycles compared to major cities.”
Over the year, 10 southeastern regional property markets recorded annual price drops. Ballarat in Victoria posted the steepest fall, with values dropping by 6.3 percent.
On top of these setbacks, Victoria faces a housing supply shortfall amid a growing population.
In response, Premier Jacinta Allan announced an inquiry into regional housing supply, construction methods, and dwelling types, with a report due by the end of 2025.
“Demand in these areas has slowed, with more properties on the market alongside higher interest rates, cost-of-living pressures, and reduced borrowing capacity,” explained CoreLogic’s Ezzy.
However, economists from ANZ and CBA still anticipate a February 2025 easing, marking the first reduction in over four years.
On Oct. 22, RBA Deputy Governor Andrew Hauser pushed the timeline for rate cuts to May 2025. He warned that while inflation may have peaked, it remains high enough to warrant caution in monetary policy.