Sea and tree changers are still driving regional property prices up.

The desire for a lifestyle property has not been quenched according to Domain, with its latest figures showing 92% of regional areas recorded a property price rise in the past quarter.

Chief of Research and Economics, Dr Nicola Powell says many regional house prices are still outperforming their city counterparts, in a trend which has been evident for several years.

“The ability to work from home has allowed metro workers to continue to seek regional housing, changing the demographic and outlook of house prices in these areas” she says.

Powell says Regional South Australia had the biggest growth, with is values 5.4% higher than the previous quarter.

She says most regional markets have hit their peak and she expects a slowdown in the annual figures.

“But many of these regions are unlikely to head back to pre-Covid prices given that the areas are still more affordable than houses in the capitals,” Powell says.