Regional Australia is having its moment in the sun – and it’s not just because of the weather.
The recent data from Cotality (formerly CoreLogic) show regional property markets are still outperforming the capital cities when it comes to quarterly growth. Regional dwelling values rose 1.5 per cent over the three months to April 2025, compared to a 1 per cent lift across the
combined capitals.
Now, I know what you’re thinking: “Haven’t I missed the boat on regional property?” The answer is, maybe not – but you do need to go in with your eyes wide open. Because while regional markets might look like a golden opportunity, they still come saddled with a few of
their own difficulties.
And you just can’t generalise about “regional property” as every region is different and have their own unique nuances.
Here’s what you need to know to help you decide if buying regional – whether as an investment or for a lifestyle change – makes sense for you.
The upsides: Why regional property is back on the radar
1. Growth still looks good
Some regional areas are absolutely booming. Albany in Western Australia was the top performer last quarter, with dwelling values rising 7 per cent. Geraldton followed at 4.5 per cent and Victor Harbor in South Australia wasn’t far behind at 4.2 per cent.
And the annual growth figures? Huge. Geraldton surged by 26.9 per cent year-on-year – that’s an increase of around $107,000. Gladstone, Townsville, Mackay and Albany also notched up annual price growth above 20 per cent.
These are big numbers, especially when some capital city markets are only just starting to pick up steam again after a shaky start to the year.
2. Yields are strong – and properties are moving fast
While rents have started to ease a little across the regions (up 5.5 per cent over the past year compared to 2.9 per cent in the capitals), they’re still going strong in a few big areas. Albany topped the rent growth leaderboard last quarter with a 5.7 per cent lift, followed by Burnie–Somerset in Tasmania (4.4 per cent) and Taree in New South Wales (3.9 per cent).
And sellers in places like Rockhampton, Gladstone, Mackay and Townsville aren’t even having to wait two weeks to shift their homes, with median times on market as low as 11 to 13 days.
That tells you demand is still very healthy – especially in resource-linked and lifestyle-driven towns.
3. Affordability is still a drawcard
This is a big one, especially for first time home buyers and investors who’ve been priced out of the big markets: Sydney, Melbourne and Brisbane.
Lots of regional centres will give you lower entry prices, better bang for your buck and the opportunity to pick up homes with land – something increasingly rare in the inner city. It can be a good way to build equity if you choose the right spot.
The downsides: There are trade-offs
1. Not all regional markets are equal
While places like Geraldton and Albany are flying high, others are starting to wobble. Bathurst and Nelson Bay saw small declines last quarter, and Warrnambool was the worst annual performer, down -4.2 per cent.
The performance gap between the best and worst regional markets has narrowed to 7.3 per cent – half what it was this time last year. So, the days of everything booming are over. You’ll need to be selective and do your homework.
2. Selling can be tough in slow markets
While some towns are seeing homes snapped up fast, others are stagnating. Properties in Bowral–Mittagong (NSW) spent a median of 77 days on the market, and sellers there were discounting by as much as -5.3 per cent to get their deals over the line.
That’s the reality of regional markets – they’re smaller and more volatile. If demand dries up, it can take far, far longer to exit and cost more to do so.
3. Lifestyle isn’t always the dream
It’s tempting to pack up and move to the coast or the bush, but major lifestyle changes don’t always pan out. You need to think through job opportunities, schooling, healthcare, community and whether it’ll still suit you five or ten years down the track.
Regional areas can also be more exposed to downturns in single industries (like mining or tourism), which makes them riskier from a long-term investment perspective.
Is regional right for you?
If you’re priced out of the city but keen to build wealth, I reckon regional property can still be a solid option. But you need to go in with a clear understanding of all the risks, as well as a buffer in case things don’t go your way.
For investors, look for areas with strong infrastructure, diverse employment bases and tight rental markets. And always stress-test your finances – rising interest rates or a couple of vacant months can really sting your hip pocket.
For homebuyers chasing lifestyle, just make sure the area supports the life you actually want, not just the one you think you’ll enjoy on holidays.
As always, get good advice, do your research and don’t fall for FOMO. Regional might be back in vogue – but smart decisions will always be in fashion.
