Regional Australia’s property market has demonstrated significant renewed vigor, recording its strongest pace of quarterly value growth since the beginning of the rate tightening cycle. This resurgence signals a confirmed return to an upswing phase for regional hubs.
According to Cotality’s November Regional Market Update, regional dwelling values increased by 2.4% over the three months to the end of October. This rate represents the highest quarterly growth recorded since May 2022. While the combined capital cities saw a slightly higher lift of 2.9% over the same period, regional momentum is accelerating rapidly.
Drivers of the Regional Upswing
The forces driving this current boom differ significantly from the lifestyle-driven pandemic surge associated with remote work and the desire for space. Today’s growth is predominantly shaped by affordability, constrained supply, and competitive buying conditions in the capital cities.
Kaytlin Ezzy, Cotality Australia Economist, attributed the broad-based improvement to key economic supports, including improved borrowing capacity following recent rate cuts and the introduction of the First Home Guarantee scheme. These factors have resulted in buyers becoming “increasingly active across regional areas”.
The uplift in growth was widely distributed, with approximately 60% of Australia’s largest 50 non-capital Significant Urban Areas (SUAs) recording an acceleration in their growth rate compared to the previous quarter ending in July.
Western Australia Leads Performance
Regional Western Australia continued to dominate the performance metrics, confirming that markets offering accessible price points and tightly held stock are driving the strongest gains.
The top three quarterly growth markets (for the three months to October) were all in WA:
1. Kalgoorlie–Boulder (8.1% rise).
2. Geraldton (7.4% rise).
3. Albany (6.2% rise).
Further illustrating the focus on value, 19 of the top 20 quarterly performers had median dwelling values below $1 million. The high-performing WA coastal region of Busselton was the only exception with a median value of $1,000,130.
Albany was the undisputed annual leader, recording the largest increase among the top 50 regional SUAs with 23.3% annual growth (over the 12 months to October), equating to an uplift of approximately $136,000 to its median value of $721,253.
Weakness in NSW and Tight Rental Conditions
Not all regional markets shared in the momentum, however. The Bowral–Mittagong region in New South Wales recorded the only annual decline in values, falling -1.2%. This region also saw the longest median selling time (77 days) and continues to struggle with high median values, despite being below its peak from May 2022.
Simultaneously, regional rental market conditions tightened considerably. Regional rental values increased by 1.2% over the quarter and 6.1% over the year. Regional vacancy rates fell from 1.8% in July to 1.5% in October, with Launceston (TAS) experiencing the highest quarterly rental growth at 3.8%.
The outlook suggests that affordability will remain a key driver into 2026, fueling demand from both active owner-occupiers and rising investor participation, particularly in the middle and lower price points. This continued demand against constrained stock is expected to maintain upward pressure on values.
The current regional market is acting much like a low-cost carrier route: while the high-priced major hubs continue to grow, the fastest acceleration is seen in the secondary destinations where buyers can find a better ticket price against scarce inventory.