Beyond the Big Cities: The Case for Investing in Regional Australia Right Now

Written By Renee Williams

Regional Australia’s property market is in the spotlight for 2025—and for good reason. Driven by migration, affordability, and a fresh wave of demand from investors and “treechangers,” regional hubs have posted impressive results, making them some of the best places for property investment in Australia.

What’s Making Regional Property Shine?

  • Internal Migration Surge: Internal migration to regional areas remains almost 8.3% above pre-pandemic averages. Victoria led regional inflows at 34%, with Greater Geelong in first place nationally for new arrivals. Queensland’s coastal regions—especially Sunshine Coast and Gold Coast—remain perennial favorites, along with Toowoomba and Far North Queensland.​

  • Lifestyle & Hybrid Work: The rise of remote work is now an entrenched shift, giving regional areas staying power for both local and interstate buyers seeking better rents, prices, and quality of life.​

  • Affordability & Value: Median regional property values hit $673,373 by April 2025 and are now 58.7% above pre-COVID prices. Regional NSW’s median house price soared to $808,657, as lifestyle migration and limited supply pushed prices up.​

Price Growth and Returns—A Broader Look

Regional property values grew 5.3% in the last twelve months, almost double the 2.6% rise in the capitals. In Queensland, seven of the top ten highest-growth regions are outside Brisbane, demonstrating the strength of outer coastal and lifestyle markets. Western Australia led all states with a 13.2% annual uplift, doubling its previous year’s growth rate, while South Australia wasn’t far behind at 12.9%.​

In the three months to April 2025, regional values rose by 1.5%, outstripping the 1.0% gain in combined capital cities. Albany and Geraldton (WA), and Victor Harbor-Goolwa (SA) posted quarterly increases above 4%—with Geraldton rising an impressive 26.9% for the year.​

Rental Boom and Supply Squeeze

  • Annual regional rental growth reached 5.5% in April, almost double capitals’ 2.9% rate.​

  • Kalgoorlie-Boulder, WA, produced Australia’s highest rental yield (8.9%), while resource-linked and northern towns delivered yields well above 6%.

  • Vacancy rates below 1% in markets such as Port Macquarie and Orange confirm strong tenant demand and extremely limited supply.

Ongoing under-supply of new build approvals—down 10% in NSW for 2024—represents more than a blip, pointing to more upward price pressure as population inflows and investor competition intensify.​

Regional Hubs Outpace the Metro

While capital city property has seen recovery, regional Australia’s continued appeal is clear:

  • Population growth and sustained internal migration underpin strong demand, even as lending markets tighten and running costs rise.

  • Supply challenges (tight listings and delays in construction) maintain the region’s competitive edge.​

  • Investors seeking risk diversification, affordable entries, and solid rental returns are increasingly moving away from Sydney and Melbourne to regional favourites nationwide.​

Key regions like Albury-Wodonga (NSW/VIC), Ballarat and Bendigo (VIC), and lifestyle magnets Byron Bay, Central Coast, and Orange (NSW), remain closely watched for growth and yield.

PWF: Your Advantage In the Regional Boom

PWF leverages aggregated data from Australia’s leading research providers including CoreLogic, ABS, NAB, PropTrack and more. Investors benefit from:

  • Access to exclusive listings and expert analysis.

  • Local insights and national trends, with boots-on-the-ground experience.

  • Guidance for both new buyers and established owners, making regional investment smarter and less risky.

Want to be part of the next round of growth and discover investment opportunities tailored just for you? Contact PWF today and turn leading market research into your next property win.​

Enquire with PWF today
Renee Williams
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