Regional Markets Lead as Housing Momentum Builds
Regional Markets Take Centre Stage in 2025
While much of the spotlight usually shines on Sydney and Melbourne, 2025 is proving to be the year of the regions. According to the September Housing Chart Pack, national dwelling values rose 4.1% over the past 12 months, but it’s the regions that are driving growth, posting a 6.0% annual lift, compared with just 3.6% across the combined capitals.
Regional Strength at a Glance
Brisbane, Adelaide, Perth, and Darwin are all at record highs, with values climbing between 6–10% annually.
Lifestyle regions, from coastal hubs to hinterland towns, are benefitting from ongoing demand for space, affordability, and hybrid working arrangements.
Rental markets remain tight, with regional rents up 5.8%, outpacing capital cities at 3.4%.
Why It Matters for Investors
Affordability edge: Median values in many regional areas remain significantly below their capital city counterparts, offering more accessible entry points.
Stronger Rental Growth: Regional rents rose 5.8% in the past year, nearly twice the pace of capital cities (3.4%). This has helped maintain yields at higher levels — regional averages sit around 4.4%, versus just 3.5% in capitals
Lifestyle appeal: With infrastructure improving and flexible work now mainstream, the “tree-change” and “sea-change” trend shows no sign of slowing.
Tight Supply, High Demand: Total listings are 20.2% below the five-year average, keeping competition fierce and supporting price growth
The Policy Tailwind
From October 1st, the expanded First Home Buyer 5% Deposit Guarantee will open access to 63% of suburbs nationally (up from 33%). This injection of demand — particularly in unit markets where 93.7% now qualify — will add further pressure to already tight supply. For those looking to secure an investment, the regions are offering both resilience and momentum.
The Bottom Line for Investors
Expect ongoing capital gains in outperforming regional markets.
Look to regional yields to balance rising property values with income returns.
Factor in policy-driven demand, which will intensify competition for affordable properties.
Thinking of investing in high growth regional areas? We have opportunities available now. Get in touch with us today to start on your journey towards financial freedom.
