Regional property markets continue to outperform capital cities
The Cotality May Regional Market Update revealed that growth in regional dwelling values has continued to outpace the capital cities since November 2025. In the three months leading up to April, values in regional areas increased by 3.3%, compared to just 1.1% in the combined capital cities. Although growth momentum has eased in recent months, regional areas have experienced a less significant decline than the capitals, largely due to factors like affordability and internal migration.
Regional Western Australia (WA) recorded the strongest growth over the three months to April, with a 5.9% increase. Regional Queensland (QLD) also showed strong growth, with both regions experiencing favourable selling conditions.
In terms of rental growth, regional areas slightly lagged behind the capital cities this quarter, with rents rising by 1.8% compared to 2.1% in the capitals. However, the vacancy rate in regional areas remains exceptionally tight.
Source: Cotality