Regional property markets continue to outperform capital cities.
Regional property markets continue to outpace capital city markets. According to recent data from Cotality, regional dwelling values grew 3.2% over the three months to January, while capital cities recorded a more modest growth rate of 2.1%. The growth reflects changes in the market as affordability, renewed internal migration and competitive conditions direct buyers towards regional areas. The focus on affordability has become a key driver of buyer behaviour, encouraging buyers to look beyond metropolitan areas in search of better value.
Regional Western Australia experienced the strongest increase in property values, with a rise of 6.1% over the three months to January. Wagga Wagga emerged as the top performer, recording an 8.1% increase in property values during the same quarter. Queensland and South Australia also experienced strong growth during the three months. Additionally, rents in regional areas increased more rapidly than those in their city centres, with a rise of 1.6%. Over the past five years, regional rents have surged by 41.9%.
