Is Regional Australia Still a Safe Bet for Property Buyers?

Regional Australia has been a shining star in the property market, consistently outperforming capital cities. According to CoreLogic’s latest Regional Market Update, property values in regional areas rose 1.0% in the three months to January, while capital cities saw a -0.7% decline.

So, what does this mean for buyers, sellers, and investors? Let’s break it down.

What’s Driving Regional Growth? CoreLogic analysed the 50 largest regional markets and found some standout trends:

🔹 Western Australia and Queensland dominated the growth charts, with Geraldton (6.3%), Albany (5.9%), Mackay (5.7%), Townsville (5.1%), and Gladstone (4.3%) recording the strongest value gains.

🔹 Some previously booming areas are showing signs of slowing down—Gladstone’s quarterly growth has more than halved from 9.9% in July 2024.

🔹 28 markets have seen growth slow, including 10 out of 11 Queensland markets and three out of four WA markets.

Are Some Regional Markets Losing Steam?

📉 Geraldton’s growth slowed by 2.6 percentage points from its August peak.

📉 CoreLogic economist Kaytlin Ezzy warns that affordability constraints may start dampening demand.

📉 Mining markets like Gladstone, Townsville, Mackay, and Geraldton have added up to $140,000 to their median prices, but may now be cooling.

Where Are We Seeing Renewed Strength?

📍 Bathurst recorded a sharp turnaround, moving from a -1.8% decline in October to a 4.2% increase in January.

📍 Taree, Warragul-Drouin, and Ballarat are showing signs of stabilisation.

📍 Victoria and southern NSW, which underperformed in 2024, may be turning a corner as they regain affordability advantages.

Rental Markets: A Seasonal Boost or Long-Term Trend? Regional rental markets picked up in January, with rents rising 1.6% over the quarter, compared to just 0.3% in capital cities.

🏡 Busselton recorded the strongest rental growth at 4.6%. 🏡 Geraldton saw the biggest annual increase, with rents climbing 13.8% ($64 per week). 🏡 Warrnambool had the lowest vacancy rate at just 0.3%, indicating tight supply.

Will Regional Growth Continue in 2025?

✅ Affordability is still a key driver—regional markets remain cheaper than capital cities, attracting buyers priced out of metro areas.

✅ Hybrid work arrangements are here to stay, keeping regional demand steady.

✅ Interest rates remain a wildcard—any cuts in 2025 could reinvigorate regional demand.

✅ A busy spring selling season could increase supply, testing demand levels.

What Does This Mean for You?

📌 Thinking of buying? Some regional markets are still growing, while others are cooling—choosing the right area is key.

📌 Selling? If you’re in a high-growth market like WA or Queensland, now might be a great time to list.

📌 Investing? Rental demand remains high, but vacancy rates and affordability shifts should be considered.

Considering a move in the regional property market? Let’s chat!