Australia’s regional property markets have continued their upward trajectory, though the pace has moderated, according to the latest figures from CoreLogic.
Market Trends and Affordability
Affordability challenges are beginning to curb the rapid price growth seen in recent years, particularly in coastal and country towns. A better balance between supply and demand is also at play, as more properties come onto the market and the pandemic-driven exodus from cities starts to ease.
The pandemic sparked a remarkable shift, with many Australians—especially millennial families—opting for the coast or countryside, fueled by newfound work-from-home flexibility. This surge in demand permanently recalibrated property values, lifting both home prices and rental rates across the regions. Currently, regional home values are 52.5% higher than pre-pandemic levels, a substantial leap compared to the 33.4% rise in capital cities. Regional rents, too, are up by 39.1%, outpacing the 35.4% growth in city rents.
Higher interest rates are adding to the cooling effect, reducing borrowing power and pushing affordability constraints to the forefront.
Recent Performance
In the three months leading up to January 31, 2025, regional home values rose by 1.0%, indicating a slowdown compared to previous quarters. However, the regional markets remain resilient, with many areas experiencing value increases. Notably, certain regions recorded growth above 3%, signaling robust market conditions in select locations.
Regional Queensland led the charge during this period, with Gladstone standing out for its significant rise in home values. Other notable performers included Townsville, Rockhampton, Kingaroy, and Mackay. In New South Wales, Lismore saw a notable increase, with Ulladulla, Muswellbrook, and Singleton following suit. Victoria’s market showed mixed results, with Swan Hill and Bairnsdale performing well, while Ballarat and Wangaratta experienced declines.
Outlook
As the year progresses, the traditional increase in listings during the Spring season will provide a critical test for both regional and city markets. Observers will be keenly watching how this influx influences property values and whether the current moderation in growth continues.
References
CoreLogic. (2025). National home values hold steady as regional Australia pushes to new record highs. Retrieved from https://www.corelogic.com.au/news-research/news/2025/national-home-values-hold-steady-as-regional-australia-pushes-to-new-record-highs
CoreLogic. (2024). 2024: A year of waning demand, rising supply and waiting for interest rates to fall. Retrieved from https://www.corelogic.com.au/news-research/news/2024/2024-a-year-of-waning-demand%2C-rising-supply-and-waiting-for-interest-rates-to-fall
Australian Property Update. (2025). Growth patterns shift in regional property markets. Retrieved from https://australianpropertyupdate.com.au/apu/growth-patterns-shift-in-regional-property-markets
The Adviser. (2025). Regional home values hit record highs: CoreLogic. Retrieved from https://www.theadviser.com.au/borrower/46657-property-prices
Australian Property Update. (2025). Home values hold steady but slowdown “likely to be short-lived”. Retrieved from https://australianpropertyupdate.com.au/apu/home-values-hold-steady-but-slowdown-likely-to-be-short-lived
Australian Property Update. (2024). Charts that explain Australia’s 2024 property market. Retrieved from https://australianpropertyupdate.com.au/apu/charts-that-explain-australias-2024-property-market
National Australia Bank. (2024). Regional NSW property market insights September 2024. Retrieved from https://www.nab.com.au/content/dam/nab/documents/reports/loan/nsw-regional-property-market-insights.pdf
ABC News. (2025). National property prices drop for first time in almost two years. Retrieved from https://www.abc.net.au/news/2025-01-02/corelogic-property-prices-national-drop-2024-wrap/104773908