Regional property markets are outperforming capital cities, with housing values rising 3.2 percent over the three months to January 2026.
Cotality’s Regional Market Update shows this compares with an increase of 2.1 percent in capital cities during the same period.
The results mark a clear shift in market momentum, as affordabililty, renewed internal migration, and competitive conditions direct more buyers towards regional areas.
Almost three in five of the country’s largest Significant Urban Areas recorded a faster pace of growth, pointing to a deepening divergence between city and regional markets, Cotality Head of Research for Australia Gerard Burg said.
“Affordability remains a powerful driver of buyer behaviour,” Mr Burg said in a statement.
“With capital city prices still near record highs and stock levels tight, many households are once again looking to regional Australia for greater value and liveability.
“We’re seeing momentum build across a wide range of regional markets, from inland hubs to coastal centres, and mining-adjacent regions.
“This reflects a renewed movement of people and capital into areas where buyers’ budgets stretch further and competition for available homes is strong.”
In Queensland, the stand-out regional areas were Toowoomba, Bundaberg, and Cairns, with median time on the market below 20 days.
Regional Western Australia recorded the strongest uplift in any state, while New South Wales and Victoria showed little change from the previous quarter.
Regional rents also rose faster than their city counterparts in the three months to January – rising 1.6 percent, slightly ahead of the capital cities at 1.4 percent.
