Regional growth lifts to strongest pace since the start of the rate tightening cycle

Source: Cotality

Cotality’s November Regional Market Update shows regional dwelling values rose 2.4% over the three months to the end of October, their highest rate of growth in more than three years.

Cotality Australia Economist Kaytlin Ezzy said although capital city values lifted 2.9% over the same period, the continued uplift in the regions quarterly growth trend confirms the return to an upswing phase.

“Demand is being shaped less by lifestyle changes and more by affordability, constrained supply and competitive buying conditions in the capitals. The latest results confirm a renewed uplift in value growth across the regions, with buyers seeking value and accessible price points,” she said.

Ms Ezzy attributed the broad-based improvement to several factors including a tightening in supply and renewed buyer activity, following rate cuts and the introduction of the First Home Guarantee.

“Just like the capitals, buyers have become increasingly active across regional areas, with improved borrowing capacity coming up against constrained stock, helping to push values higher,” she said.

“Affordability is certainly playing a part with the strongest growth markets concentrated in regions where a buyer’s dollar stretches further despite scarce stock. As they have done for the past few years, pockets of inland Queensland continue to be some of the best performing areas."

Regional rents pick up pace as vacancy rates tighten

Regional rental growth conditions strengthened through the quarter, supported by vacancy rates tightening from 1.8% in July to 1.5% in October.

Demand drivers and outlook

Affordability will remain a key driver for regional areas into 2026, as demand grows across the middle and lower price points.

“ABS lending data shows that a record level of investor interest is emerging alongside consistent demand from first home buyers and subsequent buyer households.”