Regional Australia’s property market has hit its fastest quarterly value growth since the start of the rate tightening cycle, with Cotality’s data showing regional dwelling values rose 2.4% over the three months to October 2025. This is the strongest result since May 2022, outpacing most previous quarters—even as capital city values grew slightly faster at 2.9% over the same period.

But the heat is not evenly distributed. Three out of five of the largest 50 non-capital Significant Urban Areas (SUAs) saw their rate of growth accelerate compared to the previous quarter, making this a broad-based surge rather than just a handful of hotspots.

Western Australia is leading the charge:

These regions aren’t just posting big quarterly gains, but have also seen momentum shift sharply upwards in just three months.

Elsewhere, Mildura–Buronga (NSW/VIC) climbed 5.4%, and Toowoomba (QLD) rounded out the top five at 5.3% quarterly growth.

On an annual basis, Albany stands out with a 23.3% gain in median value, equivalent to a $136,000 jump in just one year. Sixteen other regions—especially in Queensland and Western Australia—also posted double-digit annual growth.

But not all regions are rising. The Bowral–Mittagong area in NSW is the outlier:

A handful of other areas—St Georges Basin–Sanctuary Point, Batemans Bay, and Bathurst—also saw values fall over the quarter.

What’s driving growth in the regions?

According to Cotality, the drivers have shifted. The early pandemic boom was all about lifestyle: sea change, tree change, working from home. Today’s momentum is powered by a different mix: affordability, capital city spillover, limited supply, and more competition for what stock remains.

Cotality’s economist Kaytlin Ezzy says:

“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.”

Markets where a buyer’s dollar stretches further are now leading. Regional Western Australia and inland Queensland, which have avoided the eye-watering price surges of the capitals, have become magnets for both owner-occupiers and investors with improved borrowing power. In these areas, stock is tight, and buyers are acting quickly.

Government support is playing a part, as recent rate cuts and the expansion of the First Home Guarantee feed buyer activity. Thankfully for those looking to buy in these areas, that growth isn't just among investors but also first-home and subsequent buyers. As borrowing capacity improves and affordable stock dwindles, regions with relatively low median prices are seeing the strongest competition and biggest price gains.

The shift isn’t uniform for everyone, however. Markets that surged during the pandemic like Bowral–Mittagong are now cooling, weighed down by high prices, longer days on market, and heavier discounts. “Affordability, or lack thereof, has been a factor tempering demand,” says Ezzy. For some regions, prices are still well below their 2022 peaks, and stock lingers longer than sellers would like.

Check out the full data pack over at Cotality.