A growing share of new business is now being driven by borrowers looking beyond the capitals, as regional markets deliver stronger price growth and comparatively affordable entry points for both first-home buyers and property investors.
With the typical capital city house price now above $1 million, more clients are testing how far their borrowing capacity will stretch in smaller cities and regions where mortgage rates and repayments feel more manageable.
According to the latest PropTrack Home Price Index, regional house values have risen faster than the combined capitals over the past year, with top-performing centres recording growth more than double that of major cities. Nine of the 10 strongest regional markets still have median house prices below $1 million, many in the $600,000–$700,000 range, offering comparatively accessible entry points and stronger rental yields for investors.
Rockhampton leads regional Australia for annual house price growth, rising almost 19% in the past year to a median of $631,000, with other Queensland locations such as Townsville, Cairns, Gladstone, Mackay, and Bundaberg also posting double‑digit gains.
PropTrack senior economist Anne Flaherty (pictured) notes that the upswing is backed by long‑running population shifts.
“Over the long term we see more people moving to regional areas,” Flaherty said.
The latest Regional Movers Index from the Regional Australia Institute and Commonwealth Bank showed 32% more people moving from capital cities to regions than in the opposite direction, and net regional migration sitting 51% above pre‑COVID averages.
Flexible work, lifestyle moves, and industry growth – particularly in sectors like mining – are bolstering local employment and housing demand, supporting sustained buyer enquiry for brokers.
Rockhampton-based agent Todd Brandon says sentiment remains upbeat.
“It’s a secure and stable region to invest in, whether you're buying a home or investment property,” Brandon said.
For borrowers comparing metropolitan and regional options, the affordability gap is stark.
Toowoomba’s median house price is about $416,000 cheaper than Brisbane, while units are around $221,000 less, yet Toowoomba has recorded house price growth of 17.8% and unit price growth of 28.6% in a year. Its growing appeal is also being underpinned by improved transport links and commutability to Brisbane, which are broadening the pool of potential buyers and tenants.
In Launceston, where house values are up 17.5% year-on-year, local agent Michael Dearsley says momentum is attracting more investor interest.
“The investors that I talk to agree it’s got the correct metrics for future growth,” Dearsley said.
He also points to a shortage of rental stock, strong interstate migration and rental returns that remain compelling relative to purchase prices, all of which are supporting firm yields and sustained investor interest.
Economists caution that some smaller regional markets are heavily exposed to single industries such as mining, manufacturing, or tourism, meaning brokers need to stress test clients’ serviceability against potential employment or income shocks as well as rising mortgage rates.
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