‘Hidden gems’: Top 10 regional markets revealed
These 10 regional hotspots have everything to please investors and buyers alike: affordable prices, low vacancy rates, strong rental yields, and multimillion-dollar project pipelines driving future growth.
A new report from PRD Real Estate highlighted the top 10 affordable regional areas where value, growth, and lifestyle come together, offering the best choice for prospective buyers.
Through their latest report Smart Moves: Regional Edition 2025, PRD chief economist Dr Diaswati Mardiasmo analysed the data of each local council in regional areas to find the top 10 markets.
The report used five key factors: affordability, sales growth, rental yields, upcoming development, and employment strength.
It selected areas with lower property prices than capital cities, strong price and rental performance, infrastructure projects, and unemployment rates at or below the national average of 4.1 per cent.
“If you look at affordability only, 60–80 per cent of regional areas are available for investment, but if you add the other requirements, such as infrastructure, rental performance and new stock, you cut that number roughly in half, significantly narrowing investment options,” Mardiasmo said.
In total, the report found 10 places that matched all the criteria, which were deemed “hidden gems”.
According to PRD, the 10 locations – Cairns, Whitsundays, and Southern Downs in Queensland; Dubbo, Port Macquarie-Hastings, and Shoalhaven in NSW; Bendigo, Greater Shepparton, and Wodonga in Victoria; and Burnie in Tasmania – offer a unique combination of affordability and strong future potential
“In comparison to the capital cities, most of these places are at least 40–45 per cent cheaper,” Mardiasmo said.
“The biggest surprise is some of the names you can find on that report, some places like Cairns or Shepparton are quite well-known, but the others, not many would have heard about them.”
“You would believe that they are towns in the middle of nowhere, but they are attractive and often bustling with activities.”
According to Mardiasmo, Southern Downs, Dubbo, Wodonga, and Shoalhaven should be on investors’ radar as each town has great opportunities for capital gain and rental yield.
She said that while Southern Downs is often overlooked due to its location in the far south of Queensland, it has strong fundamentals and stands out with nearly $2 billion in upcoming projects, significant infrastructure growth, and emerging industries.
Similarly, Mardiasmo said that Dubbo is an unexpected hotspot offering solid investment potential.
“Dubbo is becoming a hub for renewable energy, with battery and solar farms driving over $1 billion in development, making it one of the most promising regional areas for future growth and commercial activity,” she said.
Also in NSW, Shoalhaven, a smaller, tucked-away area near the beach, has surprised many investors by meeting strong investment criteria despite being less prominent than places like Newcastle or Port Stephens.
“With close to $1 billion in infrastructure and commercial projects, Shoalhaven is proving to be a quiet achiever with increasing growth potential.”
Mardiasmo said while investors have been familiar with areas like Bendigo and Shepparton, Wodonga in Victoria offers a strategic location and high growth potential.
“Wodonga is becoming a bustling commercial hub with major freight and highway connections, it’s attracting significant infrastructure investment and development, positioning it for strong future performance.”
According to Mardiasmo, while many people assume regional areas are risky due to limited economic activity, these towns offer vibrant, well-developed communities.
She said each of the 10 regional hotspots offers investors and buyers great security as each area has financial stability through affordability, low unemployment, and growing infrastructure.
“For owner-occupiers, the areas provide job and lifestyle security, while investors benefit from higher rental yields, lower vacancy rates, and limited competition from oversupply, ensuring more stable and secure returns.”
Mardiasmo said that regional property markets have outperformed capital cities like Sydney, Melbourne, and Brisbane in 5- and 10-year growth, and proved more resilient during economic shocks like COVID-19.
“With better value for money and lifestyle appeal, regional areas are becoming increasingly attractive, even prompting thoughts of relocation from city-based professionals,” she concluded.