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Regional and coastal properties to resist slowing market
While the national property market has slowed in recent months, regional centres, from coastal towns to mining hubs, have proven resilient in the face of a downturn.
As with capital cities, regional areas have been experiencing an uneven downturn, with property prices declining at varying rates across markets.
Recent data from Cotality showed that dwelling values declined by 0.1 per cent across regions, compared to a 2.5 per cent drop in the capitals.
Cotality head of research Gerard Burg said buyers had begun to reassess their purchasing decisions, pivoting away from the capital city markets.
“As higher-value markets lose momentum and buyers become more cautious, we’re seeing demand swing to more relatively affordable regional centres,” Burg said.
While regional locations had outperformed the capital cities, McGrath Estate Agents’ founder John McGrath said the gradual slowdown seen in the first quarter of 2026 continued.
“Some regional hubs on the East Coast experienced weakened sales and rental conditions, but many smaller inland towns are becoming increasingly popular for their affordability.”
Coastal town, mining hub, and inland wonders
McGrath said that population inflows had played a significant role in the growing strength of the regional markets.
He said that the Queensland regional hubs of Maryborough and Hervey Bay were among the strongest-performing markets.
With Hervey Bay’s population increasing by almost 18 per cent from FY2017 to 2025, the town had seen its median house values rise to $824,533.
McGrath said that in addition to the increase in house values, Hervey Bay has seen a rise in listing numbers and a drop in sales, opening the door for purchasers to buy near the beach.
While communities along the Queensland coast strengthened, McGrath said growth was not restricted to the coastline, with inland NSW hubs also experiencing strong growth.
He said the affordability of Albury-Wodonga, Tamworth, and Dubbo had led to strong results for investors, while protecting them from declines in values.
“Median values in these centres now stand at an attractive $622,555 to $688,935,” McGrath said.
According to McGrath, regional Victoria’s property market had seen similar trends emerge, with Geelong, Warragul, and Drouin developing a buffer against downturns, despite recording quarterly value declines.
Additionally, he said that Inland mining towns such as Traralgon and Morwell experienced the greatest annual change in sales at 42.4 per cent, despite listing numbers being 35.3 per cent lower than a year ago.
“Our regional areas are undergoing a correction that is almost on par with our capital cities, and smaller towns are now the places to watch.”
“With spring beginning, this point is especially significant for buyers looking for affordability and growth.”
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