Australia’s regional property markets continue to outperform capital cities, with new data revealing stronger price growth in regional areas.

According to CoreLogic, property values increased in 72.6% of regional suburbs in the three months to January, compared to 51.4% of capital city suburbs.

CoreLogic economist Kaytlin Ezzy attributes this trend to ongoing affordability pressures, which are driving buyers towards more cost-effective housing options outside major metropolitan areas.

“With demand concentrated at the lower end of the market, it’s unsurprising to see price growth shift from capital cities to regional areas as budget-conscious buyers seek more affordable alternatives,” Ezzy explains.

Within regional markets, the strongest growth is occurring in the most affordable quartile, where values surged 9.4% in 2024, reflecting heightened demand for entry-level properties.

Ezzy notes that the sustained demand for regional housing underscores the lasting impact of remote and hybrid work models.

“With more individuals prioritising lifestyle over proximity to workplaces, migration to regional areas remains above pre-Covid levels, continuing to support property demand.”