Australia’s smaller capital cities and regional areas are continuing to outperform major urban centres, with double-digit dwelling price growth recorded across many markets in the 12 months to April 2025, according to the latest CoreLogic data.

These results highlight important considerations for residential mortgage lenders, particularly in assessing borrower demand and regional loan portfolio exposure.

Leading the national growth chart is the Midwest region of Western Australia, which posted a 25.4% rise in dwelling values.

Notably, eight of the top ten performing regional areas are located in Queensland, reinforcing the state’s appeal for both owner-occupiers and lifestyle-driven relocators.

Townsville was the top regional Queensland performer, with dwelling prices increasing by 23.5%, followed by Gladstone at 22.2% and the Central Highlands at 21.8%.

Despite some moderation in growth across Perth, the city still features prominently, with seven suburbs among the top ten capital city areas for price growth.

Swan recorded the highest annual increase in Perth at 16.8%, followed by Mundaring at 15.7%.

Adelaide’s outer areas also showed strong momentum, with Playford and Mitcham each posting 13% growth, while the Beenleigh region in Greater Brisbane registered a rise of 13.8%.

According to CoreLogic Research Director Tim Lawless, regional markets are continuing to benefit from internal migration trends and greater workplace flexibility.

The persistence of hybrid working models, coupled with the relative affordability of these areas, is contributing to renewed population inflows and stronger buyer demand.