Key regional towns across Australia are set to outperform the wider market in the years ahead amid an ongoing shift in buyer behaviour.
About a third of the 100 suburbs nominated by property experts in the latest realestate.com.au Hot 100 were found in regional Australia.
The suburbs that made the list were selected for their strong growth prospects in 2026 by a panel of industry experts including heads of national real estate agencies, buyer’s agents and researchers.
People are increasingly relocating from the cities to the regions in search of affordable homes and job opportunities, with capital city residents moving to the regions outnumbering people moving in the opposite direction by 31%, according to the latest Regional Movers Index.
It’s a trend firmly established since the pandemic, when huge numbers of city-dwellers woke up to the lifestyle benefits on offer outside the capitals, triggering a regional real estate boom.
The regions are also on the radar for investors, with affordability, high rental yields and strong growth prospects proving attractive.
Hot 100's regional suburbs
| Suburb | State | Region (SA4) | Median house price | Median unit price |
| Bathurst | NSW | Central West | $660,000 | $458,000 |
| Boambee East | NSW | Coffs Harbour - Grafton | $793,000 | $590,000 |
| Broadmeadow | NSW | Newcastle and Lake Macquarie | $983,000 | $750,000 |
| Calderwood | NSW | Illawarra | $990,000 | NA |
| Charlestown | NSW | Newcastle and Lake Macquarie | $985,000 | $690,000 |
| Dubbo | NSW | Far West and Orana | $615,000 | $351,000 |
| Tamworth | NSW | New England and North West | $680,000 | $339,000 |
| Baringa | QLD | Sunshine Coast | $850,000 | NA |
| Bundaberg | QLD | Wide Bay | $543,000 | $450,000 |
| Cairns | QLD | Cairns | NA | $673,000 |
| Highfields | QLD | Toowoomba | $975,000 | NA |
| Mackay | QLD | Mackay - Isaac - Whitsunday | $558,000 | $368,000 |
| Townsville | QLD | Townsville | NA | $455,000 |
| Upper Coomera | QLD | Gold Coast | $1,021,000 | $752,000 |
| Acton | TAS | West and North West | $411,000 | NA |
| Invermay | TAS | Launceston and North East | $470,000 | NA |
| Legana | TAS | Launceston and North East | $698,000 | $558,000 |
| Murray Bridge | SA | Murray and Mallee | $545,000 | $403,000 |
| Renmark | SA | Murray and Mallee | $436,000 | NA |
| Ararat | VIC | Warrnambool and South West | $390,000 | $270,000 |
| Carisbrook | VIC | North West | $495,000 | NA |
| Grovedale | VIC | Geelong | $682,000 | $508,000 |
| Herne Hill | VIC | Geelong | $755,000 | $340,000 |
| Huntly | VIC | Bendigo | $599,000 | NA |
| Kennington | VIC | Bendigo | $603,000 | $500,000 |
| Mildura | VIC | North West | $520,000 | $344,000 |
| Winter Valley | VIC | Ballarat | $570,000 | NA |
| Albany | WA | Western Australia – Wheatbelt | $903,000 | NA |
| South Bunbury | WA | Bunbury | $700,000 | $525,000 |
As a result, regional Australia has outperformed the wider property market recently, with the latest PropTrack Home Price Index showing prices in regional areas rose by 11% compared with 8.8% in the capitals.
But according to the experts, not all regional property markets stack up equally for their investment prospects, and the towns and cities where prices are most likely to outperform in the year ahead have several factors in common.
Affordability and accessibilty
Many of the regional towns selected offer much lower entry prices than in their respective capital while still benefiting from proximity and transport links to the capitals, especially in Victoria.
Seven of the eight regional Victorian suburbs selected in the Hot 100 were located within about two hours of Melbourne, concentrated mostly in the regional cities of Geelong, Ballarat and Bendigo.
Bendigo is among several regional Victorian cities tipped for further price growth. Picture: Getty
While access to the capital plays a key role, it’s only part of the story. Compared to Melbourne, typical house prices are about 21% lower in Geelong, 35% lower in Bendigo and 40% lower in Ballarat.
Standout suburbs noted by the experts include Herne Hill in Geelong, Winter Valley in Ballarat and Kennington in Bendigo.
Thriving economies
Mildura remains the outlier among the Victorian towns tipped for growth in that it’s located closer to Adelaide than Melbourne, but its diversified economy and role as a key agricultural centre remain major drawcards for both homebuyers and investors.
It was a similar story in New South Wales, where the inland centres of Dubbo, Tamworth and Bathurst were nominated for their strong local economies.
House prices in the Tamworth LGA have climbed by about 16% in the past year. Picture: realestate.com.au/buy
These are among the largest inland cities in NSW, and as such have a more diverse range of economic drivers than smaller one-industry towns.
Jobs in health, education, government services, manufacturing, construction and agriculture provide a stable, diversified employment base that appeals to city movers and supports steady investor demand.
Market momentum
The experts’ top picks in Queensland included the major coastal cities of Townsville, Mackay, Cairns and Bundaberg.
These cities have benefited from strong population growth and investment in infrastructure, defence and resources, but are large enough to be insulated from cyclicality associated with smaller towns more focused on resources or agriculture.
Townsville topped the charts for price growth last year, and experts expect that trend to continue. Picture: Getty
Despite significant increases in home prices in recent years, properties in these cities remain much more affordable than in southeast Queensland, and strong growth is expected to continue.
Tight supply of homes relative to demand has caused prices to rise between 12% and 15% in the past year, but median house prices remain in the $650,000 to $750,000 range – within reach of both first-home buyers and investors.
Emerging opportunities
The experts also highlighted overlooked and lesser-known property markets as ones to watch in the year ahead.
These ranged from suburbs of Launceston in Tasmania, which has quietly emerged as one of Australia’s top-performing regional cities for price growth, to Murray Bridge, an agriculture and manufacturing hub in South Australia.
Launceston's housing market has picked up recently, with prices up more than 5% in the past three months and 17% in the past year.
While affordable price points and diverse local economies have attracted interstate investment, strong owner-occupier demand has made these markets well-positioned to weather the ups and downs of the property cycle.
Hot 100 for 2026
The Hot 100 is a list compiled by a panel of property experts, including heads of national real estate agencies, buyer’s agents, investors and others, as having the best growth prospects in 2026.
Suburbs are selected based on several growth drivers, including investment prospects, that should not only support home values in the year ahead but see prices outperform against the broader market.
Suburbs are nominated based on the following growth drivers:
- Affordability, either low prices suiting buyers on a budget or relative affordability compared to nearby suburbs.
- Amenity, being the level of lifestyle pluses, from bars and restaurants to boutiques and parklands.
- Family appeal, such as dwelling type, perceived safety and proximity to good schools.
- Location, including proximity to the CBD or major hubs, or closeness to natural amenity like beaches.
- Investment prospects, from rental market conditions to expected imminent upside.
- Gentrification, being the changing face of a suburb.
- Population growth, representing a projected increase in the number of locals.
- Demographic change, indicating a shift from the current make-up of residents, for example young families replacing downsizing elderly locals.
- Infrastructure, looking at major investments in projects that will benefit the suburb or surrounds.
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