Regional real estate to win in 2026

The index assigned each region a ranking based on its predicted price growth for the year and placed it in one of three categories: winners, steady, or losers.

The new year predictions found that while none of the regional centres were anticipated to be “losers”, only a third of them will remain “steady” performers, while the remainder will be “winners”.

Hotspotting founder Terry Ryder said the market was in a unique position heading into 2026.

“I see the current situation as highly unusual, with strong buyer demand in all eight capital cities and six regional market jurisdictions assessed – therefore, there are no apparent major market losers as we head into 2026.”

“We have seldom seen such a universal strength in markets nationwide, with no withering major markets anywhere in Australia – not even during that short COVID-19 boom was sales activity so universally strong.”

Hotspotting director Tim Graham said the combination of population growth and heightened demand driven by lower interest rates and the introduction of government schemes had pushed the regional property market higher.

“The search for affordability is increasingly a driver of buyer demand, placing greater focus on cheaper house markets and on unit markets in locations where houses are very expensive,” Graham said.

“For example, the strongest market sectors in both Melbourne and Brisbane are outer-ring housing markets and near-city unit markets.”

NSW

Graham said that the NSW market was rising, with sales reaching their highest level since 2021.

“The market has gone to another level in the latest quarter, with a further 10 per cent rise in sales volumes – 18 per cent higher than six months ago,” Graham said.

“Now 65 per cent of markets have positive rankings and only 16 per cent have negative ones, down from 33 per cent in the Spring report.”

Additionally, Graham said the NSW boom was being primarily headlined by the Hunter region, namely Cessnock, Maitland, Singleton and Muswellbrook.

“The nearby City of Newcastle, the Lake Macquarie local government area (LGA) and the Port Stephens LGA also all have buoyant markets.”

Tasmania

Ryder said the data showed a significant uplift in the regional Tasmanian market, with a 13 per cent increase in sales volume in the last quarter, 23 per cent higher than the same time the previous year.

He said that markets with a positive ranking now make up 63 per cent of Tasmania’s total, up from 51 per cent three months ago.

“The upturn in the regional Tasmanian market is most evident in the major centres in the north of the state,” Ryder said.

He said that Launceston, Tassie’s second city, has been a highly consistent market, which saw a 22 per cent quarter-on-quarter increase in sales activity, led by rising markets in Invermay, Newnham and South Launceston.

Queensland

While the regional Queensland market appeared to be slowing, Graham said that the boom will not end just yet.

“While some regional centres, notably in Central Queensland, are now below their peaks, overall the trend of gradual decline has been short-lived,” Graham said.

Data showed that the latest quarter recorded a revival in total sales numbers in Regional Queensland, up 12 per cent on the same time a year ago and up 20 per cent on the previous quarter.

“This is most evident in the Gold Coast market, which is again the standout location in regional Queensland.”

Victoria

Regional Victoria had been rising quietly since 2024, but Graham said it had gone to another level in the latest quarter.

“Some 62 per cent of Regional Victorian markets have positive classifications, which is up from 58 per cent three months ago,” he said.

Selecting a top five among the regional Victoria LGAs is increasingly difficult because there are many worthy candidates with rising sales activity, as well as highly consistent markets.

“However, the LaTrobe Valley, Baw Baw, Bendigo, Geelong, Ballarat, Shepparton and Mitchell LGAs all have outstanding numbers in terms of sales volumes.”

South Australia

Ryder said South Australia was rarely mentioned in discussions as an investment opportunity, despite significant price growth over the past five years.

“But this latest quarter shows further signs of some of its markets moderating,” he said.

“In this latest quarter, markets with positive rankings have dropped from 64 per cent six months ago and 58 per cent three months ago to 50 per cent.”

“Overall sales numbers across regional South Australia have remained high because most of the biggest markets continue to be rising or consistent.”

Ryder said that the LGAs of Mount Gambier and Murray Bridge appeared to be the hot ticket locations in SA.

Western Australia

Ryder said that although the market in regional Western Australia improved slightly in 2025, with sales increasing by 8 per cent, the state would be the lowest performer of 2026.

“Of the 127 markets in our regional Western Australia analysis, 43 per cent have positive ratings while 40 per cent have negative ones – which is the weakest result among the 14 major jurisdictions, but not a disastrous one.”

“It’s clear from our analysis of sales volumes that some of the key regional cities, heavily targeted by investors over the past three years, are no longer booming,” Ryder concluded.