iscover
Following a recent trend of migration away from capital cities, regional towns are poised for another year of strong growth, according to John McGrath.
While dwelling values in Australia’s capital cities have been tipped to continue on their growth trajectory in 2026, regional towns are set to benefit from city-siders looking for a tree change.
McGrath Estate Agents CEO John McGrath said that while the capital city markets were set to continue to grow in 2026, the regions were also set for a strong year.
“I’ve closely observed Australia’s regional property markets for years, and it looks like 2026 will bring some more big changes to these areas,” McGrath said.
McGrath said the strength of the regional markets was driven by high levels of migration from the capital cities, accounting for 11.5 per cent of total relocations in the September quarter, according to the Regional Movers Index.
“The move from onsite to work from home and hybrid employment is strengthening the appeal of regional and rural locations,” he said.
“So too is the appeal of a quieter, more relaxed lifestyle.”
According to Cotality data, regional property values climbed by 3.2 per cent over the three months to January, compared to 2.1 per cent in the capital cities.
Additionally, rents in regional centres have grown faster than in capital cities, rising by 1.6 per cent over the quarter and 42 per cent over the past five years.
Data showed that Western Australia was the strongest region, with an uplift of 6.1 per cent over the quarter.
Kalgoorlie was the region’s best market, with values up 7.6 per cent in the last quarter to a median price of $429,575.
The township of Wagga Wagga was the highest performing individual property market in the country, with dwelling values climbing by 8.1 per cent in the quarter and 14.9 per cent over the year.
The area’s strong growth led to property values rising to a median of $665,026.
McGrath said he expected regional markets to continue performing strongly despite economic pressures.
“Based on the last few years, or even the last quarter, I suspect inland towns, such as Wagga, will continue to outperform capital cities.”
“And, as vacancies remain tight for regional renters, rents are likely to rise faster too.”
McGrath said some states would follow the lead of their booming capital cities, with regional Queensland and Western Australia following the lead of Brisbane and Perth.
“Equally, I wouldn’t be surprised if property markets in Western Australian and Queensland rural centres further exceed expectations,” McGrath concluded.
