Looking for the best place to buy investment property in Regional NSW?

Here, we round up the latest data and expert insights on how the Regional NSW property market has been tracking, as well as where it may be headed in 2026.

Let’s start with an overview of how the regional NSW property market performed in 2025.

What did the regional NSW property market look like in 2025?

The Regional NSW property market defied expectations of a downturn, recording steady growth of +5.2 per cent in the 12 months to October 2025. While this figure slightly trailed the national average of +6.1 per cent, the region proved resilient as buyers continued to look beyond Sydney for lifestyle and affordability. By October, the median dwelling value had reached approximately $790,000, supported by renewed confidence following interest rate cuts earlier in the year.

Houses drove the majority of this capital growth, rising by +5.4 per cent to reach a median value of $820,000. In comparison, the unit market saw more modest gains of +3.8 per cent, taking the median price to $650,000 as of October 2025. This divergence highlighted a sustained preference for detached land among buyers moving to coastal and country hubs like Newcastle and the North Coast.

Transaction activity surged throughout the year, with sales turnover increasing by 9.3 per cent annually as vendors became more active. New listings rose by approximately 5.6 per cent in the September quarter, providing much-needed stock that was quickly absorbed by entry-level buyers utilising the expanded First Home Guarantee.

Investors were drawn to the region's strong rental fundamentals, with gross rental yields sitting at 4.4 per cent for units and 4.1 per cent for houses. Craig Betalli, Mortgage Broker at Our Broker, noted that lower borrowing costs had boosted confidence, stating, "Regional markets offer a compelling answer with investors able to get more bang for their buck while tapping into strong rental demand and higher yields."

Regional NSW property market predictions and price forecasts 2026

National property values are projected to reach new record highs in 2026 as interest rate cuts reignite buyer demand, and Regional NSW is expected to benefit significantly from a renewed flight to affordability. With Sydney prices remaining high, major analysts like Westpac and CommBank anticipate that buyers will increasingly look to major regional hubs where value is still accessible. While specific forecasts for the entire state vary, predictions for key centres like Newcastle and Wollongong generally point to steady growth of between 3 and 7 per cent.

The Central Coast and Hunter Region are tipped to remain popular, particularly among first home buyers utilising government deposit schemes. Propertyology forecasts growth of 3 to 6 per cent for the Central Coast, driven by hybrid workers settling permanently in lifestyle corridors. However, affordability ceilings are becoming a factor in premium coastal suburbs. Bamboo Routes suggests a two-speed market may emerge in areas like Wollongong, where units could outperform detached houses as borrowing capacity constraints push investors toward lower price points.

For investors, the rental market remains a compelling driver. Vacancy rates in major regional centres are hovering near 1 per cent, which is supporting yields even as capital growth stabilises. Westpac highlights the resilience of the sector, noting that the contrast between regional NSW and Sydney is stark as turnover lifts in the regions while the capital faces tighter listing environments.

Ultimately, most Regional NSW property market predictions for 2026 suggest a year of solid performance. The market is expected to be driven by the middle and lower price brackets, as the ripple effect from Sydney motivates buyers to secure family homes and investments in more affordable locations.

What are the best NSW regional towns to invest in 2026?

We've put together a list of ten of Regional NSW's top investment suburbs for 2026 according to OpenAgent analysis of short-term and long-term growth patterns, listing activity, selling speed and rental yields. 

Tweed Heads South, NSW 2486

Tweed Heads South offers a strategic entry point into the high-demand Northern Rivers region with a median unit price of $767,500. It has recorded robust annual growth of +17.0 per cent, driven by its proximity to the Gold Coast airport and beaches. The suburb appeals to both retirees and workers, supporting a strong rental yield of 4.9 per cent and median rent of $615. With major retail hubs like Tweed City nearby, it combines convenience with coastal living. The five-year growth of +91.9 per cent highlights its long-term transition into a premium lifestyle market.

Anna Bay, NSW 2316

Anna Bay is a coastal standout in the Port Stephens region, commanding a median house price of $1,046,250. The market surged +20.3 per cent in the last year, fueled by demand for lifestyle properties near the famous Birubi Beach sand dunes. It has nearly doubled in value over five years with +90.7 per cent growth, reflecting its popularity with sea-changers and holiday investors. While the yield is 3.8 per cent, the median weekly rent of $650 indicates healthy tenant demand. Its relaxed village atmosphere makes it a prime target for those escaping the city grind.

Muswellbrook, NSW 2333

Muswellbrook offers exceptional affordability in the Upper Hunter with a median house price of $575,000. It has delivered +14.4 per cent growth over the past year and a massive +96.4 per cent over five years, driven by the region's strong mining and energy sectors. Investors are drawn to the rental yield of 5.2 per cent, supported by a consistent workforce population. The town serves as a major service centre with schools, shopping, and medical facilities. For those seeking cash flow and entry-level pricing, it remains a compelling option.

Lavington, NSW 2641

Lavington provides a high-yield opportunity in the Albury region with a median unit price of just $345,000. The suburb offers a rental yield of 5.7 per cent, making it highly attractive for investors seeking positive cash flow. While annual growth was steady at +7.8 per cent, the five-year trend shows values have nearly doubled (+92.7 per cent). It functions as a key commercial hub with its own shopping centres and easy access to the Hume Highway. The low entry price and high demand from renters keep vacancy risks low.

Bellbird, NSW 2325

Bellbird is a rapidly growing suburb in the Hunter Valley with a median house price of $750,000. It has achieved +11.5 per cent annual growth and an impressive +98.4 per cent over five years as buyers look beyond Cessnock for value. The area is popular with families and workers connected to the local tourism and mining industries. With a rental yield of 5.1 per cent and median rent of $560, it offers strong returns for investors. Its proximity to world-class vineyards and new housing estates adds to its lifestyle appeal.

Cumbalum, NSW 2478

Cumbalum has emerged as a premium precinct in the Ballina hinterland with a median house price of $1,150,000. The market grew by +17.3 per cent in the last 12 months, driven by demand for modern homes in master-planned estates. Its location offers quick access to the Pacific Highway and Ballina Byron Gateway Airport, making it ideal for commuters. Tenants pay a median of $840 per week, reflecting the quality of housing available. It offers a quieter, family-friendly alternative to the busy coastal strips while remaining close to the beach.

Queanbeyan, NSW 2620

Queanbeyan’s unit market is performing strongly, offering a median price of $532,500 and a high rental yield of 5.9 per cent. Prices rose +15.5 per cent over the last year as buyers sought value just across the border from Canberra. It serves as a key commuter hub for the ACT workforce, ensuring consistent rental demand with a median rent of $420. The town centre is undergoing revitalisation, adding to the amenity for residents. For investors, it provides the economic stability of the capital region at a much more accessible price point.

Pottsville, NSW 2489

Pottsville is a sought-after coastal village on the Tweed Coast with a median house price of $1,450,000. It recorded +13.5 per cent growth in the past year, continuing its trajectory as a high-end lifestyle destination. The suburb retains a relaxed community feel despite its +89.9 per cent growth over five years. With a median weekly rent of $890, it attracts families and professionals willing to pay for proximity to pristine beaches and estuaries. It remains a key target for investors focused on long-term capital gains in a supply-constrained market.

Banora Point, NSW 2486

Banora Point offers a balanced investment option in the Northern Rivers with a median unit price of $741,000. The market grew +10.6 per cent annually, supported by its elevated position and views over the Tweed River and ocean. It is a favourite among retirees and families, driving a solid rental yield of 4.5 per cent. The suburb features established clubs, schools, and shopping, providing excellent local infrastructure. Its connectivity to the M1 makes it convenient for those working in either Tweed Heads or the Gold Coast.

Nambucca Heads, NSW 2448

Nambucca Heads combines coastal beauty with affordability, recording a median house price of $730,000. The market has surged +16.8 per cent in the last 12 months as buyers recognise the value relative to Coffs Harbour and Port Macquarie. It offers a relaxed lifestyle centred around the Nambucca River estuary and beaches, appealing to sea-changers. Investors benefit from a 4.3 per cent yield and a median rent of $520 per week. The town’s growing profile is reflected in its strong five-year growth of +76.1 per cent.

Disclaimer: Rankings use OpenAgent’s internal weighted scoring of price growth, days on market, listings and indicative yield. General information only—not financial advice; figures are estimates; past performance is not reliable. Always seek independent advice.

Frequently asked question about best regional NSW areas for investment property