Key takeaways

• Regional VIC values: The regional Victorian median dwelling value reached $639,857 in July 2026, up +6.3 per cent over the year, though the quarterly trend has softened.
• No region-wide forecast: Forecasters do not publish a single Regional VIC price prediction. Sub-region views are mixed: stabilisation expected in Ballarat, undersupply support likely in Bendigo, and early-cycle recovery signalled in Geelong.
• Strongest picks: High-yield units in Mildura and Numurkah, fast-moving house markets in Moe and California Gully, and tightening supply conditions across most picks drove the selections.
• Investor steer: Vacancy rates below 1.8 per cent across the major centres support the rental case, but rising listings in several suburbs deserve close attention before committing.

Why invest in Regional Victoria now?

Cotality's Home Value Index put the regional Victorian median dwelling value at $639,857 in July 2026, up +6.3 per cent over the year. The quarterly picture is softer: values edged -0.4 per cent in the three months to July, a sign that momentum has cooled as national headwinds build.

The main demand driver is Melbourne migration into commutable centres. CommBank's Regional Movers Index ranked Greater Geelong as Australia's top regional migration destination, backed by the committed Geelong Fast Rail project and a Victorian government target of 128,600 additional dwellings in the region by 2051. Supply is constrained across the major centres: PRD's research flagged that Ballarat's roughly $539.1 million 2026 project pipeline falls short of recent sales volumes, pointing to likely undersupply.

Rental conditions support the investment case in most centres. PRD reported Bendigo's vacancy at 1.8 per cent in December 2025, and PRD put Ballarat's vacancy at just 0.8 per cent in December 2025, both well below the REIA's 3.0 per cent benchmark. Cotality put the region-wide gross yield at 4.2 per cent as at July 2026.

Sentiment is strongest at the affordable end. Terry Ryder of Hotspotting said the LaTrobe Valley, Baw Baw, Bendigo, Geelong, Ballarat, Shepparton and Mitchell LGAs "all have outstanding numbers in terms of sales volumes." That level of transaction activity typically precedes price growth, though views on timing and pace differ across the major centres.

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Regional Victoria property market predictions and price forecasts 2026

There is no credible forecast for Regional VIC as a whole in 2026. The market covers too many distinct towns and micro-markets for any forecaster to publish a reliable region-wide number, and none do.

What the research does support is directional commentary at the sub-region level, and that picture is mixed. InvestorKit's June 2026 analysis expects Ballarat to stabilise rather than grow, with high inventory and long days on market limiting upside, though rent and yield gains are forecast to continue. PRD's Ballarat andBendigo analyses argue a thin construction pipeline relative to recent sales volumes points to undersupply supporting prices in the near term. For Geelong, Loan Market notes the city typically lags Melbourne's cycle by six to twelve months, with broker commentary pointing to an early-cycle recovery. These are town-level views, not Regional VIC property market predictions for the broader region.

For broader context only: NAB's Residential Property Survey, Q2 2026 forecast Victoria-wide prices (including Melbourne) at -4.5 per cent over the next 12 months, with rents up +5 per cent. Those are state-wide figures and say nothing specific about regional towns.

For an investor, the absence of a credible region-wide forecast is itself useful. Watch the broader Victorian cycle, weigh each town's local fundamentals, and treat the sub-region commentary above as the most granular forward signal the research supports.

How we chose the best suburbs in Regional VIC

OpenAgent's data team scores suburbs using a growth-led model, where 12-month and five-year price growth carry the most weight, with days on market, listing volumes and rental yield each contributing a smaller amount.

The rankings use sales and rental data for the 12 months to 30 June 2026. Growth figures compare that period with the previous 12 months and the equivalent period five years earlier. Each suburb is ranked on its stronger property type, house or unit.

Gross rental yield is an estimate based on all properties in a suburb, not only those being rented out. Suburbs with fewer than around 30 sales are excluded, and individual datapoints are omitted where the underlying data is too limited to be reliable.

General information only, not financial advice. Figures are estimates and past performance is not a reliable indicator of future results. Always seek independent advice.

Regional VIC's best suburbs to invest in 2026

Ten suburbs across Regional Victoria screened for a combination of price growth, rental yield and market depth, covering both houses and units. Each suburb is profiled individually after the comparison table.

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1. Mildura 3500

Mildura is the commercial hub of the Mallee region, about 550 kilometres northwest of Melbourne on the Murray River. The lifestyle draws retirees, agricultural workers and a steady stream of sea-changers, and the unit market here has quietly delivered some of the strongest numbers on this list.

Units rose +24.4 per cent over the past year to a median of $420,000, and the gross yield of 5.2 per cent is the highest of the three unit picks. Five-year growth of +84.6 per cent is the strongest of the ten picks. Homes are selling in 34 days, down from 37 a year ago, and listings have been broadly stable.

• Strengths: Exceptional long-run price growth combined with a market-leading rental yield, in a regional hub with genuine economic depth.
• Risks and considerations: Distance from Melbourne limits the buyer pool at resale, and thin unit supply means transaction volumes can be lumpy.
• Best suited for: Yield-focused investors comfortable with a remote regional location and a long hold.

2. Moe 3825

Moe sits in the Latrobe Valley, about 130 kilometres east of Melbourne, and has historically been one of the most affordable house markets in the region. House prices rose +26.7 per cent to a median of $470,000, the strongest of the ten picks, and homes are selling in 42 days on average, down from 73 a year ago.

The gross yield is 5.1 per cent, and the median rent sits at $425 per week, the lowest median rent of the seven house picks. Listings rose +21.7 per cent over the past year, so buyers have more choice, though prices have moved strongly regardless.

• Strengths: Exceptional recent price growth combined with a solid yield and a very accessible entry point.
• Risks and considerations: The local economy is concentrated in a way that carries longer-term employment risk.
• Best suited for: Growth-focused investors seeking an affordable entry in a market that is moving quickly.

3. California Gully 3556

California Gully is a quiet residential suburb on the western edge of Bendigo, close to schools, parkland and the full amenity of a major regional city, without the city price tag. Families and owner-occupiers are drawn here, and that keeps demand steady.

Prices rose +25.8 per cent over the past year to a median of $585,000, and homes are selling in 25 days, down from 38 a year ago. Listings fell about -33.8 per cent over the past year, tightening competition for available stock, while the gross yield of 4.3 per cent is the lowest of the seven house picks.

• Strengths: Strong recent price growth and a fast selling pace, in a family-friendly pocket of one of regional Victoria's most established cities.
• Risks and considerations: A thin rental yield means the investment leans heavily on continued price growth to perform.
• Best suited for: Growth-focused investors who want Bendigo exposure at a lower price point than the city median.

4. Churchill 3842

Churchill is a university town in the Latrobe Valley, built around Federation University's Gippsland campus and surrounded by bushland about 160 kilometres east of Melbourne. The student and staff population provides a reliable rental base, and five-year growth of +77.1 per cent is the strongest of the seven house picks.

The median has risen +20.8 per cent over the past year to $465,000, and homes are taking 66 days to sell, down from 84 a year ago. Listings fell about -35.5 per cent over the past year, tightening available supply, and the gross yield sits at 4.9 per cent.

• Strengths: A captive rental market tied to the university, backed by an exceptional long-run growth record at an accessible price.
• Risks and considerations: Days on market are long relative to most picks, and demand is closely tied to the university's enrolment and employment base.
• Best suited for: Long-hold investors who want structural rental demand and a strong growth record without a demanding entry price.

5. Horsham 3400

Horsham is the service centre for the Wimmera region, roughly 300 kilometres northwest of Melbourne. It is a self-contained agricultural town with hospitals, schools, retail and a stable local economy that doesn't depend on Melbourne commuters.

Prices rose +26 per cent over the past year to a median of $485,000, and homes are selling in 25 days on average, down from 41 a year ago. Listings grew +26.6 per cent over the past year, the largest of the ten picks, giving buyers real choice and negotiating room. The gross yield is 4.8 per cent, and five-year growth of +53 per cent is the weakest of the ten picks.

• Strengths: Strong recent price growth and fast selling pace in a genuinely self-sufficient regional centre.
• Risks and considerations: A modest five-year growth record, and distance from Melbourne narrows the future buyer pool.
• Best suited for: Investors focused on near-term momentum and cashflow rather than long-run capital appreciation.

6. Morwell 3840

Morwell is the commercial heart of the Latrobe Valley, neighbour to Moe and Traralgon, and the most affordable entry point on this entire list. The town has a mix of long-term residents and renters, with demand supported by the valley's employment base.

At $332,500, its median is the lowest of the ten picks, and prices rose +25 per cent over the past year, the strongest of the three unit picks. Units are taking 70 days to sell, down from 91 a year ago, and the gross yield is 4.8 per cent.

• Strengths: Exceptional recent price growth, a solid yield, and an improving selling pace.
• Risks and considerations: Long days on market even after improvement, and a small unit pool means thin transaction volumes.
• Best suited for: Entry-level investors prioritising access to the market over yield or selling pace.

7. Wodonga 3690

Wodonga sits on the New South Wales border, paired with Albury across the Murray River, and together they form one of regional Australia's larger inland centres. The twin-city dynamic brings a bigger employment base, better amenity and a more liquid market than most regional picks.

The median unit price rose +18.2 per cent over the past year to $455,000, the highest entry price of the three unit picks. Five-year growth is +79.1 per cent, and units are selling in 39 days, down from 48 a year ago. Listings fell about -13.3 per cent over the past year, and the gross yield sits at 4.2 per cent.

• Strengths: A large, well-serviced regional centre with strong five-year capital growth and an improving selling pace.
• Risks and considerations: A demanding entry price for a regional unit, and recent growth has softened compared with the prior run.
• Best suited for: Growth-focused investors who want a larger, more liquid regional market and are comfortable with a higher buy-in.

8. Numurkah 3636

Numurkah is a small agricultural town in the Goulburn Valley, roughly 220 kilometres north of Melbourne near Shepparton. It is quiet, affordable and well-regarded by the farming community it serves, with housing that is solidly built and understated.

The gross yield of 5.8 per cent is the highest of the ten picks, and homes here rent for $480 per week. Prices rose +17.4 per cent over the past year to a median of $463,000. Homes are taking 77 days to sell, the longest of the ten picks, down from 104 a year ago, and listings rose about +10.5 per cent over the past year.

• Strengths: The best gross yield on the entire list, with a meaningful improvement in selling pace over the past year.
• Risks and considerations: A slow market where the buyer pool is limited and resale requires patience.
• Best suited for: Yield-focused investors who prioritise rental income and can accept a patient exit when the time comes.

9. Baranduda 3691

Baranduda is a newer residential suburb on Wodonga's southern fringe, popular with families wanting space, newer housing stock and easy access to Albury-Wodonga's shared amenity. The median price rose +17.3 per cent over the past year to $749,000, the highest entry price of the ten picks, and the median rent of $630 per week is the highest median rent of the ten picks.

Homes are selling in 39 days, well under the 52 days recorded a year ago, and listings fell about -30 per cent over the past year, tightening available stock. The gross yield of 4.8 per cent reflects both the strong rent and the premium entry price investors have to carry.

• Strengths: Strong rental income in a well-presented family suburb with tightening supply and noticeably faster selling times.
• Risks and considerations: A demanding entry price that narrows the buyer pool and raises the cost of holding if growth stalls.
• Best suited for: Investors targeting rental income in a premium regional suburb, with the capital to meet a high entry price.

10. Red Cliffs 3496

Red Cliffs is a small horticultural town about 15 kilometres south of Mildura, sitting among vineyards and citrus orchards along the Murray. It has a distinct character from its larger neighbour, quieter and more tightly knit, and its property market has been gaining attention as Mildura's prices have risen.

Prices rose +18.1 per cent over the past year to a median of $508,000. Homes are selling in 35 days, very close to the 37-day pace a year ago, suggesting a stable rather than accelerating market. Listings fell about -15 per cent over the past year. The gross yield is 4.7 per cent and five-year growth is +65.5 per cent.

• Strengths: A settled, affordable market with solid long-run growth and a tightening supply picture benefiting from Mildura's rising profile.
• Risks and considerations: A small town with limited economic diversity, where selling pace has barely shifted and the buyer pool is narrow.
• Best suited for: Patient investors seeking Mildura-region exposure at a more accessible price point.

The bottom line

Regional Victoria's investment case in 2026 rests on local fundamentals, not a region-wide forecast, because no credible one exists. Annual values are up +6.3 per cent, but the quarterly trend is softer, and conditions vary sharply by centre.

The suburbs that screened well share tight supply, improving days on market and yields that sit above the regional average. Investors should weigh each centre's individual risk profile, particularly listing trends and market depth, before committing.

Speak to a top local agent to get a grounded read on the centre you are considering.