Thinking of investing in the Regional Victoria property market in 2026?

With a mix of lifestyle appeal, relative affordability, and solid rental demand, regional Victoria continues to attract attention from investors across the country. From fast-growing regional centres to established commuter hubs, the opportunities are diverse — but knowing where to focus your search is key.

Let's take a closer look at how the market tracked in 2025, what experts are forecasting for 2026, and which suburbs are showing the most promise for property investors.

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

The Regional Victoria property market entered a distinct recovery phase in 2025, recording annual growth of +4.5 per cent in the 12 months to October 2025. While this rebound was more moderate than the national average of +6.1 per cent, it signalled a clear turnaround from the price corrections of the previous year. By October, the median dwelling value had stabilised at approximately $600,000, supported by improved buyer sentiment.

Interestingly, the unit market outperformed the detached housing sector, driven by affordability constraints and investor interest in higher-yielding assets. Unit values rose by +5.4 per cent over the year to reach a median of $440,000, while house values recorded a steady increase of +4.4 per cent, taking the median price to $630,000.

Sales activity strengthened significantly as the year progressed, with NAB Economics reporting a sharp tightening in supply as house listings fell by 8.0 per cent and unit listings dropped by 16.6 per cent annually. This scarcity of stock created a competitive environment for buyers in key hubs like Bendigo, Ballarat, and Geelong, helping to put a floor under prices.

The rental market remained a pillar of consistency for investors, with gross rental yields sitting at 4.3 per cent for all dwellings. Tim Lawless, Head of Research at Cotality, highlighted that growth was skewed toward the more affordable end of the market, stating, "In regional Victoria, the upper quartile is virtually flat, only at 0.1 per cent." This dynamic suggests buyers were increasingly price-sensitive, favouring entry-level homes and units over premium lifestyle properties.

Regional Victoria property market predictions and price forecasts 2026

While national property values are projected to reach new record highs in 2026, Regional Victoria is expected to follow a more moderate, steady path. Major analysts like Westpac and NAB forecast growth of around 3 to 4 per cent, suggesting the market will likely trail Melbourne’s recovery by six to 12 months. This "lagged recovery" is typical of the cycle, as rising capital city prices eventually push buyers outward in search of better affordability.

Underpinning this stability is a tightening supply of homes. NAB reports that listing volumes have dropped by roughly 8 per cent year-on-year, which is helping to put a floor under prices even as the frenetic "tree change" activity of the pandemic era cools. Geelong is tipped as a key beneficiary of this trend, with analysts viewing it as a "sleeping giant" that will pick up momentum as Melbourne strengthens, supported by major infrastructure projects like the Fast Rail.

For investors, the landscape is shifting. Changes to state land tax have dampened sentiment in premium holiday markets like the Surf Coast, but high-yielding regional centres remain attractive. Bendigo and Mildura are standing out for their tight vacancy rates and rental returns that often exceed capital city averages.

According to NAB Group Economics, “Regional Victoria continues to benefit from population shifts out of Melbourne... This steady inflow has helped support property values, particularly in areas like Greater Geelong and Moorabool.”

Ultimately, most Regional Victoria property market predictions point to a year of disciplined, fundamentals-based appreciation. The wild gains of the past have been replaced by a sustainable rhythm, offering opportunities for investors targeting "A-grade" assets in major economic hubs.

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

We've put together a list of ten of Regional Victoria'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. 

Horsham, VIC 3400

Horsham offers an accessible entry point into the Wimmera region with a median unit price of $405,000. It has recorded solid annual growth of +14.1 per cent, supported by a rental yield of 5.2 per cent. As the major commercial centre for western Victoria, it attracts a steady stream of workers and residents. The five-year growth of +67.4 per cent highlights its consistent performance. With a median rent of $320, it remains a practical option for budget-conscious investors.

Shepparton, VIC 3630

Shepparton’s unit market is performing well, with a median price of $405,000 and annual growth of +13.3 per cent. It offers a strong rental yield of 5.3 per cent, driven by the town’s role as the commercial heart of the Goulburn Valley. The area is known for its agriculture and food processing industries, ensuring a reliable tenant base. Over five years, values have risen +66.7 per cent, reflecting long-term demand. The median weekly rent of $360 makes it an attractive cash-flow option.

Churchill, VIC 3842

Churchill is a standout performer in the Latrobe Valley with a median house price of $405,000. It has surged +15.7 per cent in the last 12 months and an impressive +85.8 per cent over five years. Home to a Federation University campus, the suburb sees consistent demand from students and academic staff. Investors benefit from a high rental yield of 5.6 per cent and a median rent of $400 per week. Its affordability and infrastructure make it a key target for regional investors.

Red Cliffs, VIC 3496

Red Cliffs offers a relaxed lifestyle in the Sunraysia region with a median house price of $427,500. The market has grown +17.9 per cent over the past year, driven by buyers seeking value near Mildura. It has delivered +80.2 per cent growth over five years, proving its resilience and appeal. With a rental yield of 4.9 per cent and median rent of $400, it balances capital gains with steady income. The town’s strong community feel and local markets add to its charm.

Mooroopna, VIC 3629

Mooroopna provides a value-driven alternative to neighbouring Shepparton with a median house price of $457,500. It has recorded +14.4 per cent growth in the last year and a massive +90.6 per cent over five years. The suburb is popular with families for its larger blocks and access to the Goulburn River parklands. Properties spend a median of 71 days on the market, suggesting a steady pace of sales. Its close connection to major regional employment hubs underpins its long-term potential.

Kyabram, VIC 3620

Kyabram is a thriving country town in the Goulburn Valley with a median house price of $490,000. It achieved +12.0 per cent growth over the last 12 months, supported by a strong local agricultural economy. The suburb features a dedicated fauna park and vibrant main street, appealing to families and retirees. Investors can expect a rental yield of 4.6 per cent with a median weekly rent of $430. Its five-year growth of +80.8 per cent demonstrates sustained buyer interest.

White Hills, VIC 3550

White Hills is a popular suburb in Greater Bendigo with a median house price of $598,000. It has seen +13.9 per cent annual growth, benefiting from its proximity to the Bendigo CBD and the beautiful local Botanic Gardens. The market has risen +81.2 per cent over five years, reflecting the broader strength of the Bendigo region. With a median rent of $475 and a yield of 4.8 per cent, it attracts quality tenants. It offers a balance of city convenience and leafy residential appeal.

Hamilton, VIC 3300

Hamilton serves as a major service hub for the Western District, offering a median house price of $410,000. The market grew +10.8 per cent in the past year, while five-year growth stands at +84.3 per cent. Known for its historic architecture and excellent schools, it draws families and professionals to the area. The rental yield of 5.0 per cent and median rent of $380 make it a solid performer for income-focused investors. Its stable economy is anchored by agriculture and health services.

Wodonga, VIC 3690

Wodonga’s unit market offers affordability on the Murray River border with a median price of $380,000. While annual growth was steady at +4.1 per cent, the suburb delivers a strong rental yield of 5.3 per cent. It is a key logistics and manufacturing hub, ensuring consistent tenant demand with a median rent of $370. Over five years, values have climbed +67.8 per cent, highlighting its long-term reliability. The twin-city relationship with Albury provides residents with extensive amenities and employment options.

Morwell, VIC 3840

Morwell remains one of Victoria’s most affordable markets with a median house price of $357,500. It offers a high rental yield of 5.8 per cent, making it a target for investors seeking positive cash flow. The suburb has seen +5.1 per cent growth in the last year and +78.8 per cent over five years as buyers recognise its value. Located in the heart of the Latrobe Valley, it is close to major power and paper industries. The median weekly rent of $380 ensures strong returns relative to the entry price.

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.