Fastest growing regional areas for property investment in 2026

Are you considering investing in a regional property market in 2026?

Regional Australia still offers value and opportunity for investors and homebuyers alike, though the pace has come off since last year. This guide breaks down how regional property markets performed across the country in the year to July 2026, and which areas delivered the strongest annual gains.

Let's dive into the big picture of how regional markets are shaping up and what is driving their performance.

How did regional markets perform in the year to July 2026?

Regional dwelling values eased by 0.1 per cent in the three months to July 2026, according to Cotality's Regional Market Update. That is a modest decline set against the 2.5 per cent fall recorded across the combined capitals over the same period, and regional markets have now outperformed the capital cities since late 2025, when housing conditions began to soften.

Momentum has clearly slowed, though. Of the 50 largest Significant Urban Areas, 47 recorded weaker growth in the three months to July than in the previous quarter, and 22 saw values contract outright. Relative affordability has continued to support demand in many regional markets, attracting internal migration from the major capitals as conditions in the cities have weakened.

The picture varies sharply by state. Regional South Australia and Western Australia saw the strongest conditions in the three months to July, each increasing by 2.1 per cent, with Port Pirie up 6.7 per cent and Kalgoorlie - Boulder up 6.4 per cent, while regional Queensland recorded no growth at all over the quarter. The weakest conditions were in regional NSW and Victoria, mirroring the steep declines in their capitals, although deeper inland markets such as Dubbo (up 3.9 per cent), Tamworth (2.2 per cent) and Albury - Wodonga (2.0 per cent) kept growing.

Rents have held up better than values. Regional rents rose 1.1 per cent over the quarter and 5.9 per cent over the year, matching the combined capitals on an annual basis, while the rental vacancy rate sat at 1.9 per cent against 1.7 per cent in the capitals. Gross rental yields were steady at 4.2 per cent, comfortably ahead of the 3.6 per cent on offer in the capital cities.

What are the fastest-growing regional towns in Australia?

Cotality's latest Regional Market Update recorded the following regional growth hotspots in the year to July 2026:

• Kalgoorlie - Boulder, WA: The national leader by a wide margin, with annual gains of +32.7 per cent and the shortest selling time in the country at 10 days.
• Karratha, WA: The Pilbara city followed with growth of +23.3 per cent over the year.
• Emerald, QLD: The strongest performer outside Western Australia, up +22.5 per cent.
• Albany, WA: Top of the national list a year ago, and still adding +22.1 per cent.
• Geraldton, WA: Rounded out the top five with an annual gain of +20.7 per cent.

Western Australia dominated the leaderboard, taking four of the top five places as its resources and coastal markets continued to run well ahead of the rest of the country.

Let's now dial down into specific regions state-by-state.

Top Regional NSW growth markets in 2026

Regional NSW recorded some of the weakest conditions in the country over the past quarter, but a handful of deeper inland markets carried on regardless. Every one of the state's five strongest annual performers sits well away from the coast, in the Riverina, the central west, the New England and on the Murray.

1. Wagga Wagga / Annual growth: +19.6% / Median value: $710,614

The largest inland city in New South Wales sits on the Murrumbidgee River, roughly midway between Sydney and Melbourne. Its economy spreads across agriculture, health, education and the army recruit training centre at Kapooka, which gives the market a steadier footing than most country towns. Wagga Wagga led the state for annual growth and homes still change hands quickly, at a median 33 days on market.

2. Dubbo / Annual growth: +19.5% / Median value: $675,156

Dubbo anchors the Orana region in the state's central west and serves a vast catchment as its health, transport and retail centre. Beyond the district it is best known for Taronga Western Plains Zoo. Buyers have been quick to act here: at a median 27 days on market it is among the fastest-selling markets in regional New South Wales, and the vendor discount of 1.9 per cent is the lowest in the state.

3. Armidale / Annual growth: +19.5% / Median value: $609,891

Set high on the New England tablelands, Armidale is a cathedral and university city with a cool climate and genuine autumn colour. The University of New England and a large schooling sector give it a resident population that turns over steadily, which shows up in the rental market: rents rose 7.6 per cent over the year. Sales volumes climbed 25.9 per cent as buyers looked further inland.

4. Tamworth / Annual growth: +12.5% / Median value: $622,555

The commercial hub of the New England and north-west, Tamworth sits on the Peel River and is known nationally for its country music festival and its equine industry. It carries the deepest services base in the region, from health to freight. Rental stock is comparatively easy to find by regional standards, with a vacancy rate of 3.1 per cent, among the highest in the state.

5. Albury - Wodonga / Annual growth: +12.1% / Median value: $688,935

Straddling the Murray on the New South Wales and Victorian border, Albury - Wodonga functions as one city with two councils and two state governments. Its position on the Hume Highway and the Sydney to Melbourne rail line makes it a natural freight and logistics centre, and the twin-city economy is unusually diverse for an inland market. Rents have been flat, up 0.9 per cent over the year.

Top Regional Victoria growth markets in 2026

Victoria's strongest regional markets in the year to July were all well outside the Melbourne commuter belt, in Gippsland, the Wimmera and the far south-west. Values across the state's regions slipped over the quarter alongside Melbourne, but these inland and coastal service centres held on to their annual gains.

1. Traralgon - Morwell / Annual growth: +16.5% / Median value: $543,432

The twin towns at the centre of the Latrobe Valley have long been Victoria's power generation heartland, and they remain among the most affordable substantial markets within easy reach of Melbourne. Buyer interest has surged rather than faded: sales volumes rose 42.4 per cent over the year, one of the sharpest increases anywhere in regional Australia.

2. Horsham / Annual growth: +14.7% / Median value: $455,681

Horsham is the service centre of the Wimmera, a broadacre cropping district in the state's west, and sits on the Wimmera River within reach of the Grampians. It offers one of the lowest entry points of any sizeable market in Victoria. Investors get the arithmetic that comes with that: a gross rental yield of 5.1 per cent and a vacancy rate of just 0.4 per cent.

3. Portland / Annual growth: +13.9% / Median value: $484,517

Portland sits on Victoria's far south-west coast, built around a deep-water port that ships grain, timber and aluminium, and it is the starting point of the Great South West Walk. It is a working harbour town rather than a holiday one, which keeps prices grounded. Rents rose 8.1 per cent over the year and the gross rental yield of 5.5 per cent is among the strongest in regional Victoria.

4. Sale / Annual growth: +12.9% / Median value: $502,143

Sale sits in central Gippsland, close to the Gippsland Lakes and the Ninety Mile Beach. RAAF Base East Sale and the servicing of Bass Strait oil and gas give the town an employment base that most places its size do not have. Sales activity has jumped sharply, up 63.0 per cent on the previous year, the largest increase of any regional market in the country.

5. Bairnsdale / Annual growth: +12.2% / Median value: $560,625

The main town of East Gippsland, Bairnsdale is the gateway to the Gippsland Lakes and sits on the Mitchell River, serving a large farming and forestry catchment that stretches to the New South Wales border. Homes take longer to sell here than in most of the state, at a median 56 days, but the market has drawn a wave of new buyers, with sales volumes up 32.8 per cent.

Top Regional Queensland growth markets in 2026

Regional Queensland recorded no growth at all over the three months to July, with falls on the Gold Coast, in Cairns and on the Sunshine Coast offsetting gains elsewhere. The state's annual leaders tell a different story, and every one of them is an inland or heritage service town well away from the coastal markets that have stalled.

1. Emerald / Annual growth: +22.5% / Median value: $559,842

Emerald is the service centre of the Central Highlands, sitting between the Bowen Basin coalfields and a large irrigated farming district watered by Fairbairn Dam. Mining and agriculture together give it an income base well above what its price tag suggests. It led Queensland for annual growth and offers a gross rental yield of 5.7 per cent, the highest of the state's five markets here.

2. Kingaroy / Annual growth: +20.6% / Median value: $599,163

Kingaroy is the heart of the South Burnett, a peanut and grain growing district north-west of Brisbane, and the town still has the silos to prove it. It has become an affordable alternative for buyers pushed out of the south-east corner. Values rose 4.4 per cent in the three months to July alone, the fastest quarterly gain of any Queensland market.

3. Warwick / Annual growth: +18.2% / Median value: $637,546

Known as the Rose City, Warwick sits on the Condamine River in the Southern Downs, south of Toowoomba, and its sandstone streetscapes are among the best preserved in Queensland. Rents have run hard here, up 10.3 per cent over the year, and the vacancy rate of 0.9 per cent is one of the tightest in the state.

4. Maryborough / Annual growth: +17.8% / Median value: $612,349

One of Queensland's oldest provincial cities, Maryborough sits on the Mary River just inland from Hervey Bay, with a heritage centre of timber Queenslanders and colonial public buildings and a long history in rail engineering. Cotality names it among the markets whose growth offset the falls on the Queensland coast, with values up 2.0 per cent over the quarter.

5. Toowoomba / Annual growth: +17.4% / Median value: $862,260

Australia's second largest inland city sits on the edge of the Great Dividing Range escarpment, looking east towards Brisbane and west across the Darling Downs. It has the health, education and freight infrastructure of a small capital, which is why it carries much the highest median value on this list. Homes sell fast, at a median 14 days, and rents rose 7.9 per cent over the year.

Top Regional South Australia growth markets in 2026

South Australia's regions were the strongest in the country over the three months to July, up 2.1 per cent alongside Western Australia, and most of that strength sat outside the state's larger centres. The industrial cities of the Upper Spencer Gulf and the Eyre Peninsula led the way.

1. Port Pirie / Annual growth: +18.6% / Median value: $368,232

Port Pirie sits at the head of the Spencer Gulf, built around one of the world's largest lead smelters and a deep-water port that has anchored the town for more than a century. It is among the most affordable markets in the country. That buys income: a gross rental yield of 5.9 per cent and a vacancy rate of 0.3 per cent, the tightest in the state.

2. Whyalla / Annual growth: +16.9% / Median value: $349,755

Whyalla is the largest city on the Upper Spencer Gulf, a purpose-built industrial port with a steelworks at its centre and a shoreline known for the giant cuttlefish that gather there each winter. It carries the lowest median value of any market on this page, and the combination of low prices and rising rents produced a gross rental yield of 5.6 per cent.

3. Port Lincoln / Annual growth: +14.1% / Median value: $573,176

Port Lincoln sits on Boston Bay at the foot of the Eyre Peninsula and calls itself the seafood capital of Australia, with tuna, oysters and abalone underpinning the local economy alongside grain. The lifestyle draw is obvious and the town prices accordingly, well above the industrial centres to its north. Rents rose 10.1 per cent over the year.

4. Mount Gambier / Annual growth: +13.8% / Median value: $574,254

The largest city in South Australia outside Adelaide, Mount Gambier sits on the Limestone Coast roughly halfway between Adelaide and Melbourne, on a volcanic complex that includes the Blue Lake. Forestry, agriculture and tourism carry the local economy. It is a steady rather than spectacular market, with homes taking a median 38 days to sell.

5. Murray Bridge / Annual growth: +13.6% / Median value: $614,090

Murray Bridge sits on the Murray River about an hour east of Adelaide, close enough to work as a commuter town while keeping a country feel and a working agricultural base. It grew 3.1 per cent in the three months to July, one of the stronger quarterly results in the state, and the vendor discount of 2.0 per cent points to sellers holding firm on price.

Top Regional Western Australia growth markets in 2026

Western Australia dominates the national leaderboard, holding four of the five fastest-growing regional markets in the country. Its resources towns and its coastal centres both ran hard over the year, although Cotality notes that growth in the previously robust south-west has started to fade.

1. Kalgoorlie - Boulder / Annual growth: +32.7% / Median value: $502,702

The Goldfields capital is built beside the Super Pit, one of the largest open-cut gold mines in the world, and its wide streets and grand hotels date from the rush of the 1890s. It was the fastest-growing regional market in Australia this year by a wide margin. Homes sell in a median 10 days, the quickest in the country, on a gross rental yield of 7.7 per cent.

2. Karratha / Annual growth: +23.3% / Median value: $771,028

Karratha is the Pilbara's main centre, purpose-built to service the iron ore, salt and North West Shelf gas projects shipping out of nearby Dampier. Its market moves with the resources cycle and it is moving up now, with sales volumes 29.5 per cent higher over the year. Rents are the highest of any market on this page at a median $1,502 a week, producing a gross rental yield of 10.6 per cent.

3. Albany / Annual growth: +22.1% / Median value: $837,780

Albany sits on King George Sound on the state's south coast, the oldest European settlement in Western Australia and the port from which the first Anzac convoys sailed. Its harbour, its national parks and its cool climate have made it a destination for retirees and remote workers alike. It topped the national growth list a year ago, and rents have kept pace, rising 13.4 per cent over the year.

4. Geraldton / Annual growth: +20.7% / Median value: $626,262

Geraldton is the Mid West's port city, shipping iron ore and grain and landing a large share of the state's rock lobster catch, with the Abrolhos Islands offshore. It is also one of the windiest cities in the country, which has made it a fixture on the world windsurfing circuit. Values rose 3.8 per cent in the three months to July, one of the strongest quarterly results in the state, and rents are up 8.2 per cent over the year.

5. Bunbury / Annual growth: +18.1% / Median value: $826,322

Bunbury is the largest centre in the state's South West, a port city on Koombana Bay about two hours south of Perth and the gateway to the Ferguson Valley and the Margaret River wine region. It is the priciest of these five markets after Albany, and one of the few whose growth is driven by lifestyle demand rather than resources. Homes sell in a median 14 days.

Top Regional Tasmania growth markets in 2026

Tasmania's north is where the growth is, with all four qualifying regional markets posting double-digit annual gains. Affordability relative to Hobart and to the mainland continues to do most of the work.

1. Burnie - Somerset / Annual growth: +16.7% / Median value: $546,740

Burnie is a working port on Tasmania's north-west coast, with a deep-water harbour that handles much of the island's freight and an industrial history in paper and mining services. Somerset sits just along the coast to the west. Values rose 3.8 per cent in the three months to July, the strongest quarterly result in the state, and rents are up 7.2 per cent over the year.

2. Launceston / Annual growth: +15.1% / Median value: $676,469

Launceston is northern Tasmania's hub, set where the North and South Esk rivers meet to form the Tamar, with Cataract Gorge cut into the edge of the city and the Tamar Valley vineyards beyond. Its Georgian and Victorian streetscapes are among the best preserved in the country. Rents rose 13.1 per cent over the year, one of the fastest increases in regional Australia, and homes sell in a median 17 days.

3. Ulverstone / Annual growth: +14.7% / Median value: $627,175

Ulverstone sits at the mouth of the Leven River between Devonport and Burnie, a quieter coastal town that has long drawn retirees and families after a slower pace. It is the smallest market on this page by sales volume, which makes its numbers move more than most. Homes take a median 40 days to sell, the longest wait in the state.

4. Devonport / Annual growth: +14.3% / Median value: $586,770

Devonport is the arrival point for anyone crossing Bass Strait by sea, with the ferry terminal on the Mersey River at the centre of town and a farming district behind it growing much of the state's vegetable crop. Rents have risen sharply, up 10.2 per cent over the year, while the vacancy rate of 2.7 per cent is the loosest of the four Tasmanian markets here.

Investing in regional property markets

Based on the above you should have a good starting point for researching specific regional markets. Like any location, you need to look at a combination of factors when analysing regional property – including population, economic growth, affordability, rental yield and capital growth.