Finance 365

WHY REGIONAL AUSTRALIA IS OUTPERFORMING THE CAPITAL CITIES

Australia’s regional property markets are once again outperforming the capitals.
New Cotality data shows regional dwelling values rose 3.3% in the three months to April, compared to just 1.1% across the combined capitals.

Western Australia remains the standout, with Busselton leading the nation at 7.5% quarterly growth, followed by Albany (7.2%), Geraldton (6.8%) and Bunbury (5.8%).

Queensland also recorded strong conditions, particularly in Townsville, Maryborough and Toowoomba, while Tasmania saw renewed momentum in Burnie-Somerset and Launceston.

The common theme? Affordability.

As prices in many capitals remain high, more buyers are looking to regional markets where they can get more value for money and often a better lifestyle.

Importantly, demand is still outpacing supply in many areas. For instance, in Albany, properties are taking just 10 days to sell, while Busselton homes are selling in 12 days.

“Internal migration patterns continue to favour regional areas where buyers can find greater value and a different pace of life,” said Cotality’s Head of Research for Australia, Gerard Burg.



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ANZ REVISES FORECASTS AS MOMENTUM SLOWS

ANZ has downgraded its property forecasts, as higher interest rates and affordability pressures begin to slow the market.

After prices rose 8.5% in 2025, the bank now expects capital city values to increase just 2.8% in 2026 and 2.1% in 2027.

That revision reflects a clear shift in momentum. Recent data shows prices rising just 0.3% in March, one of the weakest monthly results in more than a year.

Borrowing capacity has been squeezed by higher rates, while consumer confidence has softened, reducing buyer demand.

Sydney and Melbourne are likely to see modest price falls in 2026, reflecting stretched affordability and softer demand.

However, both are tipped to rebound and lead growth again by 2027.

At the same time, the strong run in Perth, Brisbane and Adelaide is expected to ease as supply gradually lifts and demand normalises.



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