Best regional NSW areas for property investment 2025

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 is tracking as well as where it may be headed in 2025.

Let’s start with an overview of how the regional NSW property market performed in 2024.

What did the regional NSW property market look like in 2024?

The regional NSW property market experienced moderate growth throughout 2024, continuing a trend of stabilisation after the rapid price rises seen in earlier years. According to CoreLogic’s January 2025 HVI report, home values across regional NSW rose by +3.2 per cent for the year, trailing the national combined regional markets which saw a +6.0 per cent increase.

While growth has eased, the long-term trajectory remains positive. As of December 2024, CoreLogic data shows that regional NSW property prices are -2.4 per cent below their peak recorded in May 2022. However, prices have surged +49.9 per cent since the onset of the pandemic and an impressive +98.8 per cent over the past decade, underlining the region’s long-term strength.

The McGrath Report 2025 highlighted that demand persisted in affordable lifestyle regions such as the Central Coast and Byron Bay, as well as inland hubs like Orange and Tamworth. However, more expensive regional areas showed signs of cooling as affordability challenges persisted.

CoreLogic’s latest Regional Market Update also pointed to supply constraints and higher borrowing costs as factors keeping a lid on price growth. With limited new development and rising construction costs, available stock remained tight in many regional centres.

Despite these challenges, regional NSW has demonstrated resilience, particularly in areas with strong lifestyle appeal, improving infrastructure, and relative affordability compared to metro markets. With interest rates tipped to decline, 2025 may see further recovery as buyer confidence builds.

Regional NSW property market predictions and price forecasts 2025

The regional NSW property market is projected to experience modest growth in 2025, influenced by several key factors, not least interest rate movements. It's widely predicted that the RBA will cut rates at least twice over the year which could stimulate buyer activity around the country. 

Propertyology's Property Outlook Report 2025, which looks at the 25 largest cities across Australia, forecasts moderate growth for all regional NSW entrants in 2025 including Lake Macquarie, Wollongong, Newcastle and the Shoalhaven. Affordability remains an issue in most markets, though, and buyer demand is expected to be more concentrated around lower-priced housing. 

Supply constraints also continue to impact the market. NSW experienced a 10 per cent decline in building approvals in 2024 compared to the previous year, exacerbating the existing housing undersupply. This shortage is likely to exert upward pressure on property prices in regional areas due to limited availability. 

Population growth and migration trends are again expected to play a significant role in 2025. The ongoing appeal of regional NSW, driven by lifestyle factors and relative affordability, is anticipated to attract both domestic and international migrants. This influx is likely to bolster demand for housing in regional markets, contributing to price growth and increased competition among buyers.

Overall, regional NSW property markets are projected to experience steady growth in 2025. Factors such as sustained demand in affordable markets, limited housing supply, and population growth are anticipated to support property values. However, the extent of this growth may be moderated by persistent affordability challenges and relatively high borrowing costs.

What are the best NSW regional towns to invest in 2025?

According to CoreLogic data, these NSW regions had the highest 12-month growth in dwelling value over 2024:

• Lismore - median dwelling value $537,799, annual growth +13 per cent.
• Muswellbrook - median dwelling value $466,418, annual growth +9.1 per cent.
• Singleton - median dwelling value $639,795, annual growth +7.2 per cent.
• Byron Bay - median dwelling value $1,977,749, annual growth +7.1 per cent.
• Griffith - median dwelling value $515,005, annual growth +6.8 per cent. 

But past growth isn't the only factor that investors should consider. Here are five expert picks for top regional NSW suburbs that investors should be looking at in 2025.

Belmont, NSW 2280

Belmont, located in the Lake Macquarie region, continues to attract investors with its scenic lake views, recreational lifestyle, and commutable distance to Newcastle, Sydney, and the Central Coast. With a median property price of $940,000, values have shown strong long-term growth, rising +4.4 per cent over the past year and averaging +9.7 per cent annually. Smart Property Investment’s Fast 50 report highlights Belmont’s appeal for families and retirees seeking a relaxed, outdoor-focused lifestyle, supported by a diverse range of housing options, from waterfront properties to suburban homes.

Kotara, NSW 2289

Kotara, a vibrant suburb in Newcastle, offers a family-friendly environment with easy access to amenities such as Westfield Kotara, local schools, and parks, making it an ideal location for both families and professionals. Again featuring in the Fast 50 report, Kotara’s property market remains solid, with a median price of $920,000, a +2.1 per cent growth in the past year, and an average annual increase of +8.5 per cent. Its excellent connectivity to Greater Newcastle and Lake Macquarie, along with direct train access to Sydney, continues to drive interest from property investors.

Orange, NSW 2800

Orange, located in the Central Tablelands, is emerging as one of the strongest property hotspots in regional NSW, backed by infrastructure growth and a diverse economy. Wisebuy’s Top 8 Regional NSW Property Hotspots in 2025 cites Orange’s expanding population of over 40,000, government investment in new housing, and a thriving tourism sector as key reasons for its popularity among investors. The median house price sits at $690,000, while units average $454,000, both reflecting steady affordability compared to other growing regional centres. With property values doubling over the past decade, Orange continues to offer long-term growth potential.

Inverell, NSW 2360

Inverell, located in the Northern Tablelands, is quickly gaining attention as a regional property hotspot due to its growing population and affordability. Wisebuy highlights the town’s diversified economy and increasing tourism appeal, with its population now reaching 12,000 residents. The town offers essential amenities, including major retailers, a local hospital, and direct rail links to nearby hubs like Tamworth and Armidale. Despite this growth, the median property price remains highly affordable at $380,000, making it a standout option for budget-conscious investors seeking growth potential.

Mayfield, NSW 2304

Mayfield, just 6 km from Newcastle’s CBD, is recognised by Wisebuy as one of the hottest inner suburbs for property investment in 2025. Offering a vibrant mix of shops, cafes, and easy access to the Pacific Highway and Hunter River, Mayfield balances lifestyle appeal with strong investment potential. The median property price is currently $885,000, and values have surged by an average of +124 per cent over the past decade, with units seeing +21 per cent growth, now averaging $725,000. Its relative affordability compared to neighbouring suburbs, combined with continued growth, makes Mayfield a standout choice for investors.

Frequently asked question about best regional NSW areas for investment property