Fastest growing regional areas for property investment in 2024

Looking to snag a property in a regional market over 2024? 

Then you will want to identify the fastest growing hotspots far away from the big smoke. Read this guide to understand how the Australian regional property market performed in 2023, and how it's predicted to perform in 2024 - based on expert insights.

Let’s start by taking a big-picture view of regional markets and how they performed over the past year.

How did regional markets perform in 2023?

Overall regional markets recorded more subdued growth over ‘23, particularly compared to the strong capital gains recorded from 2020 to 2022. That ‘blip’ has also meant many regional markets have become less affordable, and therefore less attractive to investors. Another factor is that internal migration patterns - which saw people flooding out of dense inner cities due to COVID fears - have ‘normalised’, so there is less frenzied demand. 

In terms of the numbers, regional markets were eclipsed by the capital cities over 2023, which grew +9.3 per cent vs +4.4 per cent for combined regional areas. And while the gap between median property values in regional areas ($605,780) vs capital cities has narrowed ($832,193) - you still get more for your money in country towns and rural locations. 

Let’s now look at some standout regional town performers from across the country.

What are the fastest-growing regional towns in Australia?

CoreLogic’s recent Regional Market Update recorded the following regional growth hotspots over ‘23:

• Bundaberg in Queensland recorded the highest overall annual growth, rising +10.8 per cent over the year.
• Mount Gambier in South Australia recorded the second-highest annual growth, up +10.6 per cent over that timeframe.
• Bunbery in WA recorded the highest quarterly growth, up +4.6 per cent over the final quarter of ‘23.
• Albany in WA had the shortest days on market: with properties taking just 18 days to sell.
• Lismore in NSW had the highest change in annual sales volume: up +16.5 per cent on the previous year.

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

Regional NSW

Towns that have posted outstanding growth over the past 12 months include:

Gunnedah in New England, where prices are up +18.8 percent and the median house price is $475,000. Houses in Gunnedah rent out for $450 per week with an annual rental yield of 5.8 per cent. 

If you've got an an eye on rental yields, Soho identified the following locations for investors to watch:

• Bowral (4.6 per cent)
• Mittagong (4.5 per cent)
• The Central Coast (4.7 per cent)

Regional Queensland

According to the Real Estate Institute of Queensland (REIQ) demand outside of Brisbane over the last quarter of ‘23 was dominated by house sales in the Gold Coast (1,822), Moreton Bay (1,596), Logan (1,156), Sunshine Coast (1,120) and Townsville (1,060).

Its data indicated the following regional locations posted double digit growth over ‘23:

• Rockhampton, which grew +11.7 for a median house price of $232,500.
• Bundaberg, which grew +10.7 per cent for a median house price of $435,000.
• Toowoomba, which grew +10 per cent for a median house price of $550,000.

Regional South Australia

According to the Real Estate Institute of South Australia (REISA) the following performed well over ‘23:

• Victor Harbor, just south of Adelaide, grew +26.8 per cent for a median house price of $659,500
• Naracoorte on the Limestone Coast grew +20.8 per cent, for a median house price of $377,500.
• Murray Bridge, east of Adelaide, grew +19.7 per cent for a median house price of $395,000.
• Port Lincoln, on the Eyre Peninsula, grew +20.0 per cent for a median house price of $432,000.

Regional Western Australia

According to the Real Estate Institute of WA (REIWA) the following are the top-performing regional locations:

• Augusta, south of Margaret River, grew +20.6 per cent for a median house price of $790,000.
• Spalding, in Geraldton, grew +35.9 per cent for a median house price of $272,500.
• Mount Barker in the Great Southern Region, grew +18.2 for a median house price of $325,000.

Regional Tasmania 

The Real Estate Institute of Tasmania (REIT) reports that outside of Hobart, the following locations recorded the highest number of sales over the final quarter of ‘23: Launceston (228), Clarence (226), Burnie ( 71), Devonport (47) and Kingston (35).

Otherwise, many locations recorded negative growth over ‘23, which could be a prelude to a resurgence over the year ahead.

Regional Northern Territory

Regional markets in the NT are relatively small with low transactions and very little recorded data. 

If you do want to invest in the top end you should investigate Darwin, which has affordable property with some of the highest rental yields in the country - particularly for units in the northern suburbs. API magazine recommends suburbs such as Nightcliff, where the median unit price is $376,000, with an annual rental yield of 7.2 per cent. 

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.