Regions lead growth in home lending: Westpac

Regional locations account for nearly half of Australia’s top 30 growth areas for homeowners, reflecting a sustained interest in regional living. 

New data from Westpac suggests that factors such as affordability, lifestyle preferences, and targeted infrastructure projects are influencing buyer decisions.

“Australians recognise the value and lifestyle benefits of regional living,” said James Hutton, managing director of mortgages at Westpac. “Whether it’s the coast, the hinterland, or vibrant regional centres, these areas are experiencing strong growth as buyers seek space, affordability, and a sense of community. These aren’t just homes – they are lifestyle decisions.”

The report identifies regional hubs like Lake Macquarie in New South Wales and Bundaberg in Queensland as popular among buyers seeking a balance between natural surroundings and cost-effective housing. In Victoria, towns such as Wangaratta and Benalla are emerging as alternatives to Melbourne’s inner suburbs, providing quieter environments while maintaining access to essential services.

“We’re seeing a diverse mix of growth across the country. In Queensland, demand is surging in regional areas like Bundaberg and Townsville, fuelled by recent infrastructure upgrades such as the Bundaberg Port expansion and North Queensland Stadium. Meanwhile, inner Melbourne areas like Glen Eira and Yarra continue to perform strongly, while regional Victorian centres such as Wangaratta are gaining momentum,” Hutton said.

“In South Australia, coastal suburbs like Port Adelaide West and Holdfast Bay are drawing buyers, while in Western Australia, growth is split between high-value suburbs like Leederville and emerging regional areas such the mid-west, the latter buoyed by the performance of Australia’s iron ore, and gold industries. It’s a clear sign that Australians are exploring a broad range of options when it comes to home ownership.”

Urban markets also remain active, particularly in suburbs benefiting from infrastructure improvements. North Sydney and Canterbury in New South Wales, as well as Glen Eira and Boroondara in Victoria, are seeing increased interest, supported by projects like the Sydney Metro and Melbourne’s Metro Tunnel.

In Brisbane, a corridor of demand has formed about 50 kilometres from the city centre, stretching from Caboolture through Ipswich to Jimboomba.

Westpac’s Home Ownership Report shows a rise in the proportion of Australians intending to buy or rent in capital cities, with 56% now targeting metropolitan areas, up from 52% in 2024.

Westpac economist Matthew Hassan, however, noted that regional price growth continues to outpace that of the capitals.

“Regional Australia continues to outperform, with prices rising 5.9% over the past year compared to three per cent across capital cities,” Hassan said. “More strikingly, since 2019, regional property values have surged 65% – outpacing capitals by nearly 25% – highlighting a trend that has proven more enduring than initially expected.”

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