Buyer confidence grows in regional hubs as market conditions improve
Australia’s regional property markets are maintaining strong momentum in 2025, even as national home values post steady gains.
Recent figures from NAB highlights how buyers are continuing to favour regional areas, driven by affordability, lifestyle appeal and government support schemes.
Nationally, home values rose 0.5% in May, bringing growth to 1.7% over the first five months of the year. While all capital cities recorded value increases, it is the regional markets that are showing sustained strength.
“Queensland regional hotspots dominated our list of the five hottest regional markets so far in 2025,” said Denton Pugh (pictured), NAB executive for home lending. “Toowoomba, Burnett, Springfield-Redbank, and the Sunshine Coast Hinterland all ranked high for home loan activity.”
Geelong in Victoria was the only non-Queensland location to make NAB’s top five. Other regional areas with elevated loan activity included Mandurah, WA; Loganlea , Queensland; Ballarat, Victoria; Maryborough, Queensland; and Mackay, Queensland.
The trend reflects a continuation of the regional shift seen during the pandemic years. “They offer affordability and the potential for long-term growth,” Pugh said, adding that many buyers are prioritising proximity to family, lifestyle flexibility, and space for growing families.
One such buyer is 32-year-old Emily Chalk, who recently purchased her first home in a town near Rockhampton, Queensland, after spending six months searching. Support from NAB and the federal government’s Home Guarantee Scheme helped her secure the property. “I already know most of my neighbours, I definitely didn’t have that when I was living in Brisbane,” she said.
First-home buyer activity is rising, with NAB reporting a 16% increase in lending to this group since February. Broader home lending is also up 32% over the same period. According to Pugh, rate cuts and buyer incentives are playing a key role in supporting demand. “We’re starting to see more people take that first step into homeownership,” he said.
While regional markets are thriving, challenges remain. “We need more homes,” said Pugh, who stressed that supply and affordability continue to be major hurdles. He called for long-term solutions and better planning to ensure housing is delivered where people want to live.
With most economists forecasting further rate cuts this year, winter activity may stay stronger than usual and set the stage for a more active spring. “Winter activity is expected to be a little higher than usual,” Pugh said, suggesting momentum in regional areas is far from slowing.
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