Australia’s housing market has continued to defy expectations, with prices rising across both capital cities and regional centres despite higher interest rates and cost-of-living pressures. While national growth has averaged around 5 to 6% over the past year, some suburbs, particularly in affordable outer metro and regional areas, have surged far beyond that. Understanding where and why these jumps are happening is essential for buyers, investors, and policymakers trying to make sense of the shifting landscape of affordability and long‑term value.
Why Regional Centres Are Still Booming
The pandemic fundamentally reshaped Australia’s property map. What began as a temporary shift toward space and lifestyle has evolved into a long‑term structural trend. Several factors continue to fuel strong demand in regional cities:
Remote And Hybrid Work
The ability to work from home, even part-time, has made regional living viable for thousands of Australians. Buyers who once needed to be within commuting distance of CBD offices now have far more flexibility, with the number of people working from home increasing.
Lower Entry Price Points
Regional markets still offer significantly better value than capital cities. For example, Ballarat’s median house price in Q2 2024 was $555,000, less than half of Melbourne’s median, which sits well above $900,000 in many reports. This affordability gap continues to attract first-home buyers, young families, and investors priced out of metropolitan areas.
Lifestyle Migration
Tree change and sea change trends remain strong. Buyers are prioritising space, community, and liveability, qualities regional centres deliver in spades. Cities like Ballarat, Bendigo, Geelong, Toowoomba, and Launceston have benefited from this shift.
How Ballarat Compares With Other Victorian Markets
Ballarat has been one of regional Victoria’s most consistently in-demand cities over the past decade. While its growth has stabilised over the past year, its long‑term performance and lifestyle appeal continue to attract buyers.
According to PRD’s 2024 market update, Ballarat recorded a median house price of $555,000 in Q2 2024, showing stable performance year on year. While this represents flatter growth compared with its boom years (2018–2022), Ballarat remains more affordable than Geelong and still outperforms many smaller regional towns in terms of buyer demand, sales volume, and long‑term capital growth.
Ballarat’s appeal is driven by:
- Strong heritage character and architecture
- Excellent schools and health services
- A growing hospitality and arts scene
- Proximity to Melbourne (roughly 90 minutes by train)
- Strong rental demand and yields
Suburbs like Ballarat Central, which recorded 4.8% annual growth in the past year, continue to attract both owner-occupiers and investors. As buyers increasingly seek value outside Melbourne, Ballarat’s combination of affordability and amenity keeps it firmly on the radar, and reinforces the importance of due diligence, including ballarat building inspections, for anyone entering the market.
The Suburbs With The Strongest Price Growth In Australia
While national growth has been steady, some suburbs have skyrocketed. PropTrack data shows that several affordable outer metro and regional suburbs recorded extraordinary gains in 2024.
Top‑performing Suburbs Nationally
According to PropTrack, the suburb with the highest growth in 2024 was Elizabeth South in Adelaide, where the median house price surged by almost 57% in just 12 months. This is more than ten times the national average.
Other high-growth suburbs identified across various reports include:
- Adelaide’s northern and western suburbs, driven by affordability and strong investor demand
- Perth’s outer suburbs, which dominated capital city growth rankings due to low entry prices and population growth
- Regional hotspots in Queensland and Tasmania, where lifestyle migration remains strong
These suburbs share a common theme: they were among the most affordable markets in their respective states. As buyers chase value, lower-priced suburbs often experience the fastest percentage growth.
What This Means For Affordability And Future Value
The surge in lower-priced suburbs highlights a broader shift in the Australian housing market:
- Affordability Is Now The Primary Driver Of Growth – With interest rates still elevated, buyers are prioritising price over proximity. This is pushing demand into outer metro belts and regional centres.
- Regional Markets Will Remain Competitive – As long as remote and hybrid work remain mainstream, regional cities like Ballarat, Bendigo, and Geelong will continue to attract buyers priced out of capital cities.
- High-growth Suburbs May Face Future Pressure – Rapid price increases in previously affordable suburbs can create new affordability challenges. Policymakers will need to consider infrastructure investment, transport links, and housing supply to support sustainable growth.
Australia’s property market is evolving, and the strongest growth is no longer confined to capital cities. Regional centres and affordable outer suburbs are leading the charge, a trend that’s likely to continue as buyers seek value, lifestyle, and long‑term stability. For anyone considering a move or investment, understanding these shifts and the unique dynamics of each region is essential to making a confident, informed decision.
