Property prices in the capital cities have become so high that many buyers have been priced out of the market, but there are more choices for those who are prepared to move to the regional areas of Australia.
For example, the median sale price in Sydney is more than $1 million, whereas in regional NSW it is just $765,000.
Similarly, in Melbourne, the median price is $762,500, compared to $581,000 in regional Victoria.
There has already been high demand for properties in the outer suburbs of the cities, such as in Melbourne's west or the Central Coast in Sydney.
However, more property seekers are prepared to venture out further into the regional areas to find the property they want at a more affordable price.
This increased demand has helped drive strong price growth in the most popular regional areas.
Lochinvar, in the Hunter Valley, has seen the largest growth in median home price over the past 12 months, growing by 67%.
Top 20 regional suburbs with the largest year-on-year price growth
| Suburb | Region | Median property price | 12 month % change |
| Lochinvar NSW 2321 | Hunter Valley exc Newcastle | $800,000 | 67% |
| Hyde Park QLD 4812 | Townsville | $357,500 | 59% |
| Millmerran QLD 4357 | Darling Downs - Maranoa | $375,000 | 50% |
| Tralee NSW 2620 | Capital Region | $799,000 | 50% |
| Tarcoola Beach WA 6530 | Western Australia - Outback (South) | $635,000 | 48% |
| Bonville NSW 2450 | Coffs Harbour - Grafton | $1,350,000 | 46% |
| Bundaberg West QLD 4670 | Wide Bay | $485,000 | 46% |
| Bungalow QLD 4870 | Cairns | $305,000 | 45% |
| Keith SA 5267 | South Australia - South East | $250,000 | 43% |
| Rangeway WA 6530 | Western Australia - Outback (South) | $255,000 | 40% |
| Coober Pedy SA 5723 | South Australia - Outback | $120,000 | 40% |
| Miami QLD 4220 | Gold Coast | $1,370,000 | 39% |
| Binningup WA 6233 | Bunbury | $621,000 | 38% |
| Port Denison WA 6525 | Western Australia - Outback (South) | $460,000 | 36% |
| Wagin WA 6315 | Western Australia - Wheat Belt | $245,000 | 36% |
| Withers WA 6230 | Bunbury | $410,000 | 36% |
| Rockhampton City QLD 4700 | Central Queensland | $347,500 | 35% |
| Harvey WA 6220 | Bunbury | $420,000 | 34% |
| Kapunda SA 5373 | Barossa - Yorke - Mid North | $510,000 | 34% |
| Rosslea QLD 4812 | Townsville | $320,000 | 34% |
The suburb, which is just one hour away from Newcastle, has also beaten all capital city suburbs in terms of price growth, with the exception of two Adelaide suburbs in the past year.
The suburb has seen an increase in new developments recently and this has helped drive up buyer demand and price growth in the area.
Suburbs such as Lochinvar are in a perfect spot for buyers wanting to live in the countryside while still being close to plenty of jobs, bars and restaurants, and other essential amenities.
Townsville has also experienced strong price growth over the past 12 months, with 90% of suburb medians rising.
A recent new build in Lochinvar, NSW. Image: realestate.com.au.
Hyde Park saw the largest growth at 59%, nearly double the growth seen by the second place Townsville suburb, Rosslea.
Other regional Queensland suburbs to show significant growth over the past 12 months were Millmerran, in the Darling Downs - Maranoa region, Bundaberg West in the Wide Bay region and Bungalow in Cairns.
Regional Queensland has increased in popularity in recent years, in particular throughout the pandemic when many buyers and renters flocked to the state.
Queensland continues to be the most popular place for Australians to move to, with the state receiving a net increase of 30,930 interstate arrivals in the year to March 2024.
Suburbs in regional Western Australia have also seen strong growth in the past year, with median prices in Tarcoola Beach, Geraldton, increasing by 48%.
Sea views from a recently sold property in Tarcoola Beach, WA. Image: realestate.com.au.
Geraldton brings in billions in revenue from the exporting of iron ore, grain, and copper through its port and is the main employer in the region.
Tarcoola Beach, known for its beautiful white sandy coastline, is a highly sought-after neighbourhood among buyers.
There were also three South Australian suburbs that made it into the top 20 largest growth suburbs: Keith, Coober Pedy, and Kapunda.
All three have experienced double-digit growth in the past year, with Keith growing the most at 43%.
Suburbs in the other states missed out on making it into the top 20; however, regional suburbs in Victoria have mostly outperformed Melbourne suburbs in terms of year-on-year growth.
Nhill, in North West Victoria experienced 21% of median property price growth in the past year, closely followed by Euroa, in Hume, that saw price growth of 19%.
It remains challenging for property seekers, in particular first-home buyers, to enter the market and as prices in the inner cities get higher and higher, those on a tight budget are being pushed further out into the regions.
However, with many regional towns offering good jobs and a more relaxed way of life, many buyers are considering a change in lifestyle and moving away from the capitals in order to afford a home.
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