While the eight capitals may dominate attention from home buyers, Australia is full of underrated smaller cities packed with possibilities – and new homes in the pipeline for incoming residents.
From bustling beachside hotspots and goldfields boomtowns to leafy inland centres and vibrant port hubs, the breadth of metropolitan options is vast – both geographically and culturally.
Coast to coast and state to state, there is an abundance of choice to suit lifestyle and budget for those who want a happy medium between capital city and small town.
Wangaratta is attracting locals with a bustling downtown, access to nature and new homes in the pipeline. Image: realestate.com.au
There is no official definition for an Australian city, as the classifications vary across states and territories, but the general rule of thumb is by population (at least 10,000) and factors such as infrastructure and amenities.
"Major" regional cities tend to have a population of more than 100,000, such as Newcastle, Townsville, Geelong and the Gold Coast.
Here are some of Australia’s best small cities for lifestyle, all with new developments currently in the works.
Port Macquarie, New South Wales
With a sunny climate and laid-back vibe, this small picturesque city on the Mid-North Coast has long been a lifestyle destination for nature-lovers, with pristine beaches on one side and the Hastings River on the other.
Leisure activities abound on the water, such as surfing, kayaking and dolphin or whale-watching, or on-land adventures including rainforest walks, museums, galleries and wineries.
Port Macquarie is also the unofficial koala capital of the east coast.
It appeals to home buyers who want a more relaxed pace, such as families, commuting professionals and downsizers, with infrastructure and major hubs within reach.
Set between Sydney and Brisbane – about four and six hours away by car, respectively – the city is well-connected with train stations and its own airport.
New land developments are currently selling such as The Sanctuary, with lots starting from $415,000, and the sprawling masterplanned community Sovereign Hills offering a range of lot sizes.
Nobby Head in Port Macquarie. Image: visitnsw.com
Wangaratta, Victoria
A vibrant city in Victoria’s High Country, Wangaratta is packed with lush-green scenery, historic buildings and modern eateries, about two-and-a-half hours’ drive from Melbourne.
Its position at the junction of the Ovens and King rivers provides plenty of natural beauty, as well as proximity to a range of surrounding wine regions.
Wangaratta has a thriving cultural scene, with an arts precinct and annual jazz festival appealing to locals and tourists alike. There’s also a wealth of heritage attractions including famous Ned Kelly sites in nearby Glenrowan.
Home buyers can snap up titled lots at Warby Views, a sprawling estate set beside Three Mile Creek, five kilometres from the city centre. Land sizes range from 567 to 2000sqm.
An impression of Warby Views, which is currently offering lots for those interested in building in Wangaratta. Image: realestate.com.au
Toowoomba, Queensland
Known as the Garden City, Toowoomba is Queensland’s largest inland urban centre but retains its country charm, in an elevated position on the Great Dividing Range.
This scenic regional city is home to hundreds of parks and hosts the Carnival of Flowers each spring, as well as a growing scene of arts, culture, dining, shopping and sports.
About 90 minutes from Brisbane, Toowoomba is a major transport and logistics hub with thriving job sectors such as agriculture, health, education, manufacturing, energy and construction.
Housing affordability is another factor drawing attention from buyers, with a current median house price of $600,000 and median unit price of $415,000 according to the latest data from realestate.com.au.
Large lots are currently selling at Botanic Highfields Road, a land estate about 20 minutes out of the CBD, ranging from 580sqm to more than 1000sqm.
Toowoomba attracts visitors from all over for its yearly Carnival of Flowers. Image: Queensland.com
Fremantle, Western Australia
While it may be connected to Perth, the historic port city of Fremantle has its own distinct and dynamic identity, with an enviable lifestyle framed by the Swan River and Indian Ocean.
"Freo" has long been a magnet for fans of arts, music and food, home to the iconic Cappuccino Strip and Fishing Boat Harbour and host to a rotating range of festivals and events.
A rich maritime history and heritage landmarks keep the city’s character alive throughout its winding streets.
New developments are fairly rare in this well-established city, which has a median house price of $1.33 million, according to latest realestate.com.au data – but Fremantle has two new luxury projects in the pipeline.
Architecturally designed apartments are available at Muse at Artisan Place, which is currently under construction; and a collection of contemporary townhouses are now selling off-the-plan at Monument East.
The population of Fremantle was 31,930 in the last Census and it’s well-serviced with infrastructure, including schools, healthcare and a train station.
While its part of the Perth metropolitan area, there's no denying that Fremantle has its own distinct character. Image: fremantle.wa.gov.au
Mount Barker, South Australia
It’s the largest regional centre in the Adelaide Hills, but picturesque Mount Barker offers a tranquil lifestyle just 39 kilometres from the capital’s CBD.
Surrounded by premium wineries and food producers, this small city is a beacon for foodies, tourists and tree-changers seeking the country experience with urban amenities.
There’s a wealth of walking trails, wetlands, parks and leafy streetscapes, with panoramic views of it all from the top of Mount Barker Summit.
A heritage railway, farmers market and cultural centre also add to the lifestyle appeal.
As a growing hub, Mount Barker is experiencing a burst of new developments and communities.
Land is currently selling at Springlake Communities, ranging from around 500sqm up to 4400sqm lifestyle lots for building a dream home.
Bluestone Mt Barker is a burgeoning community filled with green spaces and a diverse range of housing options. It’s estimated to be completed by December 2026.
And just two kilometres from the Mount Barker CBD, Newenham offers large premium lots with a range of community amenities in the pipeline.
Mount Barker is a hub for the surrounding wineries and agricultural sector. Image: Wikimedia
Launceston, Tasmania
As the third-oldest city in Australia and the largest in northern Tasmania, Launceston’s liveability is well known – yet its village-style charm remains in 70,000-strong community.
Named a City of Gastronomy by UNESCO, "Launnie" is one of the Apple Isle’s major food bowls, yielding top produce and destinations from farm gates and vineyards to stellar restaurants.
Natural beauty also abounds throughout the landscapes, including rivers, mountains, green hills and the rugged and sacred Cataract Gorge.
Launceston also enjoys a vibrant mix of arts, culture and architectural character.
A new addition is Cedar Grove, an estate within 7km of the CBD, where blocks are selling for between $190,000 and $300,000.
Launceston is considered a "city of gastronomy" by Unesco. Image: Launceston.tas.gov.au
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