Regional Markets Outperforming Capital Cities: What This Means for Hinterland Sellers

Posted: 23 Jan 2026

As the calendar turns to 2026, data from realestate.com.au Insights shows a continuing trend: regional property markets are outpacing Australia’s capital cities in price growth, a dynamic that Hinterland sellers should watch closely.

According to the PropTrack Home Price Index, national home prices have climbed sharply in recent years, but homes in regional areas have recorded stronger annual growth (9.8%) than capital cities (8.5%). This pattern has been consistent since mid-2024 and remains robust into early 2026.

One of the key drivers behind this shift is rising demand for regional living. Many buyers, priced out of capital city markets, are seeking affordability combined with lifestyle benefits, access to space, community and lifestyle amenities that often define areas like the Sunshine Coast Hinterland. Over 2025, demand for regional homes rose significantly more than in capital cities, with enquiries per listing rising sharply as buyers compete for limited stock.

Interstate and internal migration flows have also played a part. Regional markets have experienced net positive migration for years, amplified by remote work flexibility and affordability pressures in major cities. This migration has boosted demand in regional Queensland, among other states, and reinforced price growth outside capital city boundaries.

Another contributing factor is supply constraints. New listings in regional areas declined late in 2025, tightening supply and increasing competition for available properties, a dynamic that both supports price growth and enhances the negotiating position of sellers.

For Hinterland property owners contemplating a sale, these trends present a clear opportunity. With sustained buyer interest, limited supply and migration continuing to favour regional markets, now may be an ideal moment to list

Article based on:

Megan Lieu, Economic Analyst at REA Group view here