Australia’s regional property markets are continuing to outperform capital city markets, according to the latest CoreLogic quarterly regional Market Update.

Its list of the top ten performing regional markets in Australia is dominated by regional centres in Queensland and Western Australia. Mackay in Central Queensland was the top performer in the quarter with 8.3% growth, followed by Geraldton in WA (8.2%) and Townsville in Queensland which was up 6.6%.

CoreLogic economist Kaytlin Ezzy says affordability plays a big role in the growth the top areas achieved. “Regions like Mackay, Geraldton, and Townsville are seeing exceptional growth, driven by affordability advantages compared to our major cities, as well as lifestyle appeal,” she says. “This will have contributed to the strong demand but even with the impressive growth, for those with the capacity to service a mortgage, they still remain attainable with medians less than $600,000.”

Regional dwelling values rose 1.1% in the three months to October, compared with the combined capital cities which grew by 0.8%. Properties sold the fastest in Bunbury in Western Australia – within an average of just 13 days. The report also analyses median dwelling value growth over the past five years and rental growth over the same period. Busselton had the highest dwelling growth of 91%, followed by Maryborough, 90.3% and Bundaberg 90.1%. Gladstone rents were up by 81.6% over the past five years.