Regional property markets are still firing, with new data showing values are growing faster than capital city markets.

In the three months to January, property values rose in almost three-quarters (72.6%) of regional suburbs and about half (51.4%)of capital city suburbs, according to CoreLogic data.

CoreLogic economist Kaytlin Ezzy says affordability pressures are continuing to push more buyers into regional areas. “With demand skewing towards the more affordable end of the market, it’s not surprising to see value growth shift away from the capitals, towards the regions, as cash-strapped buyers look further afield for more affordable markets,” Ezzy says.

And even within the regional markets, buyers are looking for bargains with strong demand in the most affordable quartile, driving values up by 9.4% in 2024.

Ezzy says the ongoing demand for regional properties shows that the remote and hybrid work model is here to stay. “With more people able to prioritise lifestyle over job location, the flow of internal migrants to regional markets has settled higher than the levels seen pre-Covid, helping to support housing demand.”