Regional NSW Market Report by Lifestyle

Regional property demand continues to grow as Australians look for balance, connection, and quality of life beyond urban centres.

Clearer priorities 

After the pandemic wave, regional living matured. Prices are holding their ground, while demand is being shaped by people prioritising lifestyle. From March 2020 to mid-2025, regional dwelling values in Australia rose by about 53 %, largely driven by pandemic demand shifts. Even now, in the year to June 2025, regional areas climbed ~6.0 %, outpacing many capital markets, with dwelling values up over 65 % in the past five years.
 
According to the September 2025 PropTrack Home Price Index, home values across the regions continued to lift through winter and spring, with regional prices up 7.1% year to date, pointing to durable appetite for lifestyle locations.  

From surge to steady  

Zoom into New South Wales and the picture is one of quiet, consistent growth. Regional NSW prices rose 1.1% over the June quarter and 3.5% over the financial year, with the median dwelling value at about $774,000. Sales are a touch below five-year averages, which tells us this is a thoughtful, well-paced market. Homes are taking around 52 days to sell, and total listings remain lower than last year, which helps keep a floor under prices.

Comfort, efficiency, and the new definition of value

Across regional markets, the conversation is shifting from size and suburb to comfort and performance. More buyers are looking for homes that are energy-efficient, well-insulated, and built to handle the seasons.  

According to Domain’s 2025 Sustainability in Property report, homes with strong energy credentials are now selling for an average 14.5% premium — around $118,000 more — with over half of houses sold featuring at least one efficiency upgrade. The message is clear: sustainability and liveability have become part of the value equation. 
 
For sellers, it’s a cue to invest wisely. Simple upgrades like insulation, solar, or passive design improvements can have a genuine impact on comfort and resale value.  

And what about the rental market?

Under the surface, it’s telling the same story — regional NSW continues to lead the way. The latest Cotality Quarterly Report has just been released, revealing key insights into the rental market. Regional rental growth is now outpacing the capitals, up 5.9% over the past year compared with 3.7% across capital cities (Sydney just 3.5%). With the number of rental listings down roughly 25% year-on-year and vacancy rates sitting at a record low of 1.47% (well below the 3.3% pre-COVID), demand is keeping rents high and competition fierce. Nationally, unit rents are rising faster than houses, reflecting the deep squeeze in affordable supply. 

All of this reinforces what we’ve been seeing on the ground — regional markets aren’t slowing down; they’re strengthening. And for investors, it’s a clear signal: the best opportunities aren’t confined to the capitals. They’re right here, in regional communities where growth is real, returns are steady, and lifestyle leads the way.

Supply is the swing factor

Another reason for stability: there simply isn’t enough stock. NAB’s Q2 snapshot shows listing volumes down on last year in regional NSW, while days on market are steady, not spiking, classic signs of a market with just-enough buyers for not-enough homes. Building new isn’t a quick pressure-release either. Construction costs have eased from the sharp spikes of 2022–23 but are still edging higher, up 0.4% in Q1 and 0.5% in Q2 2025 on Cotality’s Cordell Construction Cost Index, with annual growth sitting around 2.9%. That moderation helps, but it doesn’t suddenly make major renovations or new builds cheap or fast, another reason move-in-ready homes are favoured. 

The new rhythm of regional living  

After years of headline highs and lows, the regional story has found its rhythm. Values are stabilising, buyer interest is consistent, and communities are growing with quiet confidence. The regions have proven they’re not a passing trend — they’re where a more balanced version of the Australian dream is taking shape.  

That’s what defines regional NSW lifestyle market growth this year: steady footing, clear priorities, and a future built on living well.