Revealed: The unexpected towns Aussie homebuyers are flocking to

Home buyers are flooding into unlikely corners of the country as interest rate cuts unleash a wave of demand, with regional towns topping the list of areas surging in popularity.

Lending figures from Westpac revealed nearly half of the top 30 suburbs with the biggest increase in buying activity over the year to May were outside capital cities.

It signalled a dramatic shift away from some traditional urban strongholds, with buyers chasing affordability, lifestyle and better bang for their buck in a range of once overlooked regional areas.

Growth areas also reflected where new infrastructure was attracting more people.

Among the biggest lending activity growth across Queensland was in Bundaberg, where there was a recent major port expansion.

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Port Stephens and Lake Macquarie were some of NSW’s biggest growth centres.

Some of Victoria’s biggest lifts in buying activity were recorded in Wangaratta and Benalla – both seen as alternatives to Melbourne.

Westpac economist Matthew Hassan said the push to regional areas could be seen in pricing growth nationally.

“Regional Australia continues to outperform,” he said, noting prices in regional areas were rose by an average of 5.9 per cent over the past year compared to 3 per cent growth across capital cities.

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He noted that regional property values had surged 65 per cent since 2019 – outpacing capitals by nearly 25 per cent.

Mr Hassan said a shift to the regions – a trend particularly strong during the Covid years – was proving “more enduring than initially expected”.

Westpac director of mortgages James Hutton said the rush underscored how younger Australians were using their boosted borrowing power to leap on lifestyle-driven opportunities.

“Australians recognise the value and lifestyle benefits of regional living,” Mr Hutton said.

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“Whether it’s the coast, the hinterland, or vibrant regional centres, these areas are experiencing strong growth as buyers seek space, affordability, and a sense of community.

“These aren’t just homes – they are lifestyle decisions.”

Westpac data showed there were also city pockets emerging as purchaser hot spots, including North Sydney and Canterbury in Sydney and Glen Eira and Yarra in Melbourne.

South Australia’s biggest jumps in buying activity were in coastal Adelaide suburbs Port Adelaide West and Holdfast Bay.

Mr Hassan said one of the challenges for new market entrants over the coming months would be the lack of housing supply.

“The big issue heading into spring and year-end is the very low level of listings,” he said.

“Brisbane, Adelaide and Perth barely have enough listings to cover two months of sales at the current pace, which is less than half what’s normal for these markets.”

BOOM AREAS (by growth in buying activity)

1. Mid-west WA

2. Lake Macquarie-East, NSW

3. Glen Eira, VIC

4. North Sydney, NSW

5. Perth City (Leederville), WA

6. Boroondara, VIC

7. Jimboomba, QLD

8. Yarra, VIC

9. Bundaberg, QLD

10. Tweed Valley, NSW

11. Wanneroo, WA

12. Boroondara, VIC

13. Townsville, QLD

14. Wangaratta – Benalla, VIC

15. Burleigh, QLD

16. Port Adelaide-West, SA

17. Caboolture, QLD

18. Holdfast Bay, SA

19. Ipswich-West, QLD

20. Port Stephens, NSW

21. Canterbury, NSW

22. Stonnington-West, VIC

23. Grampians, VIC

24. Unley, SA

25. Great Lakes, NSW

26. Mandurah, WA

27. Mornington Peninsula, VIC

28. Eastern Suburbs – North, NSW

29. Eastern Suburbs – South, NSW

30. Lower Hunter, NSW

31. Playford, SA

32. Augusta – Margaret River – Busselton, WA

33. Charles Sturt, SA

34. Perth City, WA

35. Kalamunda, WA

36. Bunbury, WA

37. Stirling, WA

38. Joondalup, WA

39. Sutherland – Menai – Heathcote, NSW

40. Austral, NSW

Source: Westpac

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