Regional Victoria | Autumn 2026 Residential Report

Regional Victoria’s property market is showing signs of stabilisation, with steady price growth, improving sales activity and ongoing rental demand. The Autumn 2026 Regional Victoria Property Report highlights a balanced market, underpinned by population growth, limited housing supply and resilient buyer interest across key regional centres.

For buyers, investors and lifestyle movers, regional Victoria real estate continues to offer affordability, strong rental performance and long‑term growth potential.

Sales activity strengthens across regional markets

Residential sales across Regional Victoria increased significantly over the past year, rising 21% to 36,068 transactions, outperforming Melbourne’s growth over the same period.

Regional Victoria now accounts for 26% of total Victorian residential sales, reflecting its continued importance within the state’s housing market.

At the same time, homes are selling faster, with average days on market falling to 57 days, indicating improved buyer confidence and stronger demand.

Supply constraints supporting market conditions

Housing supply remains tight across Regional Victoria. While new listings increased 10% year-on-year, total listings declined 7.5%, limiting available stock and supporting market stability.

Population growth of 1.2% in 2024, with a long-term forecast of 1.5% annually, continues to drive housing demand and place pressure on supply.

Construction delivery has slowed, down 11.8% year-on-year, further contributing to ongoing supply constraints across regional housing markets.

Modest price growth with positive outlook

Regional Victoria property prices have recorded 2.0% annual growth, bringing the average residential value to approximately $712,800.

While price growth has moderated compared to previous years, quarterly increases of 3.1% suggest improving momentum across the market.

Looking ahead, McGrath Research forecasts price growth of 3% in 2026, followed by 4% in 2027, indicating steady, sustainable growth for regional property markets in Victoria.

Rental market remains undersupplied

Regional Victoria’s rental market continues to face supply shortages, with vacancy rates at 2.1%, below the balanced benchmark of 3%.

Rents have increased 6.3% year-on-year to an average of $505 per week, reflecting strong tenant demand and limited available rental stock.

Rental growth is forecast to continue, with rents expected to rise 9% in 2026, supporting investors targeting regional rental property opportunities.

Gross rental yields currently sit at 4.45%, offering stable returns for investors in a tightening rental environment.

Economic fundamentals supporting long-term demand

Regional Victoria benefits from solid underlying economic conditions, including low unemployment of 3.1% and steady national economic growth.

Interest rates remain a factor in affordability, with the cash rate at 4.10%, although forecasts suggest gradual stabilisation over time.

These fundamentals continue to support demand for lifestyle property, regional housing and investment opportunities across Victoria’s key regional markets.

Outlook for Regional Victoria property in 2026

With improved sales activity, constrained supply and ongoing rental demand, Regional Victoria is well positioned for steady growth in 2026 and beyond.

For buyers and investors, the region offers a compelling mix of value, lifestyle appeal and long-term investment potential, particularly as population growth and housing shortages continue to shape market conditions.

Explore the full Regional Victoria Autumn 2026 Property Report for detailed insights into sales trends, pricing and rental performance across regional markets.