Regional Victoria | Spring 2026 Residential Report

Regional Victoria's property market enters Spring 2026 with improving activity levels and signs of stabilisation following a period of price correction. Annual sales activity has strengthened significantly, homes are selling faster than they were a year ago and rental conditions remain undersupplied across many regional markets. While dwelling values remain below year-ago levels, recent quarterly growth and positive forecasts suggest conditions may be improving.

Market snapshot

Regional Victoria recorded 37,432 residential property sales in the year to Q2 2026, representing annual growth of 14% and exceeding the five-year average. Homes are taking an average of 51 days to sell, 14 days faster than a year ago, reflecting improved buyer activity across the region. New listings increased 15.0% year-on-year, while total listings declined 3.0%, pointing to strengthening absorption of available housing stock.

Property prices

Regional Victoria residential property values remain below year-ago levels despite showing recent signs of recovery. The average residential property value sits at $705,000, down 3.2% over the past year but up 0.9% during the most recent quarter. McGrath Research forecasts Regional Victoria residential property prices will increase by 2% by the end of 2026 and a further 1% in 2027 as market conditions continue to stabilise.

Rental market

Rental conditions remain tight across Regional Victoria, with vacancy rates recorded at 2.4% at the end of Q2 2026, below the level generally considered a balanced market. Average weekly rents increased 5.2% over the past year to $510 per week, supported by limited rental supply and steady tenant demand. McGrath Research forecasts rents will rise a further 4% by the end of 2026 and 5% in 2027.

Economic drivers

Population growth, employment conditions and housing supply continue to shape Regional Victoria's property market. Population growth reached 1.1% in 2025, while unemployment remained relatively low at 4.4%. New home construction across Victoria remains constrained, with dwelling completions declining 9.3% over the year and building approvals also trending lower. These supply limitations are helping support longer-term housing demand across regional centres.

Outlook for Regional Victoria property

Regional Victoria's housing market is expected to continue recovering through the remainder of 2026. McGrath Research forecasts a return to positive price growth as affordability advantages, improving sales activity and constrained housing supply support demand. Rental market conditions are also expected to remain undersupplied, contributing to further rental growth across many regional locations.

Explore the full Spring report for detailed insights into sales activity, housing supply, property values and rental market performance across Regional Victoria.