Regional Victoria | Winter 2026 Residential Report

Regional Victoria’s property market is showing mixed conditions, with strong sales activity, moderating price performance and ongoing rental demand. The Winter 2026 Regional Victoria Residential Property Report highlights a transitioning market, underpinned by tightening supply, steady population growth and resilient buyer interest across regional centres.

For buyers, investors and lifestyle movers, regional Victoria real estate continues to offer long‑term value, stable rental performance and improving growth prospects as conditions rebalance.

Sales activity strengthens across regional markets
Residential sales across Regional Victoria increased 20% over the past year, reaching 37,417 transactions and outperforming the five‑year annual average.


Regional Victoria accounted for 27% of total residential sales across the state, reinforcing its role within the broader Victorian housing market.


At the same time, homes are selling faster, with average days on market falling to 55 days, indicating improved buyer confidence and stronger demand.

Supply constraints influencing market conditions
Housing supply across Regional Victoria remains constrained, despite new listings increasing slightly by 0.1% year‑on‑year.


Total listings declined by 12.9%, limiting available stock and supporting competitive conditions in key markets.


Population growth of 1.1% continues to support underlying housing demand and place pressure on supply.

Price correction with stabilising outlook
Regional Victoria property prices declined 1.7% over the past year, bringing the average residential value to approximately $698,800.


Quarterly price movement of -2.0% reflects a period of adjustment following previous growth cycles.


Looking ahead, McGrath Research forecasts price growth of 3% in 2026, followed by a stable outlook in 2027, indicating improving market conditions.

Rental market remains undersupplied
Regional Victoria’s rental market continues to face undersupply, with vacancy rates at 2.3%, below the balanced benchmark of 3%.


Rents increased 5.2% year‑on‑year to an average of $505 per week, reflecting steady tenant demand despite stabilising conditions.


Rental growth is forecast to accelerate, with rents expected to rise 9% in 2026 and a further 8% in 2027.


Gross rental yields currently sit at 4.40%, offering stable returns for investors in a tightening rental environment.

Economic fundamentals supporting demand
Regional Victoria is supported by steady economic conditions, including national economic growth of 2.5% and lower‑than‑average unemployment of 4.0%.


Interest rates remain a key factor influencing affordability, with the cash rate currently at 4.35%.


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

Outlook for Regional Victoria property in 2026
With strong sales activity, constrained supply and ongoing rental demand, Regional Victoria is well positioned for a period of stabilisation and moderate growth in 2026.


For buyers and investors, the region offers a balanced mix of affordability, rental performance and long‑term potential as the market shifts toward its next growth phase.

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