Professional property buyers in Australia tend to focus on a few markets that they believe have stronger potential for price growth than the rest of the country.
Buyers’ agents across the country are turning to previously unpopular property markets, shifting investors’ focus to areas targeted for price growth.
As traditionally investor-heavy markets approach the peak of their cycle, professional property buyers are looking to areas where affordability, infrastructure and lifestyle changes can provide the next driver of growth.
Interstate investors have been increasingly active in recent years, helping fuel prices rise in small towns and regional cities as big cities lag behind.
But experts say previously dormant markets could be reawakened as investors look to buy the next big thing before it takes off.
Why investors buy interstate
Simon Pressley, managing director of Brisbane-based national buyer agency Propertyology, said interregional investing was not just about finding affordable properties, but also about removing hometown bias.
“If you’re going to buy a property for investment purposes, don’t pay attention to the city where you currently live, where you’ve lived, and where you’d like to live, because it’s not for you,” he said.
“Someone who lives in Brisbane and has a family home there, if they’re ready to invest in real estate now, the first place they should go is Brisbane.”
Propertyology managing director Simon Pressley says interregional investing avoids putting too many eggs in one basket. Image: Provided
Looking further afield allows investors to take advantage of economic growth at the regional and city level, which is not always moving at the same rate in Australia, he said.
“The biggest impact on the real estate market is how the economy of each city is doing,” he said.
“The best state economies in Australia at the moment are Queensland, South Australia and Western Australia, but there are better opportunities outside their capital cities.”
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Brisbane (pictured), Perth and Adelaide have been the strongest housing markets recently, but professionals may have opportunities for strong growth in other markets. Photo: realestate.com.au/sold
Property prices have nearly doubled in the past five years in both titles and county areas in these states, PropTrack data shows.
In just a few years, Perth has gone from being the second cheapest capital city to the third most expensive, with its median home price now sitting at $987,000 after rising almost 20% last year.
PropTrack chief economist Eleanor Creagh said a shortage of available housing had pushed prices up in the capital’s fast-growing cities.
“The strongest conditions remain concentrated in markets where consumer demand is facing strong supply, particularly in Perth, Darwin, Brisbane and Adelaide,” he said.
Home price growth – 12 months to February 2026
While the strongest housing markets in recent years still have momentum, Mr Pressley said Australia’s southernmost state was worth watching, as growth began to turn around.
“Another state economy to watch out for is Tasmania, which has shown a resurgence in recent times,” Ms Pressley said.
Hobart’s median home price rose 9.2% last year to $718,000 – just below its record high – with growth outstripping Sydney, Melbourne and Canberra, according to PropTrack data.
Strategy first
Goose McGrath, chief executive of real estate investment firm Dashdot, said building a successful real estate portfolio isn’t just about finding the next place to move to.
“It’s not just a collection of buildings,” he said. “It’s a series of investments bought in a way to help you reach your goal.”
Dashdot CEO Goose McGrath said jobs, lifestyle and affordability are key factors when choosing where to invest, but the choice of suburbs should depend on the investor’s needs. Image: Provided
He said most investors will need between four and six properties to achieve financial freedom within 10 to 20 years.
“Understanding the specific constraints of your portfolio will inform you which assets to buy in the order in which they should be purchased and why,” he said. “The selection of a location comes down to having the first strategy.”
He said that the only regions that the company currently buys from are Tasmania, Victoria and NSW, which was focused on Queensland, South Australia and Western Australia.
“There are less than 15,000 places in Australia, but at any given time we shop at about 100 places,” he said. “Out of 100 places, maybe only 20 of them are suitable for an individual site selection strategy.”
Cycle time
Matthew Hughes, managing director of Perth-based Capital Property Advisory, said that while the strongest funds had delivered significant returns, investors needed to be more selective during the later stages of the growth cycle.
While Perth has fared better than other capitals, large price increases have meant the budget required to buy investment property has risen significantly.
Capital Property Advisory’s chief executive, Matthew Hughes, says long-term property price growth has moved in and out of hot markets. Image: Provided
“Perth and Brisbane are in the same place right now,” he said. “There’s still growth in this cycle, but if you’re an investor you want to put your time better in both of those markets.”
The situation was slightly different in Adelaide, where he said a strong flow of new homes could change the dynamics of supply.
“Adelaide did very well but I think it will soften a lot before Perth and Brisbane,” he said.
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Mr Hughes said he had deliberately avoided some popular markets that have become targets for interstate investors.
“People flocked to Darwin – we didn’t,” he said. “We’re not putting people in the next boom town where all the other investors are flocking to.”
“It’s short-term sugar instead of long-term dysfunction.”
Contrarian pick
Despite wider economic concerns including paying off state government debt and high taxes, Mr Hughes said Victoria was well placed among the states for long-term growth.
“On balance Victoria and Melbourne represent the best value proposition at the moment,” he said. “In the next five years the growth is better than anywhere else we have seen in the country.”
Areas below Melbourne’s central ring are tipped to perform well in the long term after a long period of slow growth. Image: Getty
With a median house price of $854,000, Melbourne is now the third most affordable capital after Darwin and Hobart.
The city’s five-year house price growth of around 13% dwarfed the national rate of 45% over that period, and was well behind Perth’s 98% rise.
“It sits a lot lower in the price range than it usually does,” Mr Hughes said.
While some of Melbourne’s outer suburbs have seen an influx of investors recently, these areas were not Mr Hughes’ focus.
Geelong has emerged as an investor magnet, with prices more affordable than Melbourne and higher rental yields. Photo: Getty
“Where we buy for investors is mainly central Melbourne and other parts of regional Victoria, especially Geelong,” he said.
“Geelong has experienced the highest population growth and is a slightly better yield market.”
Jobs, lifestyle and affordability
Mr McGrath said regional areas were often popular because of the balance of jobs, lifestyle and relative affordability, with most properties the company bought for clients priced between $450,000 and $750,000.
“A good example is a large regional center like Ballarat – places with significant economic potential, desirable places for people to live and raise a family, they have features and characteristics that make them viable,” he said. “And median house prices are acceptable.”
Launceston and Bendigo were two other regional cities that fit the bill, he said.
Head betting
InvestorKit CEO, Arjun Paliwal, said that deciding where to invest is not just about choosing the next market to grow, but increasing diversification within the geographic portfolio to take advantage of different stages of the growth cycle.
“It’s rare for all areas to come together and experience growth or decline at the same time,” he said.
InvestorKit CEO Arjun Paliwal says the choice of where to buy can depend on an investor’s current budget. Image: Provided
He said Melbourne was the best “value buy” at the moment, while several regional markets with strong momentum were also on the radar of investors looking for fast growth.
“Melbourne is a market at the beginning of its cycle,” he said. “Affordability trends in the area have been improving, even amid the country’s economy and tax woes.”
Most of the investors he worked with were buying in NSW and Victoria, he said.
“Dubbo, Townsville, Rockhampton, Mildura, Tamworth and Albury‑Wodonga are affordable growth markets,” he said. “Newcastle, Maitland and Bathurst are also growing at an alarming rate.”
Mr Paliwal singled out Dubbo as a rising market – the average house price has risen by almost 10% in the past year. Photo: Getty Images
Mr Paliwal said he has diversified his portfolio to take advantage of short-term and long-term growth.
“I bought a property in Melbourne, and after that I bought a property in Dubbo.”
“I knew Melbourne was going to be a slow start but I was buying value. I placed my bet on a fast growing market.”
