Property markets across regional Australia are gaining serious momentum — and Central Victoria is leading the charge.
According to the latest Regional Market Update from Cotality, property values in country areas are now growing at a faster pace than in Australia’s capital cities. The data highlights a significant shift in buyer demand, with regional centres outperforming metropolitan markets in both price growth and sales activity.
Bendigo Surges Ahead
In Bendigo, the median house price has climbed to $633,025, marking a 12.1% increase since January 2025.
That growth rate is:
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Well above the regional Victorian average of 7.1%
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More than double the increase recorded in Melbourne, which saw prices rise by 5.4%
Sales activity tells a similar story. Over the 12 months to November 2025, Bendigo recorded a 30.8% increase in the number of properties sold compared to the previous year — significantly stronger than Melbourne’s 10.1% rise.
This suggests not only rising prices, but also growing buyer confidence and demand.
Castlemaine Remains Competitive
Meanwhile, Castlemaine continues to hold its position as one of the state’s less-affordable regional markets, with a median house price of $770,099.
While price growth has tracked closer to Melbourne’s rate, sales volumes have still increased by 15.8% year-on-year, demonstrating steady demand in the area.
What’s Driving the Shift?
Gerard Burg, Head of Research at Cotality, says the figures reflect a broader national trend.
Australia is experiencing continued internal migration away from major capital cities into regional centres. As affordability pressures intensify in metro areas, more buyers are seeking opportunities in:
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Larger regional hubs
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Inland markets
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Areas that offer lifestyle appeal at a lower entry price
While some of these locations may be less commutable to capital cities, they offer stronger value and, increasingly, strong infrastructure and employment opportunities.
What This Means for Buyers and Sellers
For buyers, regional markets like Bendigo may still offer relative affordability compared to Melbourne — but momentum is building quickly. Acting sooner rather than later could make a significant difference to your purchasing power.
For sellers, rising prices combined with stronger sales volumes indicate favourable conditions, with increased competition among buyers.
For investors, the combination of price growth and strong transaction activity can signal confidence in the underlying market fundamentals.
The Bigger Picture
Regional markets are no longer playing second fiddle to capital cities. In many cases, they’re outperforming them.
As 2026 unfolds, the balance between affordability, lifestyle, and opportunity will continue shaping buyer behaviour across Victoria. Central Victoria’s performance shows that regional property markets are firmly on the radar — and moving fast.
If you’re considering your next move — whether upgrading, investing, or refinancing — understanding how these trends affect your strategy is key.
