Regional Prices Continue Strong Growth

While prices in regional NSW areas climbed 0.3% in June, slightly behind the national monthly average, regional NSW areas have annual growth of 6.0% outpacing the combined capitals [+4.1%].

According to the PropTrack report, ”while growth in the regions has been slower than the rebound across the capitals in 2025, regional markets remain resilient, supported by affordability and lifestyle appeal. Regional prices are now up just above 65% over the past five years.”

PropTrack and REA spokesperson, Senior Analyst Ms Elanor Creagh, said market momentum was building amid renewed buyer confidence and improved sentiment, buoyed by falling interest rates and expectations of another rate cut in July. 

“However, the upturn remains measured as affordability constraints keep the pace of growth in check,” she said.    

“Further interest rate cuts expected later this year will ease borrowing costs, adding to the momentum in housing demand and reinforcing recent price growth.” 

Population growth and limited new supply have also been placing upward pressure on prices, especially at the more affordable end of the market. 

“With interest rates moving lower, these factors are likely to sustain price growth over the second half of 2025,” Ms Creagh said.  

“Despite these tailwinds, the upturn remains gradual and stretched affordability will see a more measured upswing than in previous easing cycles.” 

On average, the Southern Highlands property market reflects the figures released by Proptrack on 1 July, based on the market as a whole – where some areas have a zero or minus growth rate in comparison to areas with an average of 10%+ growth rate.

In compiling this report, PropTrack Pty Ltd (PropTrack) has relied on historical and current data supplied by State government agencies. The information contained in this report is summary information only. PropTrack does not make any warranty as to the accuracy, completeness or reliability of the information or accept any liability arising in any way from any omissions or errors. The information should not be regarded as advice or relied upon by you or any other person and we recommend that you seek professional advice before making any property decisions.