Why Investors Are Targeting Regional Growth Hubs in NSW and Victoria
Regional growth hubs in NSW and Victoria are drawing wide-scale attention from first-time and seasoned investors aiming to maximise return on their real estate investment. On 31st March 2025, the NSW Government released the NSW Innovation Blueprint 2035, highlighting a strategy structured to ensure NSW’s remarkable growth and its position as a leader with high-value industries. In December 2024, the Victorian Government released the Economic Growth Statement, highlighting a vision and actions to build a strong economy by easing business conditions in Victoria. The Economic Growth Statement released by the Victorian Government outlines four key strategies- Backing business to invest, expand, and innovate; simplifying to do business across Victoria; ensuring availability of a ready-to-go workforce; and reaching out to the wider community. NSW Innovation Blueprint 2035 and the Economic Growth Statement by the Victorian Government are convincing, inspiring, and encouraging for real estate investors looking for extra advantages to build and expand their property portfolios with different goals.
Regional Growth Hubs Set NSW Real Estate for a Solid 2025
Regional Growth Hubs in NSW, being promoted as part of the Regional Growth NSW initiative, are strategically located areas developed to accelerate economic growth outside of Sydney. The consistent population growth and increasing number of city workers returning to the office set strong regional property market growth prospects within New South Wales for 2025.
Regional NSW property prices increase by +0.4% over the quarter by the end of September 2024. Residential property values increased a modest +0.3% over the September quarter 2024. Median rental income from houses in regional NSW increased by +7.8% annually (median rental of $594/per week) whilst the unit rents increased +5.8% over the September quarter 2024. The regional NSW recording a gross annual rental yield of 4.1% and rents for regional NSW recording +7.8% over the twelve months till September 2024 create a promising investment environment for investors. “The mean price of residential dwellings in New South Wales, recorded as $1,214,100, remained the highest in the country in 2024”- ABS, 11/03/2025.
What Makes Regional NSW The New Property Hotspot?
Potential buyers are finding it challenging to afford the required-sized properties in big cities. According to the Regional Australia Institute, regional NSW, Victoria, and Queensland account for 90% of the influx of people moving from cities, and only NSW shares 36% of this.
The strong buyer demand, proposed infrastructure investments, and expectations of interest rate cuts are driving growth in these regional NSW. For example, over a decade, investment property worth in Mayfield, a north-western suburb of Newcastle, has increased an average of 124%. Similarly, property values in Point Clare crossed the $ 1 million milestone in 2025, increasing at a rate of 7%.
Likewise, average prices for homes across Inverell are just $380,000; it offers a great opportunity for real estate investors to get on the property ladder in a growing tourist hub. Also, the property values across Orange have increased by 100% over the past decade; yet, it is a highly affordable option for any property buyers. Other regional growth hubs that make NSW a promising real estate investment choice for 2025 include Long Jetty, Adamstown Heights, Wagga Wagga, Bathurst, Dubbo, etc.
Regional Growth Hubs in Victoria Set a Promising Real Estate Growth Rate in 2025
Regional Growth Plans of Victoria are aimed at ensuring sustainable development and growth in regional areas outside of Melbourne. Endorsed by local councils, these plans provide directions for land use and development. Regional cities like Greater Geelong, Greater Bendigo, Ballarat, Greater Shepparton, Latrobe City, Wodonga, Warrnambool, Mildura, Wangaratta, and Horsham have diverse economies and strong communities operating as service hubs for smaller communities. Regional Victoria is witnessing increased commercial property activities, driven by the remarkable economic growth and a shift of businesses and residents looking for better affordability and opportunities beyond metropolitan boundaries.
Recently, the Victorian Government announced a $10 million investment in December 2024 to unlock the growth potential of industrial land in regional areas. The funds are being used for developing and advancing essential infrastructure like water supply, electricity, sewerage, and roads, facilitating fast-paced industrial development. Population growth is keeping the demand for housing high, with significant annual rent increases in regions like Mildura, Mansfield, Swan Hill, and Moyne Shire. For example, Mildura has recorded the highest rental growth in regional Victoria, with a 15.9% annual spike- Brisbane Times, April 4, 2025. The strategic government investments and favourable economic indicators make regional Victoria an increasingly attractive destination for residents and businesses alike.
What Makes Regional Victoria the New Property Hotspot?
- Affordability for quality of life
- Lower house prices attract more buyers
- Improved infrastructure and connectivity
- Strong property growth over the past few years
- High rental demand
- Lower competition
- Developing amenities
- Growing communities
Regional centres such as Mildura and Albury/Wodonga are emerging as strategic warehousing and logistics hubs. Victoria’s economy is on a positive trajectory, expected to rise to 2.75% in 2025–26. The labour market is expected to expand with an anticipated addition of approximately 392,000 workers by 2027. Net regional migration remains higher than the preceding five-year average; it shows a sustained influx of residents to regional Victoria areas. Increased demand for housing in regions like Mildura, Mansfield, Swan Hill, and Moyne Shire is driving significant annual rent increases. For example, ‘Mildura has recorded the highest growth in rents across regional Victoria @ 15.9% annual spike’- Domain.
What To Consider for Real Estate Investment in Regional Growth Hubs in NSW and Victoria
Property investment in regional growth hubs offers attractive opportunities for affordability, growth, and lifestyle benefits. However, like any other investment, real estate investment in regional growth hubs also comes with its own set of challenges. Here are some crucial factors you should consider to navigate your regional property investment journey successfully, ensuring the returns you expect-
- Economic Stability: Assess the economic health of the region
- Growth Prospects: Assess the development plans and growth benefits
- Population Trends: Examine demographic data
- Infrastructure Development: Evaluate existing infrastructure and proposed infrastructure development
- Amenities: Assess the available amenities, driving consistency in demand
- Local Government Policies: Evaluate the benefits of government policies
- Rental Demand and Rental Income Growth: Research the local rental market
- Supply and Demand Dynamics: Analyse the balance between supply and demand
- Property Market Trends: Understand local property market trends
- Community and Lifestyle: Understand the influence of community and lifestyle on property values
- Environmental Factors: Assess the possibility and outcomes of natural disasters
- Investment Strategy Alignment: Ensure the suitability of your investment strategy
How Investmate Can Help You Invest in Regional Growth Hubs of NSW And Victoria
Investmate, the leading buyer’s agent, has years of experience in helping investors and first home buyers to make informed decisions. The prominent property consulting experts at Investmate provide comprehensive personalized support to help you invest in regional growth hubs of NSW and Victoria, ensuring maximum return at no risk. Whether you are a first-time investor, a seasoned investor, or an interstate property investor, Investmate is a trustworthy buyer agent having proven expertise you can rely on. Book a free consultation call or call 61421942049 or email: [email protected].