Westpac data: nearly half of top home lending growth outside capital cities
New lending data from Westpac has revealed the top growth areas for homeowners across Australia, with nearly half of the top 30 booming areas located in the regions. This trend underscores an appetite for regional living driven by a combination of affordability and lifestyle appeal, and, in some cases, more specific economic drivers like infrastructure investment.
"Australians recognise the value and lifestyle benefits of regional living," said James Hutton, Managing Director of Mortgages at Westpac.
"Whether it's the coast, the hinterland, or vibrant regional centres, these areas are experiencing strong growth as buyers seek space, affordability, and a sense of community. These aren't just homes - they are lifestyle decisions."
The data highlights that regional areas such as Lake Macquarie in New South Wales and Bundaberg in Queensland are attracting buyers with their blend of natural beauty and affordability. In Victoria, Wangaratta and Benalla are emerging as appealing alternatives to Melbourne's inner suburbs, offering a quieter pace of life without compromising access to essential services.
"We're seeing a diverse mix of growth across the country. In Queensland, demand is surging in regional areas like Bundaberg and Townsville, fuelled by recent infrastructure upgrades such as the Bundaberg Port expansion and North Queensland Stadium. Meanwhile, inner Melbourne areas like Glen Eira and Yarra continue to perform strongly, while regional Victorian centres such as Wangaratta are gaining momentum," added Hutton.
"In South Australia, coastal suburbs like Port Adelaide West and Holdfast Bay are drawing buyers, while in Western Australia, growth is split between high-value suburbs like Leederville and emerging regional areas such the mid-west, the latter buoyed by the performance of Australia's iron ore, and gold industries. It's a clear sign that Australians are exploring a broad range of options when it comes to home ownership."
Capital city suburbs remain in demand, particularly those benefiting from major infrastructure upgrades. North Sydney and Canterbury in New South Wales, and Glen Eira and Boroondara in Victoria are all experiencing heightened interest, supported by improved transport links such as Sydney Metro and Melbourne's Metro Tunnel.
Meanwhile in Brisbane, a demand belt approximately 50 kilometres from the CBD arcs from the north to the southwest - anchored by Caboolture, Ipswich and Jimboomba.
Westpac's latest Home Ownership Report supports this trend, revealing that 56% of Australians planning to buy or rent their next home are targeting capital cities - up from 52% in 2024.
"But knowing where to buy - whether it's your first or next home, or an investment - can feel like a big decision," added Hutton. "Our home lending team and online tools are here to help you feel more confident about your next purchase."
The regional vs metro trend is also reflected in pricing growth nationally, according to Westpac economist Matthew Hassan.
"Regional Australia continues to outperform, with prices rising 5.9 per cent over the past year compared to three per cent across capital cities," said Mr Hassan. "More strikingly, since 2019, regional property values have surged 65 per cent - outpacing capitals by nearly 25 per cent - highlighting a trend that has proven more enduring than initially expected."
- For property investors: Explore the Property Investment Hub for insights on rental yields, suburb trends, and strategies to grow your portfolio with confidence.
- For owner-occupiers: Use Westpac's Compare rates and loan features tool to find a home loan that suits your lifestyle, with flexible options and competitive rates.
- For first-time buyers: Visit the First Home Buyers Hub for step-by-step guidance, helpful calculators, and expert tips to make your first purchase feel less daunting.
