Country towns in Victoria are rapidly becoming attractive alternatives to Melbourne suburbs. Many buyers are looking for a quieter lifestyle, eager to escape the city’s constant activity. Experts believe these regional areas could continue to thrive as home loan costs decrease and budgets expand.
According to recent data from PropTrack, over 80 regional locations saw their home prices increase by at least 10% between February 2022 and the same time in 2025. In contrast, less than 20 suburbs in metropolitan Melbourne enjoyed similar gains, while 194 actually lost value.
This shift comes in the wake of the Reserve Bank of Australia raising interest rates significantly—from 0.1% in May 2022 to a peak of 4.1%—with a recent pause indicating possible relief for buyers.
Some regional towns like Eagle Point have seen astonishing growth in property values, soaring 63.3%. Other noteworthy areas include Ouyen and Nathalia, both experiencing increases of about 58.5% and 57.9%, respectively. These price hikes are attributable to the increase in demand for lifestyle-oriented living spaces, often located near appealing amenities.
PropTrack senior economist Eleanor Creagh points out that the appeal of regional towns is further bolstered by their affordability. As borrowing capacity for buyers tightens due to interest rate hikes, these more economical areas have become increasingly attractive. Many of these towns are not far from larger urban centers, capturing buyers seeking better value while remaining close to the city.
Among the suburbs that have fared best during this challenging housing market are Wandin North and Research, where property values rose by 20% and 16.6%. Many areas that performed well during this period are considered lifestyle hubs, enhancing their appeal as more people prioritize quality of life.
User feedback via social media often shares appreciation for the slower pace of life in these regions. People express gratitude for larger living spaces and closer connections with nature, reflecting a broader trend away from high-density living.
Real Estate Buyers Agents Association’s Matthew Scaffidi highlights that many are reassessing their life priorities post-pandemic. With lifestyles shifting, buyers are seeking homes that offer tranquility rather than just proximity to work.
Also worth noting is the shift in buyer demographics. Many retirees and older individuals are purchasing homes in scenic areas without relying on loans, fueling demand in these markets.
In the overall context of the Australian housing sector, properties priced below the national average are proving resilient and can draw interest even during economic downturns. It’s worth mentioning that this trend isn’t confined to Victoria. In other states, similar dynamics are emerging with buyers gravitating toward quieter locales rich in natural beauty.
In conclusion, while city living has traditionally held allure, the changing landscape suggests that many are re-evaluating their choices in favor of a more peaceful, enjoyable life in the country. As interest rates stabilize, the resurgence of regional towns may produce more growth, ensuring that these hidden gems continue to bloom.
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