6 Fastest Growing Regional Areas for Property Investors in 2026

Australia’s regional markets are in the property investment spotlight due to low vacancy rates, significantly lower property prices compared to capital cities, and consistent property sales growth.

According to Cotality’s Home Value Index (January 2026), regional dwelling values have risen by 9.7%, outperforming the 8.2% growth in dwelling values of combined capital cities over the past 12 months since January 2025. Regional market performance in Queensland and Western Australia stood out with annual increases of 12.6% and 16.1%, respectively.

Here are the fastest-growing regional areas in 2026 based on the latest data.

Data sourced from CoreLogic’s May 2025 Regional Market Update, Real Estate Investar, and the Australian Bureau of Statistics.

Fastest Growing Regional Areas for Property Investment

1. Cairns, QLD

As the largest city in Far North Queensland, Cairns saw a 10.82% increase in median house price over the past year from 2025 to 2026. Cairns' growth is due to its popularity as a holiday spot as well as its rapid development in other industries like education, healthcare, and renewable energy.

Median house price: $764,020 (annual growth of +10.82% since January 2025)

Median weekly rent: $629 (annual growth of +9.36% since January 2025)

Average rental yield: 4.22%

Population: 178,104

Average vacancy rate: 1.12%

Percentage of population living in rental accommodation: 32.5%

2. Townsville, QLD

The City of Townsville is one of the fastest-growing markets across regional QLD. Townsville’s population is projected to increase by over 30% to 264,899 in 2046. However, the regional centre is currently facing a housing shortage, increasing house prices year-on-year to the current median of $713,838 (January 2026).

Median house price: $713,838 (annual growth of +19.86% since January 2025)

Median weekly rent: $531 (annual growth of +7.69% since January 2025)

Average rental yield: 3.86%

Population: 204,541

Average vacancy rate: 1.52%

Percentage of population living in rental accommodation: 32.61% 

3. Gladstone, QLD 

As of January 2026,  Gladstone’s median house price is $733,082, reflecting a 14.09% growth over the past 12 months. With a trend of double digital growth year-on-year, the city continues to attract attention from investors. Strong returns, limited supply, and steady demand shape Gladstone's current property landscape.

Median house price: $733,082 (annual growth of +14.09% since January 2025)

Median weekly rent: $541 (annual growth of +12.88% since January 2025)

Average rental yield: 3.83%

Population: 68,065

Average vacancy rate: 1.45%

Percentage of population living in rental accommodation: 26.74%

4. Mackay, QLD

The median house price in Mackay has risen by 17.16% to $744,302 over the past year. Rental yields are at 4.37%, making it one of the highest performing regional areas in terms of property investment value. With more than one in four residents renting in 2026, demand continues to build, supported by infrastructure investment and a rising trend of new residents migrating to Mackay for the tropical lifestyle.

Median house price: $744,302 (annual growth of +17.16% since January 2025)

Median weekly rent: $626 (annual growth of +7.55% since January 2025)

Average rental yield: 4.37%

Population: 128,361

Average vacancy rate: 1.43%

Percentage of population living in rental accommodation: 26.27%

5. Geraldton, WA

Geraldton’s median house price is $559,941, following a double digit increase of 16.61% since January 2025. With house prices below $600,000, the region offers a low barrier to entry for investors, making it particularly attractive for first time investors. Geraldton’s performance is driven by ongoing high demand from investors and local buyers, despite a shortage of listings.

Median house price: $559,941 (annual growth of +16.61% since January 2025)

Median weekly rent: $402 (annual growth of +0.25% since January 2025)

Average rental yield: 3.73%

Population: 42,322

Average vacancy rate: 1.11%

Percentage of population living in rental accommodation: 25.55%

6. Albany, WA 

Albany’s median house price at the start of January 2026 has surpassed the $1,000,000 mark following a 12-month growth rate of 17.84%. The region’s vacancy rate remains incredibly low at 0.31%, indicating high rental demand from its 38,763 residents. With a budding tourism industry, a strong economy around agriculture, and investments across health, education, and local business, Albany is positioned for future growth.

Median house price: $1,015,468 (annual growth of +17.84% since January 2025)

Median weekly rent: $565 (annual growth of +9.06% since January 2025)

Average rental yield: 2.89%

Population: 38,763

Average vacancy rate: 0.31%

Percentage of population living in rental accommodation: 23.51%

Build your next investment property in Australia’s fastest growing regional areas. Explore Cougar Home’s luxury home designs in Cairns, or house and land packages in Mackay with our investment building arm, Builder Direct.