Top 10 best suburbs in regional Victoria to invest in 2026
From the Murray River to the Great Ocean Road, regional Victoria is littered with natural beauty, historic townships, and modern industrial hubs. So, where should a hopeful investor start their search when seeking the best suburbs to buy property in regional Victoria?
Well, the ‘best’ suburb will vary based on your budget, strategy, and risk tolerance, and various investors have various opinions on what positions a suburb among the ‘best’ in its class. One might consider vacancy rates the deciding factor, while another would look at local economic growth, or buyer demand.
For our purposes, we’ve considered Cotality data highlighting suburbs boasting the largest annual growth in median property values from mid-2025 to mid-2026:
Rank | Suburb | Median value | Annual change |
|---|---|---|---|
1 | Nhill | $299,254 | +28.7% |
2 | Dimboola | $322,396 | +21.2% |
3 | Morwell | $436,671 | +20.5% |
4 | Churchill | $477,643 | +20.0% |
5 | Rushworth | $368,106 | +19.9% |
6 | Rochester | $458,035 | +17.5% |
7 | Bagshot | $664,656 | +17.0% |
8 | Moe | $448,881 | +16.5% |
9 | Eildon | $442,260 | +16.4% |
10 | Sebastopol | $515,286 | +16.1% |
Source: Cotality, July 2026.
Buyer demand in regional Victoria
According to RealEstate.com.au, buyer demand in the following regional suburbs has grown year-on-year:
Suburb | Demand growth |
|---|---|
Sebastopol | +217% |
Wenduree | +167% |
Whittington | +151% |
Delacombe | +144% |
Yarram | +131% |
Nyora | +130% |
Black Hill | +118% |
East Bendigo | +117% |
Yallourn North | +113% |
Horsham | +110% |
Source: PropTrack, August 2026. Buyer demand is measured by key enquiry numbers per property listing in a suburb.
What do you need to know about the regional Victorian property market in 2026?
Data from Cotality shows dwelling values in regional Victoria are up 6.3% year-on-year, as of July. However, growth slowed in the second half of 2026, dropping 0.3% from June to July and 0.4% between the May and July quarters.
Cotality lists median dwelling values across regional Victoria in August 2026 as:
- Houses: $672,288
- Units: $458,79
- Combined: $639,857
If you’re looking at property outside greater Melbourne, consider the following:
- Vacancy rates: According to the Real Estate Institute of Victoria (REIV), regional rental vacancy rates are at 2.4% as of June 2026 – slightly lower than metro Melbourne’s 2.7%.
- Sales volumes: Cotality reports that regional Victoria has seen an increase in sales volume, rising 25.1% in the 12 months to June 2026.
- Rental growth: Victorian rents outside of Melbourne have grown by 4% in the 12 months to June 2026 (Cotality).
- Rental yield: Cotality data indicates rental yields in the area are 4.2% as of July 2026. REIV lists that houses command a median $525 a week in rent in regional Victorian towns.
- Infrastructure spending: Many key regional Victorian cities have experienced some impact from infrastructure projects, but not necessarily at the level of other Australian markets. The cancellation of the 2026 Commonwealth Games has impacted this significantly.
What is impacting price growth in regional Victoria?
Despite the recent downturn (the median dwelling value in regional Victoria slipped 0.1% between May and June, Cotality data shows), many investors may remain keen to buy in the state. However, alongside cost of living pressures and increasing core inflation, factors contributing to the mid-year slowdown include:
- RBA cash rate hikes: Multiple rate hikes have raised the cash rate in 2026, leading to increased home loan rates.
- Proposed changes to negative gearing and CGT: This year’s Federal Budget attempted to drive investors towards new builds over existing properties, and may have contributed to the recent cooling off in sales.
What to consider when buying property in regional Victoria
As of 2026, around 25% of Victorians live outside the greater Melbourne area. Increased out-of-city migration due to lifestyle and affordability reasons will likely continue, with the Victorian Government predicting the regional population will boom to 2.2 million by 2051.
The Department of Transport and Planning (DTP) has set a 30-year housing target for regional suburbs and towns, proposing a total of 525,700 new dwellings in 48 Local Government Areas.
In addition to price and demand trends, consider the following when you’re researching property in regional Victoria.
- Utility costs: Water supply, sewerage and waste collection, electricity and gas suppliers and mobile and broadband coverage.
- Flood and fire risk: Natural disaster risks and management may be important in rural and regional areas.
- Local amenities: Access to healthcare, education, shopping and other services.
- Economic diversity: The impact of the region’s biggest employers and industries on the local economy.
