Top 10 best towns in regional NSW to invest in 2026
New South Wales provides a large variety of options for home buyers and investors. It includes some of the nation’s largest regional cities, a range of strong inland regional centres, and hill change areas.
The ‘best’ suburb to buy property in regional NSW will vary based on your budget, strategy, and risk tolerance. 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 | Coolah | $372,361 | +36.4% |
2 | Trangie | $291,199 | +35.8% |
3 | Mount Austin | $612,427 | +29.7% |
4 | Kootingal | $622,689 | +29.7% |
5 | Tolland | $622,051 | +27.5% |
6 | Turvey Park | $688,608 | +27.3% |
7 | Forest Hill | $622,361 | +25.0% |
8 | Narromine | $490,648 | +24.8% |
9 | Deepwater | $364,273 | +24.2% |
10 | Walcha | $504,154 | +23.9% |
Source: Cotality, July 2026.
Buyer demand in regional NSW
According to RealEstate.com.au, buyer demand in the following regional suburbs has grown year-on-year:
Suburb | Demand growth |
Glenfield Park | +139% |
Dubbo | +124% |
Westdale | +117% |
Singleton | +115% |
Windradyne | +110% |
Llanarth | +110% |
Cowra | +109% |
Narrandera | +107% |
Estella | +107% |
Forest Hill | +107% |
Source: PropTrack. Buyer demand is measured by key enquiry numbers per property listing in a suburb.
What do you need to know about the regional NSW property market in 2026?
According to July insights from Cotality, dwelling values in regional NSW are up 6.8% year-on-year. However, growth has slowed in the second half of 2026, down -0.4% from June to July and -0.9% from May to July quarter.
Median dwelling values across regional NSW as of August 2026, according to Cotality, are:
- Houses: $867,868
- Units: $688,439
- Combined: $836,911
If you’re looking at property outside Sydney, consider the following:
- Vacancy rates: According to SQM Research, regional rental vacancy rates sit around 1.3% to 1.4% as of June 2026. That’s slightly lower than Sydney’s 1.6%.
- Sales volumes: Cotality reports that regional NSW has seen an increase in sales volume, lifting 12.3% in the 12 months to June 2026.
- Rental growth: Rents in regional NSW are also trending upwards, growing 5.4% in the 12 months to June 2026 (Cotality).
- Rental yields: Cotality data indicates that rental yields in the area are 4% as of July 2026. Domain’s July Rent Report cites a median weekly rent for a house in regional NSW is $650.
- Infrastructure spending: The NSW Government has committed $116.7 billion to state infrastructure over the next four years, earmarking funds for the likes of health, education, roads, tourism, and water projects in regional areas. One notable project is the $31 billion Inland Rail Link, which will connect Melbourne and Brisbane via a fast rail line through regional NSW.
What is impacting price growth in regional NSW?
With capital city prices skyrocketing long-term, investors appear keen to buy up outside of Sydney. However, alongside cost of living pressures and increasing core inflation, factors contributing to a mid-year slowdown include:
- RBA cash rate hikes: Multiple rate hikes have raised the cash rate, leading to increased home loan rates for both owner-occupiers and investors.
- Proposed changes to negative gearing and CGT: This year’s Federal Budget attempted to drive investors towards new builds over existing properties, which may have contributed to the recent cooling off in sales.
What to consider when buying property in regional NSW
As of 2026, around one-third of New South Wales residents live outside greater Sydney. Increased out-of-city migration due to lifestyle and affordability reasons will likely continue, with the NSW Government predicting the regional population will boom to 3.8 million by 2041.
The National Housing Accord has set a five-year housing target of 377,000 new dwellings in NSW by 2029, distributed in areas where the population is expected to grow.
In addition to price and demand trends, consider the following when you’re researching property in regional NSW.
- 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.
