Regional Property Markets Surge as Sydney and Melbourne Flatline — CoreLogic March 2026

Australia's regional property markets are surging, with growth in areas outside the capital cities now outpacing metropolitan centres — according to CoreLogic's March 2026 Monthly Housing Chart Pack. Meanwhile, within the capitals, performance is sharply divergent: Perth continues to sprint, Brisbane and Adelaide keep climbing, but Sydney and Melbourne have largely flatlined.

The National Picture

CoreLogic's March data paints a bifurcated market:

This pattern reflects a combination of affordability-driven migration away from the two largest capitals, strong interstate population flows, and the continued structural undersupply of regional housing stock.

Why Regional Markets Are Surging

Several factors are driving the regional property surge:

1. Affordability advantage: With median house prices in Sydney exceeding $1.4 million and Melbourne above $900,000, buyers are increasingly looking to regional centres where comparable properties are available at $400,000–$700,000.

2. Remote and hybrid work: The post-pandemic shift to flexible work arrangements has made it viable for more professionals to live in regional cities and commute or work remotely.

3. Population growth in regional hubs: Cities like Geelong, Ballarat, Bendigo, Wollongong, Toowoomba and the Gold Coast are absorbing spillover demand from the major capitals.

4. Infrastructure investment: Federal and state government infrastructure spending in regional areas is improving liveability and driving property demand.

Implications for Property Buyers

For borrowers considering a regional purchase, several loan-related factors are worth noting:

• LVR considerations: Some lenders apply more conservative LVR limits (lower maximum loan-to-value ratios) for regional or non-metro properties. Non-bank lenders may offer more flexible terms depending on the specific location and property type.
• Alt Doc availability: Self-employed buyers relocating to regional areas — including tradespeople, consultants and small business owners — can often access MPFG's Alt Doc loan products even without two years of traditional income documentation.
• Commercial and mixed-use opportunities: Regional property growth is also driving demand for commercial premises. MPFG Capital offers commercial loans suitable for buyers of regional retail, industrial or office properties.

Sydney and Melbourne: Not Out of the Running

While flat growth in Sydney and Melbourne may seem discouraging, these markets have not collapsed. Rather, they are consolidating after significant rate-driven corrections. For buyers with strong deposits and unconventional income profiles, the current plateau in Sydney and Melbourne may represent an entry opportunity.

MPFG Capital's Full Doc and Alt Doc loan products are available for purchases across all Australian capital cities and many regional centres.

CoreLogic Data Summary (March 2026)

Key metrics from CoreLogic's March Housing Chart Pack:

• National home values: Holding broadly stable with positive regional momentum
• Auction clearance rates: Mixed across capitals, stronger in Perth and Adelaide
• Days on market: Shorter in regional areas, reflecting stronger buyer demand
• Vendor discounting: Increasing slightly in Sydney and Melbourne

MPFG's View

Whether you're eyeing a regional property for its affordability, a commercial space in a growing regional hub, or an entry-level purchase in a capital city, MPFG Capital can assess your borrowing position across all property types and locations. Our Alt Doc and commercial lending products are particularly well-suited for self-employed borrowers and investors targeting underserved markets.

General information only. Property market data sourced from CoreLogic March 2026. Not financial or investment advice. MPFG Capital ACL 553698.