Regional Property Markets Outperform Capitals — How Non-Standard Borrowers Can Enter the Market

Regional Property Markets Outperform Capitals — How Non-Standard Borrowers Can Enter the Market

CoreLogic's latest research confirms a significant trend: regional property markets across Australia are outperforming the major capitals, driven by sustained internal migration as buyers and renters seek affordability away from Sydney and Melbourne.

Key Findings from CoreLogic's May 2026 Data

According to CoreLogic's regional market analysis, several areas — including coastal Queensland, regional Victoria, and parts of Western Australia — are recording stronger value growth than the combined capital city index, which is being dragged down by declines in Sydney and Melbourne.

Internal migration from major capitals to regional areas has accelerated, fuelled by remote work flexibility and the dramatic gap in property prices. Median house prices in many regional centres remain $200,000–$400,000 below equivalent capital city properties.

What This Means for Buyers Seeking Finance

For buyers considering regional property, financing options are often broader than for inner-city purchases. Non-bank lenders like MPFG Capital can assess applications differently from the major banks, particularly for:

• Self-employed buyers who may not have standard payslips but operate businesses in regional areas
• Small business owners and primary producers whose income documentation falls outside traditional bank criteria
• New migrants and PR holders looking to enter regional markets as their first Australian property purchase

Alt Doc Loans for Regional Property Buyers

Many self-employed Australians considering a regional property move face the same documentation challenges regardless of location. An Alt Doc loan from MPFG allows income verification through BAS statements, accountant letters, or business bank statements — instead of traditional payslips or PAYG tax returns.

This is particularly relevant for small business owners relocating their business to a regional area, or tradies and contractors whose income is real but doesn't fit standard bank templates.

Should You Buy Regional in 2026?

CoreLogic's data suggests regional markets still offer relative value compared to capitals. Buyers should consider:

1. Local employment markets and infrastructure
2. Rental demand if purchasing as an investment
3. Long-term population growth forecasts for the area
4. Liquidity risk — regional properties can take longer to sell

Non-bank lenders assess each case individually, which means a self-employed buyer rejected by a major bank may still qualify for financing on a regional property.

Frequently Asked Questions

Can I use an Alt Doc loan to buy a regional property?

Yes. Alt Doc loans are available for properties outside capital cities. MPFG Capital assesses regional property applications on a case-by-case basis.

What LVR is available for regional properties?

Non-bank lenders typically offer up to 80% LVR for regional residential properties, depending on the specific location and property type.

Do I need a bigger deposit for a regional property?

Not necessarily. The deposit requirements depend on the specific lender and property location. Some regional postcodes are treated the same as metropolitan areas.

This article is general information only and does not constitute financial or lending advice. Individual circumstances vary. Contact MPFG Capital for a personalised assessment.