Regional vs. Metropolitan Markets in Victoria: The Shift in Buyer Interest and Where to Watch

Over the past few years, Victoria’s property market has undergone a quiet revolution. While Melbourne has long been the heartbeat of the state’s housing activity, there’s been a notable shift in buyer interest toward regional towns and cities — driven largely by affordability, lifestyle, and flexible work arrangements.

Buyers are waking up to the fact that you no longer need to be in the thick of the city to enjoy a great quality of life or achieve solid capital growth. Regional Victoria is stepping into the spotlight — and savvy investors and homebuyers are taking notice.

While Melbourne’s median house price hovers around the million-dollar mark, many regional centres offer spacious homes for a fraction of that.

Why Regional Victoria?

Affordability remains the key driver. While Melbourne’s median house price hovers around the million-dollar mark, many regional centres offer spacious homes for a fraction of that. This has become increasingly attractive to first-home buyers, families and even investors chasing better rental yields.

The work-from-home revolution has also played a major part. Since the pandemic, more Victorians are free to work remotely, opening up the possibility of living in places once seen as too far from Melbourne to be practical. Now, access to good internet and a train line can be more important than proximity to an office tower.

Lifestyle appeal is another drawcard. Many regional towns boast tree-lined streets, heritage charm, and access to nature — with less traffic, lower crime, and stronger community ties.

Regional Victorian Hotspots to Watch

Several regional areas have surged in demand and are tipped to perform strongly over the coming years. Here are a few standout locations:

1. Ballarat

Arguably the biggest regional success story in Victoria, Ballarat continues to attract buyers priced out of Melbourne. It’s just over an hour by train, has a booming local economy, excellent schools, and a mix of period and modern homes. Median house prices remain well below Melbourne’s, offering strong growth potential.

2. Bendigo

Bendigo is more than just gold rush history. It’s fast becoming a cultural and economic hub, with strong employment in health, education, and government. With quality infrastructure and a growing café culture, it’s especially popular with young families and retirees.

3. Geelong

Technically a regional city, Geelong feels increasingly like a metropolitan alternative. With easy access to Melbourne via the freeway or V/Line, Geelong is attracting commuters, investors, and sea-changers alike. Areas like Newtown, Belmont and East Geelong are in particularly high demand.

4. Castlemaine and Daylesford

For those chasing a slower pace and a creative, community-driven lifestyle, Castlemaine and Daylesford are highly sought after. These towns appeal to tree-changers and remote workers, offering character homes, vibrant local scenes, and proximity to nature.

5. Warragul and Drouin (Gippsland corridor)

Only about 100km south-east of Melbourne, these twin towns offer excellent value and are growing rapidly. With upgraded rail links and affordable housing, they’re becoming popular for young families and first-home buyers.

Is Melbourne Still a Good Bet?

Yes — Melbourne still offers opportunity, particularly for buyers who take a strategic, suburb-by-suburb approach. Inner-city apartments and some previously overheated suburbs have corrected, presenting openings for long-term buyers. However, competition and prices remain high in family-friendly middle-ring suburbs and those close to good schools or transport.

A Balanced View

There’s no one-size-fits-all answer when it comes to choosing between regional and metropolitan markets. It depends on your goals, lifestyle needs, and budget. But for many, regional Victoria now ticks the right boxes — affordability, growth potential, lifestyle, and infrastructure.

At Walsh Brown Property, we specialise in uncovering hidden opportunities — whether it’s a family home in Ballarat, an investment property in Bendigo, or a lifestyle escape in the Macedon Ranges. If you’re thinking of making a move, let’s talk through the options.

Let’s have a chat about your goals, budget, and timeline — and I’ll show you exactly what’s possible, whether you’re eyeing a lifestyle change, investment, or family home in one of Victoria’s emerging regional markets. With the right guidance and local insights, you can make a confident move into a high-potential area before the broader market catches on.

📩 aly@walshbrownproperty.com.au

📞 0411 771 181

🌐 www.walshbrownproperty.com.au

*** Disclaimer: The information provided in this blog is intended for general informational purposes only. While we have made every effort to ensure the accuracy and reliability of the content, it should not be considered as personalised or professional advice. The homebuying process can vary based on individual circumstances, property types, and location-specific regulations.