Regional towns across New South Wales are off to a strong start in 2025, with several key areas such as Bathurst, Dubbo, and Wagga Wagga reporting impressive activity, in line with CoreLogic's recent data showing regional dwelling values rising in January[i].

In Bathurst, Raine & Horne Bathurst has seen a significant surge in property transactions in the city, the commercial hub for the Central Tablelands of NSW. The office exchanged three times as many properties in January compared to the same month in 2024 and twice as many as in January 2023. Just five days into February, Raine & Horne Bathurst had already matched its January sales figures.

Ms Michelle Mackay, Co-principal of Raine & Horne Bathurst, attributes the strong start to a combination of factors, including impending interest rate cuts and robust buyer demand.

“We’ve sold properties ranging from $482,000 to $2.1 million, catering to both investors and owner-occupiers. However, we are seeing more owner-occupiers in the market than investors,” Ms Mackay said. 

“Interestingly, we are seeing quite a few rental properties coming to market, many selling due to the cost-of-living pressures. One of our January sales, 438 Howick Street, Bathurst was bought by an investor from Sydney for $482,000. This property is now achieving a weekly rent of $460, representing a gross yield of just under 5%,” Ms Mackay added.

The increase in buyer activity is attributed to the expectation of interest rate cuts by the Reserve Bank. “People are jumping in now before possible rate reductions, and we’re hopeful this trend will continue throughout the year,” Ms Mackay said. 

“There are many buyers from Bathurst, but we are also seeing around 50% of buyers coming from Sydney, drawn by the capital city’s housing affordability challenges.”

Charles Sturt University is also playing a role in the market, with some parents purchasing properties for their children to live in during their studies. “We’ve seen a rise in this trend, especially in December and January, with parents looking to secure properties for their children before they start in February or March,” Ms Mackay noted.

Rental demand remains strong in the region, with vacancy rates consistently under 1%. “Anything that comes up for rent goes very quickly, and with gross yields around 5%, it’s a great time for investors to consider the Bathurst market,” Ms Mackay added.

Dubbo's enjoys early 2025 boom with increased sales, listings, and investor confidence

The property market in Dubbo Northwestern NSW, is off to an exceptional start in 2025, according to Mr Ken Mongan, Managing Director, Raine & Horne Dubbo.

The market has been very strong,” Mr Mongan said, noting that despite the traditionally quieter January and February months, the local property market has maintained its momentum from late 2024.

“Sales in January were up by 20%, and listings and appraisals also saw a 20% increase,” Mr Mongan added. “This is a strong indicator that confidence in the market is high, and we’re seeing more people actively looking to make moves.”

Mr Mongan attributes the market’s strength to several factors, including the belief that interest rates have hit their ceiling. “From talking to the public, it seems everyone thinks we’ve hit our peak, and from here on, it’s all good news,” he explained.

“People feel that if they can afford what they can now, they’ll get a bit of breathing room from the RBA in the next two to three years, which is encouraging many to make their move now.” 

First-time homebuyers are also re-entering the market, with support from parents helping to make it possible. “We’re definitely seeing a lot of first-time buyers come back, with mums and dads playing a big role in assisting them,” Mr Mongan said.

On the demand side, Mr Mongan reports a strong interest from both local buyers and those from larger cities. “The split is about 70:30 between locals and buyers from the capital cities,” he said.

“Investors are also flocking to Dubbo for strong returns, with many looking to secure 5.2-5.5% gross returns on residential properties, while our occupancy rates of 98% also underlines the reliability of the Dubbo investment market.”

The property market in Wagga Wagga, a major regional city in southwestern NSW, has seen a strong start to 2025, with significant sales activity driven by interest from Sydney and Melbourne buyers and buyers’ agents.

Wagga market soars driven by Sydney and Melbourne buyers and major local infrastructure investments

Mr Grant Harris, Co-Principal of Raine & Horne Wagga Wagga, commented on the robust demand. “We’re getting hammered with enquiries from Sydney and Melbourne investors, along with many buyers’ agencies, Mr Harris said. 

“The sweet spot is properties under $600,000, and we’re seeing high levels of interest in homes such as 60 Balleroo Crescent in Glenfield Park[ii], which listed in early February at $445,000 and has already received an offer for over $20,000 above this price. We had 40 enquiries and 15 inspections within a few days – that’s exceptional for us.”

Mr Harris explains that the surge in buyer interest is linked to growing confidence in Wagga Wagga’s future. “There’s a lot of government investment about to pour into the city,” he said.

“There is the $4.8.5 billion HumeLink project[iii] which will bring power from the Snowy Mountains to Wagga, which will be huge for the local economy. This project will create 1,600 construction jobs and is expected to drive $6.3 billion of direct and indirect investment into the regional economy. 

“Defence is also major industry for Wagga, and with the upgrades to the Australian Army’s Blamey Barracks at Kapooka and RAAF Base Wagga at Forest Hill, worth $1.2 billion, we are expecting a significant boost in the number of workers coming to the town.”

Mr Harris also highlights the expected shortage of accommodation. “There’s a prediction that we will be 2,000 beds short by the end of the year, and an interest rate cut would be the cherry on top for boosting local market confidence even further.”

[i] https://www.corelogic.com.au/news-research/news/2025/national-home-values-hold-steady-as-regional-australia-pushes-to-new-record-highs

[ii] https://www.raineandhorne.com.au/waggawagga/properties/60-balleroo-crescent-glenfield-park-2650-new-south-wales

[iii] HumeLink transmission project receives tick of approval | Planning