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Summer 25/26
Regional New South Wales
Residential
Residential sales Update
Residential annual rolling sale transactions tallied to 47,750 in the third quarter of 2025 in Regional NSW, down 4% from the previous quarter and 5% lower than a year ago This was shaped by restrictive lending conditions and an overall lower number of properties listed for sale on the market. As a benchmark, over the past five years, the annual average was 51,520 sales.
Share of state annual sales
Regional NSW made up 34% of the total number of annual residential sales recorded in NSW at the end of Q3 2025. This was higher than one year ago when the proportion was 30%, and remains above the 32% share recorded five years ago The change in residential sales activity over the past year saw Regional NSW (-5%) outpace Greater Sydney (-22%)
Tracking the total number of sales each year
Regional NSW
Regional NSW, Q3/25
from a year ago
Share of state annual sales, by number
Regional NSW
Duration +6 days
Regional NSW residential homes averaged 100 days on market in the year ending Q3 2025, from the time they were listed to the day they went under contract This duration was 98 days a quarter ago (+2 days) and 94 days a year ago (+6 days) A lower number of days on market tends to mean homes are selling faster with more desirable properties, while a higher number of days suggests a slower market with above market values. Looking back over the five-year average, it has taken 94 days to sell a home
Tracking average days on the market
Regional NSW
Newly advertised property listings in Regional NSW were 9.8% lower in the month of September 2025, than the equivalent period last year, as reported by Cotality This change trended below the -8.5% for the combined regional areas of Australia but above -10 3% across Australia
Regional NSW’s total number of listings in the month of September 2025 were 13.3% below the equivalent period last year, according to Cotality By comparison, the total listings change were -12.9% across the combined regional areas of Australia and -13 3% Australian-wide
Tracking average prices Regional NSW Average price $810,000
Residential property prices across Regional NSW rose by 2 9% in the year ending Q3 2025, with a 1 1% increase recorded in the most recent quarter This brought the average residential value to $810,000, reflecting a steady upward trajectory in housing demand whilst the total number of listings remain lowered Annual residential price growth has averaged 9.2% over the past five years.
Forecast for average prices Regional NSW Price outlook
Looking ahead, McGrath Research anticipates Regional NSW residential property prices to increase by 6% by the end of 2025, followed by a further 5% rise in 2026. Factors taken into consideration include the low number of new listings, the downward trajectory of sales transactions and the longer average time being taken to sell a home
Residential rents Update
Regional NSW residential rental vacancy was recorded at 1 6% in Q3 2025, rising 3 bps in the quarter and in total, 11 bps higher over the past year Generally, 3% vacancy is considered a balanced market between rental supply and demand Below this benchmark is considered to be an undersupplied pool of rental homes. Over the past five years, rental vacancy has also averaged 1 6% per year
Tracking residential rental vacancy
Regional NSW
Yield
+6 bps
Residential gross rental yields rose 1 bp in Q3 2025 to be 4 35% across Regional NSW, whilst being 6 bps more than one year ago. Gross rental yields are a good initial measure of comparing the return of a property investment before expenses are deducted. Investment properties with a yield greater than 5% tends to be most desirable for properties located in regional areas, while below this, tends to indicate high property prices relative to rent, or low rental demand Gross rental yields have averaged 4 33% over the past five years.
Tracking gross rental yield
Regional NSW
Residential rents Update
Average weekly rent $600
Regional NSW residential rents rose 0.8% in Q3 2025, while increasing 6 2% over the past year, to stand at $600 per week Low vacancy and population growth have kept rents elevated, albeit now rising at a slower pace than previous years On average, over the past five years, rents grew 7 4% per year.
Tracking average weekly rents
Regional NSW
Regional NSW Rental outlook +5%
Forecast for average rents
Whilst the completion of new builds remains low across Regional NSW, there remains an undersupply of new homes being added to the rental pool while the population continues to climb As a result, McGrath Research forecast sustained upward pressure on rents of 5% at the end of 2025, with a further 5% rental growth likely in 2026
Regional NSW
Regional New South Wales (NSW) refers to the area outside of ‘Greater Sydney’ or ‘Rest of State’ for NSW as defined by the Australian Bureau of Statistics.
Guiding you home
Michelle Ciesielski National Head of Research, McGrath Research
www.mcgrath.com.au/research
