AUSTRALIA’S LIFESTYLE MARKETS SHIFT AS BUYERS CHASE AFFORDABILITY

Lifestyle property hotspots are reshuffling as buyers look beyond premium coastal names to cheaper regional options, according to the 2025 Ray White Regional Report.

Lifestyle markets are defined as regional areas where buyers prioritise scenery, recreation and quality of life over purely economic drivers.

The report finds that New South Wales and Victoria still draw the most demand, thanks to their proximity to Sydney and Melbourne, but momentum is tilting toward more affordable destinations.

Other states are benefiting as price growth prompts buyers to expand their search.

Regional NSW was an early beneficiary of Sydney’s affordability squeeze. From 2015 to 2019, lifestyle areas rose by between 15 and 28 per cent, with Bangalow near Byron Bay experiencing a 28 per cent increase.

That cohort has since cooled. Bangalow now shows 4.6 per cent post-pandemic growth, with Byron Bay and the Southern Highlands following a similar pattern as prices deter some buyers.

More accessible areas are strengthening, including the Central Coast and Blue Mountains, while Port Macquarie, Coffs Harbour and the Hunter Valley offer lower entry points.

Victoria posted even stronger pre-pandemic gains, ranging from 16 to 41 per cent, as Melbourne buyers sought alternatives.

Growth has since flattened across much of the state from 2023 to 2025. The Grampians, Victoria’s most affordable lifestyle market, now leads recent growth after a quiet pre-pandemic period.

Premium coastal pockets, such as Lorne, the Mornington Peninsula, and the Otways, have slowed to 0–4 per cent. Bright–Mount Beauty stands out as an exception, maintaining solid performance through all periods.

In Queensland, established destinations are moderating, while emerging regions are accelerating.

The Gold Coast, at $ 1.29 million, and the Sunshine Coast, at $ 1.22 million, recorded pre-pandemic growth of 12 and 15 per cent, respectively.

They surged around 57–58 per cent through the pandemic and have since settled at 22–26 per cent growth.

Port Douglas shows a similar arc, with 50 per cent pandemic gains easing to 24 per cent recently. Airlie–Whitsundays and Mission Beach are now in focus, posting 37–39 per cent post-pandemic growth at approximate medians of $ 857,000 and $ 523,000.

Western Australia’s lifestyle markets behaved differently, mirroring the cycles of commodity prices. Augusta–Margaret River–Busselton fell 4.3 per cent from 2015 to 2019,

Denmark, at 1.9 per cent, and Albany, at 7.0 per cent, during the mining downturn. All three then jumped 30–39 per cent through the pandemic and accelerated again afterwards.

Between 2023 and 2025, Albany increased by 47.9 per cent, Augusta–Margaret River–Busselton by 43 per cent, and Denmark by 41 per cent. Augusta–

Margaret River–Busselton leads in value at $ 987,000, with Denmark at $ 795,000 and Albany at $ 704,000.

South Australia recorded modest pre-pandemic growth of approximately 5–7 per cent, with the Clare Valley experiencing a 1 per cent decline. Gains accelerated by 31–50 per cent during the pandemic and have continued, mainly supported by spillover from the east.

Victor Harbour leads the way in price at $ 759,000 and has seen a recent growth of 31 per cent.

Wine regions, such as the Barossa Valley at $ 668,000 and the Clare Valley at $ 531,000, have each risen by about 46 per cent recently.

Kangaroo Island remains the most affordable at $ 488,000, with a 28 per cent recent growth.

Alice Springs, at $ 503,000, and Katherine, at $ 357,000, declined before the pandemic, recovered about 14–15 per cent during it, and have since softened.

Alice Springs has been down 0.1 per cent recently, while Katherine has been up 4 per cent. Distance, climate and crime are cited as barriers to wider lifestyle migration despite the NT’s distinctive landscapes and culture.

Tasmania exhibits substantial five-year gains, accompanied by mixed short-term trends. Break O’Day is up 60.2 per cent over five years to 513,000 dollars and has added 2.5 per cent recently.

Launceston, at 556,000 dollars, combines 58.9 per cent five-year growth with 3.9 per cent recent gains.

Some premium areas are cooling: Glamorgan–Spring Bay rose 64.6 per cent over five years to $ 650,000 but fell 6.5 per cent in the past year, while Huon Valley, at $ 620,000, is down 6.9 per cent after a 41 per cent five-year rise.

Kingborough, the priciest at 810,000 dollars, shows a modest recent decline.

Bottom line: The pandemic lifted almost all lifestyle regions, but the next phase is diverging. In the east, affordability is dictating the winners, while in WA, the resource rebound is fuelling outsized gains.

SA is emerging as a value play, the NT remains niche, and Tasmania is splitting between accessible and premium pockets. The findings are drawn from Ray White’s analysis of regional markets for 2025.