Aussies shift to regional homes under $500k

Australians are once again chasing value beyond the city limits, with new View.com.au data showing a surge in demand for affordable regional homes through October.

Searches for properties priced under $500,000 dominated the month, making up many of the most-viewed and longest-engaged pages across the site.

Buyers spent more than six minutes per session exploring rural listings in Victoria and Queensland with Daylesford and Maryborough in Victoria coming out as top searches and Warwick in south east Queensland and the Sunshine Coast hinterland proving most popular.

The trend comes as the Federal Government's expanded First Home Buyer Guarantee allows more Australians to purchase with as little as a 5 per cent deposit.

The scheme appears to be drawing younger buyers and solo applicants toward regional and lifestyle markets where house prices remain within reach.

But it's not just first-home buyers driving the momentum.

Investor activity has been climbing steadily, supported by a sharp rise in interest-only lending. The Australian Prudential Regulation Authority (APRA) reports that 20.4 per cent of housing loans are now on interest-only terms, the highest share since 2019.

The uptick has prompted warnings from regulators about the potential risks of "easy credit" fuelling price growth and financial instability. In 2017, similar conditions saw APRA introduce temporary restrictions on interest-only loans to cool investor demand.

Interest-only loans, where borrowers pay off interest for the first five to ten years before repaying the principal, are popular with investors seeking to maximise cash flow and tax deductions.

Should new lending curbs be introduced, analysts warn it could put downward pressure on property prices and moderate investor demand.

Despite those headwinds, View.com.au's data shows many investors are looking beyond the capitals for better returns.

In Queensland, search activity was strongest in Brisbane, the Sunshine Coast, Warwick and Yeppoon, while in Victoria, Ballarat, Bendigo, Wangaratta, Maryborough and Echuca featured among the top-performing regional markets.

Each offers a blend of affordability, infrastructure and solid rental yields.

The findings also reinforce the enduring "tree and sea change" trend, as Australians continue to weigh lifestyle alongside value.

Engagement times were highest on listings tagged as "rural" or "under $500,000", with users spending up to 6 minutes per visit, well above the site average.

Meanwhile, searches for apartments and vacant land held steady, reflecting early-stage interest among both first-home buyers and investors considering new builds.

The data highlights affordability as the defining force shaping the spring property market.

Buyers are clearly doing the maths, whether they are investors or first home buyers and many are realising that a house under $500,000, even if it's an hour or two from a CBD, is a better long-term bet than stretching for a small city apartment.

With new government incentives, strong rental returns and improving regional job prospects, the next wave of homebuyers may be setting their sights well beyond the city skyline.