A recent report from Domain has examined property prices across the country. Photo: Michelle Kroll.
Canberra’s commuter base might be expanding even more as people search for affordability – and that search is driving strong property prices in nearby towns.
A recent report from Domain examining property prices has found that some local government areas (LGA) in south-east NSW are outperforming the bush capital.
Domain’s chief of research and economics Doctor Nicola Powell told Region the markets were being influenced by the 2025 rate cuts, which affected buyers’ confidence and their capacity to borrow.
She said Yass came in as the third strongest LGA across regional NSW, reporting an annual growth in median house prices of 20.9 per cent (and a 31.1 per cent increase over five years).
“Yass has probably been the star performer, and I think the strength of that market probably has an element of surprise.
Dr Powell believes this is being influenced by the town’s location – placed “firmly in that Canberra commuter belt” – lower property costs and the limited housing supply in the ACT.
“Buyers priced out of Canberra houses are moving just over the NSW border. … That affordability gap keeps demand resilient.”
For comparison, Canberra recorded a 6.1 per cent increase in house prices over the same period, while units fell -1.4 per cent.
“We’ve got to remember that Canberra is a very high-priced market, and that does have an impact on outward flows to other connected local communities,” she said.
Dr Powell said the Queanbeyan region was recording strong property growth.
“We’ve had the expansion of the First Home Guarantee Scheme … which would be benefiting some of these regional locations – particularly within that commuter belt, because it is helping to support buyer demand.
“We know that first home buyers need affordability. They’re looking to those more affordable locations.”
It’s a situation where buyers are heading to Queanbeyan in search of “greater value or a larger block of land” for their money.
Domain’s report states that Queanbeyan saw a 6.2 per cent increase to have a median house price of $777,000.
Over the same period, Googong saw a 3.3 per cent increase in house prices (to $1,080,000 price), while Jerrabomberra saw a drop of 3.5 per cent to a median of $1,100,000.
Doctor Nicola Powell says Eurobodalla and Bega Valley are still attractive markets in which to purchase property, but demand isn’t at levels seen during the COVID peak. Photo: Kim Treasure.
Dr Powell said growth in coastal communities indicated buyers were still seeking a lifestyle change.
“What we’ve seen is much more sluggish conditions and a bit more normalisation of growth cycles, following an unusual period [and] strong rates of growth.”
She said the results came as south-east NSW markets saw signs of “more moderate” prices.
According to the available data, Bega has seen a 6.6 per cent increase in median house prices, meaning people are paying about $852,500 (as of December 2025), compared to $800,000 the December prior.
Nearby Eurobodalla Shire is seeing smaller growth, with that being attributed to retirees and downsizers relocating to the area, as well as people looking to buy a holiday home.
Domain found that the region saw 2.5 per cent growth.
In comparison, Dr Powell pointed to the five-year change of 40.3 per cent, which saw the median 2020 price increasing from $590,000 to $827,500.
“That’s a big jump in price – and particularly a big jump in price if you are local within the area and are trying to purchase.
“If you rewind just a few years ago, we see extreme rates of price growth hitting some of these lifestyle sea- and tree-change locations – and Eurobodalla is obviously that sea-change location.
“I think we don’t tend to find in these locations (particularly Eurobodalla) that extreme rates of price growth, like we saw during the pandemic. … I think it’s just a normalisation of migration patterns that’s helping to normalise that price cycle in Eurobodalla.”
Dr Powell said the Snowy Monaro was another area where buyers were often seeking a lifestyle change.
The report found the region posted an annual growth of 8.9 per cent in its median house price, which came in at $640,000.
“Snowy [Monaro] can be quite seasonal in its impacts, given it is a seasonal market. … I do think that really captured that lifestyle change that we saw occur as a result of COVID,” she said of their long-term findings.
Domain’s House Price Report is released quarterly and can be found on its website.
