Regional NSW markets have topped the chart for statewide sales in the first quarter of this year, as buyers widen their search amid interest rate rises and other economic pressures.

New data showed that three regional NSW markets have emerged as the top locations for statewide sales in early 2026.

InfoTrack’s latest Property Market Update, which analysed the suburbs with the highest sales volumes, showed Port Macquarie, Dubbo, and Orange have come out on top of the NSW property market.

Overall, the data found that median property prices rose 7.94 per cent in the first quarter, intensifying price pressures and influencing where and what Australians are buying.

InfoTrack’s chief operating officer, Lee Bailie, said the trend showed a shift towards regional living, amid a clear decentralisation of demand across the state.

“Regional locations are not just participating – they are leading the market,” Bailie said.

He noted that Port Macquarie has risen to number one after holding third place for the previous two quarters, showing the growing appeal of locations that offered lifestyle alongside value.

“It’s a trend we’ve seen building over several quarters,” he said.

Dubbo remained in second place, with Orange in third for the first time, and Armidale coming in at 10th place for the first time.

Elsewhere, Western Sydney growth corridors have also been consistently popular, including Austral in the south-west, and Box Hill, Rouse Hill, and Castle Hill in the north-west.

Bailie said the areas remained key hubs for buyers, with demand kept strong by established infrastructure, connectivity, and relative value.

In addition, the data showed that first home buyers remained a major driver of activity in both regional and outer-metro markets.

“First home buyers are highly value-driven. They’re looking for locations that are affordable, family-friendly, and close to schools, transport and essential services,” Bailie said.

When it came to first home buyer sales, Dubbo ranked third alongside Port Macquarie, while Orange ranked fifth.

Bailie said lower entry points in those areas gave first home buyers access to government grants and stamp duty concessions, especially for new builds.

Ultimately, InfoTrack said the market was adjusting to ongoing economic pressures, with buyers widening their search across both location and property while considering interest rates.

“Buyers are weighing costs and opportunities carefully, which is driving demand in regional markets, outer-metro growth corridors, and well-priced entry points,” Bailie said.

“These trends are shaping the New South Wales property market early in 2026.”

This article was first published on Smart Property Investment, a sister-brand of Property Buzz.