THE inland lifestyle belt stretching from Gloucester to Dungog is finishing 2025 with renewed momentum as city escapees and fresh buyer confidence fuel one of the strongest six-month periods since the initial pandemic spike.
McGrath Gloucester principal Jonny Tighe and Dillon & Sons principal Tavis Chivers say the latest regional data mirrors what’s unfolding across both districts: a market that surged between 2021-23, steadied as interest rates rose, and is now gathering pace again.
A COVID surge, lull, followed by a rebound
Tighe says Gloucester’s 60.8 percent growth since December 2019 reflects the town’s lived experience, but most of the uplift occurred during the height of COVID.
“It certainly is,” he said when asked whether the figures matched what he’s seeing locally.
“Mind you, a lot of that 60 percent growth happened in those initial COVID years. And we actually have seen almost a steadying of that growth the last couple of years.
“But over the past six months, following interest rate cuts, we’ve actually seen it pick up again.”
Chivers added: “There’s definitely been a big increase here since that period since 2019.
“A lot of that would be on the back of supply, which is tight. If you miss out, we haven’t got another one.
“We haven’t got three of the same property ready to go. So I think competition for property is going to continue to keep that sort of value high.”
Strong buyer demand and faster sales
Both agents say demand has strengthened through the final quarter of 2025.
“We’re seeing average days on market pull back a little bit,” Tighe said of Gloucester.
“There’s still a lot of value in regional locations on the back of ever-increasing house prices in the major cities.”
Chivers said scarcity continues to drive competition in Dungog.
“You look at the numbers. There are 8000 to 10,000 people in our shire. There’s 2000 people in the Dungog township,” he said.
“And whether things are good, bad, or in between, there’s mainly only 30-odd houses transacted. So prices remain strong.”
Who’s buying in the inland market?
Tighe said Gloucester’s buyer mix has remained steady.
“We generally see 50–50 between locals and out-of-towners, who are predominantly from Newcastle, Central Coast and Sydney,” he said.
“And the other group is buyers from inland western parts of NSW. These are the larger, broadacre farmers that love the country lifestyle but want to be that little bit closer to the coastal cities.”
Chivers says most Dungog buyers have some kind of connection to the district.
“I feel like we meet buyers, we find out many are from Sydney, then when they get here, we find out they have a family member who lives down the road,” he said.
“I feel like everyone’s got half a connection to the area before they get here.”
Many are also freeing themselves from Sydney debt, he says.
“Quite a few are downsizing their mortgages, selling for $1.5 million in Sydney and getting rid of that 300-400 grand worth of debt,” Chivers said.
“It is a beautiful place to live in the Dungog area. Why would you want to be in Sydney if your wages aren’t stacking up there?”
Price brackets: The sweet spot
Tighe said Gloucester’s strongest residential demand sits below $750,000, with first-home buyers and investors highly active.
Chivers reports similar price sensitivity in Dungog.
“Up to $600 is pretty easy for us to sell for residential,” he said.
“And up to a million bucks is pretty easy to sell for a house on acreage. But $1.2m to $1.5m is much harder.”
2026 outlook: Strong competition
Both agents expect solid conditions to continue into the new year.
“I’m pretty positive about it,” Tighe said.
“I think Gloucester presents a lot of value for buyers.
“We’ll continue to see competition in our places as they hit the market.”
Chivers said Dungog was also tracking toward a stable and competitive year ahead.
“There’s always good competition,” he said.
“I think the local market will keep rolling.”
By Matt TAYLOR
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