That's according to analysis by CoreLogic of Australia's 25 largest non-capital city markets to find out where has performed best and worst.
Illawara (NSW) had both the highest yearly growth and highest change in sales volumes in the regional house markets, at 12.0% and 14.0% respectively.
Ballarat (VIC) also demonstrated strong selling conditions for houses, with homes selling in just 30 days for very little discount.
Launceston and North Eastern Tasmania had the highest yearly growth in regional unit markets at 14.8%, and only took 26 days to sell with minimal discount.
The volatility of the regional Tasmanian market was seen in Launceston and North Eastern Tasmania also having the lowest change in sales volumes for both houses and units.
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Tim Lawless, CoreLogic Head of Research, said housing values in regional markets had been little affected by the COVID-19 pandemic.
"Broadly, regional housing values have held firm through the COVID period compared with their capital city counterparts, with dwelling values across the combined regional areas of Australia slipping by only 0.1% between March and the end of July, while capital city home values are down 2.0% over the same period," Mr Lawless said.
"While the region by region data shows diversity, the relatively steady conditions across the regional markets of Australia can probably be attributed to factors such as less impact on housing demand from stalling overseas migration; Close to 85% of Australia’s net overseas migration flows into the capital cities.
"Also there likely remains some momentum in the trend towards rising demand for lifestyle properties that was prevalent prior to COVID-19."
How are housing values tracking through the middle of the month? The monthly trend from @corelogicau still plodding lower with rate of decline holding around -0.7%. Larger falls in Melb where values are now 4.2% below recent peak but more stable conditions in Adelaide & Brisbane. pic.twitter.com/locHp0XUdL
— Tim Lawless (@timlawless) August 14, 2020
Bunbury (WA) was the worst performer for regional house markets, down 6.3% in the year to July 2020, while Hume (VIC) was the worst for units, down 11.1% in the same period.
New England and North West New South Wales had the longest days on market for houses at 99 days, while in Wide Bay (QLD) it took 105 days to sell a unit.
Townsville had the largest discounts to secure a sale for both units and houses, at 5.9% and 6.2% respectively.
Mr Lawless said regional areas offered a wide range of advantages and risks compared to the nation's capitals.
"On the positive side, housing prices tend to be lower, providing a more affordable entry point to the market, population densities are generally lower which is something that might be even more appealing as we move through this pandemic, and in many examples, regional areas will offer some lifestyle advantages, either via the locations proximity to the coastline or wide open spaces," he said.
"On the downside, regional economic conditions can be more volatile, especially those areas that are heavily dependent on a single industry for economic prosperity, and some areas may not show the same level of amenity and access to essential services as a capital city or major centre."
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