In the McGrath Report 2018, John McGrath says Australians are embracing smaller cities as great places to work and live. He says Wollongong, Newcastle, Geelong, Ballarat, and Toowoomba have been the most successful regional hubs in attracting new populations.

Increasing property prices are pushing businesses to lower-cost regional centres, creating more job opportunities, and attracting more workers, says McGrath.

Related content: Selling up in Melbourne to be mortgage free in Geelong

Related content: Twenty per cent of Newcastle sales from Sydney buyers: PRDnationwide

New infrastructure has also made it easier to commute between regional cities and the capitals, meaning it's easier to have the low-key regional lifestyle while keeping the big job in the city.

The rise of telecommuting also means it's becoming more feasible to live outside the big cities, says McGrath.

McGrath says Wollongong, Newcastle, Geelong, Ballarat, and Toowoomba have been the most successful cities in transforming from old industry towns into attractive regional cities, with good jobs, cleaner environments, and appealing lifestyles.

• Geelong: median house price $445,000, up 2.4 per cent for the year, according to the McGrath Report 2018.
• Wollongong: median house price $720,000, up 15.2 per cent for the year.
• Newcastle: median house price $570,000, up 11.8 per cent for the year.
• Ballarat: median house price $326,000, up 4.8 per cent for the year.
• Toowoomba: median house price $375,000, up 2.2 per cent for the year.

The McGrath Report 2018 will soon be available to download here.

Read more about the rise of regional centres in Australia:

House prices down in South Australia's regional market

Selling up in Melbourne to be mortgage free in Geelong

Twenty per cent of Newcastle sales from Sydney buyers: PRDnationwide