Certain regional areas are experiencing a surge in homebuyer demand, according to new data from one of the banking big four.

Westpac's latest lending data reveals the top 30 areas for homeowners with the biggest increase in buying activity over the year to May were outside the capital cities.

In fact, nearly half of the booming areas are regional towns.

The trend underscores a move away from urban centres and highlights an enduring appetite for regional living that has far outpaced post-pandemic expectation - and is reflected in recent national price growth figures.

"Regional Australia continues to outperform, with prices rising 5.9 per cent over the past year compared to three per cent across capital cities," said Westpac economist Matthew Hassan.

"More strikingly, since 2019, region

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