Four tree-change towns that are close to Sydney but much cheaper

Burnt-out Sydneysiders are increasingly upping sticks and moving to quieter communities within easy reach of the city, say agents.

The commuter towns they’re choosing boast natural beauty, country charm and attractive property prices – and some remain relatively unsung.

Here are four such destinations within two hours of central Sydney.

Mittagong

The Southern Highlands town of Mittagong has long existed in its neighbour Bowral’s shadow.

“Historically, Bowral was white-collar and Mittagong was blue-collar,” says Jacob McKinnon, principal agent at Harpers and a lifelong Southern Highlands resident.

“When people started buying weekenders here, that distinction stuck. Today, Bowral is about 10 per cent more expensive, like for like.”

The data bears him out: the median house price in Mittagong was $1.12 million in December, on Domain data, versus $1,425,000 in Bowral.

However, Mittagong’s median increased by a substantial 14.9 per cent in 2025, while Bowral’s declined by 2.6 per cent, suggesting buyers are increasingly favouring the underdog.

Mittagong has plenty to offer residents, says McKinnon, from excellent public leisure facilities to strollable boulevards and bushwalking tracks.

“It’s also just a little bit easier to live here. In Bowral, you’re going to stand in a queue for 30 minutes to get a coffee on a Saturday, whereas in Mittagong you’re getting a coffee in two minutes.”

The town, slightly closer to Sydney than Bowral, is a 75-minute drive from the CBD in good traffic. Trains take about two hours.

McKinnon says buyer demographics have shifted over the past five years, with fewer holiday-home buyers and more tree changers.

“I just sold a property to a Sydney buyer looking for a weekender, but that’s rare now. Those properties are mostly going to owner-occupiers.”

Katoomba

When Jacqui Porter and her partner moved to Katoomba from Sydney 12 years ago, the town was dominated by long-time locals.

“Now, about half our buyers are from Sydney,” says Porter, an agent at Ray White Upper Blue Mountains.

Like many recent arrivals, Porter’s partner commutes to the city, catching a train that reaches Central in just over two hours. By car, the trip takes 90 minutes.

While other Blue Mountains settlements are closer to Sydney, Katoomba offers perks its neighbours can’t match, says Porter.

“We’re the most visited town in the mountains, so we have excellent restaurants and cafes.”

Schools, a hospital and an aquatic centre further enhance the town’s residential appeal, she says.

Katoomba’s median house price was $865,000 in December, on Domain data, rising a modest 1.2 per cent in 2025.

“The market got quite hot at the end of last year, with interest rate reductions and the first home buyer’s scheme,” says Porter.

“There’s still strong competition for properties under a million dollars. For more expensive properties, we’re seeing a return to our standard number of days on market.”

Porter says that despite Katoomba’s status as the Blue Mountains’ busiest tourist hub, it feels like a country village.

“I have two teenagers and I just love that I know all their friends and all their friends’ parents. It’s a real sense of community.”

Cessnock

A dollar stretches further in Cessnock than it does elsewhere, says Brendan King, agent at Belle Property Hunter Valley and a lifelong local.

“Here, you pay around $7 for a beer. In Sydney, it’s $12 … That’s expensive enough to ask the bartender: ‘Do I keep the glass with that?’”

According to King, Cessnock’s history as a working-class mining town continues to shape its identity and keep a lid on prices, even as its demographics evolve.

The median house price was $670,000 in December, on Domain data, rising 8.1 per cent over the year.

“When someone from Sydney moves here, they upsize their property and downsize their mortgage,” King says.

“The houses are bigger, better, newer.”

The market has remained buoyant this year, King says, with a mix of local and out-of-town buyers.

Cessnock’s proximity to Hunter Valley wineries and attractions such as the Hunter Valley Wildlife Park means there’s plenty to keep residents occupied.

The town is a two-hour drive from central Sydney in good traffic, but there is no direct public transport. The train trip, changing at Newcastle, takes four to five hours.

Still, King says growing numbers of Sydney locals are choosing to move to Cessnock, particularly those who can work remotely.

“You’re still connected here. We’re only 45 minutes from Newcastle, so if you want to go in and watch the Knights, you can.”

Kangaroo Valley

Sydneysiders have been escaping to Kangaroo Valley for decades, says lifelong resident Frank Barker, an agent at Raine & Horne Southern Highlands.

But a trickle turned into a flood during the COVID-19 pandemic.

“People were racing down the freeway like they were in a zombie movie,” Barker says.

Luckily, the big-city blow-ins haven’t done much to alter the character of the place.

“They’re not looking to change what’s here. These are people who saw the light and were attracted to the beauty of the valley.”

Beautiful – and bucolic – it certainly is. Situated between the Southern Highlands and the Shoalhaven coast, Kangaroo Valley is landlocked by peaks. Its lush fields support dairy farming while its escarpments offer stunning views.

There is no public transport in the immediate vicinity, which keeps visitor numbers down. Sydney is two hours away by car.

“The valley hasn’t been affected by massive subdivisions,” says Barker, who owns a 150-acre farm where he breeds cattle. “There’s still a country village atmosphere.”

The village centre consists of little more than a service station, a pub and a general store.

Property turnover in 2025 was too low to derive a median price, but Barker says the valley remains surprisingly affordable.

“You can buy a little townhouse in the middle of the village for between $700,000 and $850,000.”

Acreage properties start at about $1.25 million, he says. “You’ll pay from $1.7 million up to about $3.5 million on a four-bedroom house on five acres.”

The highest price paid for a large acreage in the valley was $9.5 million, Barker says.