Lithgow has recorded the highest average growth rate in the Central West over the past 20 years.
It is one of five Central West areas to have outperformed several capital cities in property price growth over the past decade.
And nine Central West areas have seen median house prices triple in the past 20 years - part of the hottest 111 growth areas in Australia.
A report by national property research group Propertyology has found strong local economies are driving house price increases in the region.
Head of research Simon Pressley said the Central West was a good place for people to invest in property.
"Contrary to the biggest myth in real estate which falsely claims that capital cities perform better than regional locations, Orange (4.4 per cent average annual growth over the last 10 years), Dubbo (4.8), Mudgee (4.3), Lithgow (6.6) and Bathurst (5.2) performed better than Brisbane (3.1), Adelaide (2.8) and Perth (1.8)," he said.
Lithgow's median price has grown from $75,000 in December 1998 to $340,000 in December 2018.
GRAPH: HOW PRICES COMPARE
It represented an average growth rate of 7.9 per cent.
Lithgow LJ Hooker principal and licensee Jamie Giokaris has been active in the market since 1992 and said Lithgow had become an affordable destination for people seeking investment or a tree change.
Through the 2000's, investment into the area grew in established real estate and through a large amount of land development.
"It always come back to a price decision in the first instance," Mr Giokaris said.
"After that, people start to look at the other features, the location and the lifestyle.
"Lithgow offers affordability compared to other markets, especially Western Sydney."
Mr Giokaris said the rise of self-managed super funds had seen investments in regional areas like Lithgow improve. While a nest-egg of $300,000 would not be enough to invest in Greater Sydney, it could offer better returns for retirees than bank deposits.
Looking towards the future, Mr Giokaris said the long-term prospect of having a major airport within easy reach of the city coupled with a population push out of Western Sydney would make Lithgow a very attractive option. Hopefully that would coincide with road and rail improvements to improve travel times.
Following this year's election cycle, confidence was returning and a lot of action had been seen in the first-home buyer market recently, which was seeing a lot of sales in the lower end of the Lithgow market, Mr Giokaris said.
Mr Pressley said the latest research showed people were relocating from capital cities to regional areas.
"There's a growing appreciation for the wonderful lifestyle opportunities, wine and foodie cultures, affordable housing, great schools and jobs. We expect that trend to accelerate," he said.
The Propertyology research showed Lithgow's average growth rate (7.9 per cent) was the highest in the region over the 20 years followed by Mudgee (7.3), Cabonne, Bathurst and Dubbo (6.8) and Parkes (6.5).
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