The once cheap Tamworth suburb is finally catching up with the rest of the state, as a local developer argues it was severely underpriced for more than a decade.

A PropTrack report listed the suburb among the areas in Australia which have had the strongest increase in property prices in the last ten years.

Hunter Land Company director and Moore Creek Gardens developer Hilton Grugeon said the shift is no surprise given the population growth of regional areas like Tamworth.

"Moore Creek has been one of the most underpriced regions in the state - period," he said.

"It came from a very, very low base and that was because the population wasn't growing fast enough which is what sustains the values of your property.

"That's all changed, there's been more growth in the regional centres."

Ten years ago, the median property price in Moore Creek was just $152,750, within five years that price more than doubled to $455,000.

According to PropTrack, the median property price in 2021 was $472,500, but that figure has substantially increased in the past 12 months, particularly during the COVID-19 pandemic as regional cities like Tamworth experience high demand.

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A development boom has seen numerous new estates popping up across Moore Creek, including Windmill Hill, The Meadows and Moore Creek Gardens.

There are hundreds of new lots on offer, and with Tamworth Regional Council's population target of 100,000 people by 2041, Mr Grugeon expects the boom to continue.

"It was inevitable it was going to happen and it's been very good for the people that were already there, but the property prices in Tamworth were very much undervalued because the land value underpinning it all had not moved," he said.

"The price is starting to get closer to where it should be in comparison with the rest of the state. It was way under with where the rest of the state was, even in regional areas."

He said factors such as employment and lifestyle opportunities in Tamworth have had positive impacts.

"People who aren't living at Tamworth are looking at it and saying 'that's ridiculously cheap, we'll buy it'," he said.

"The lifestyle Tamworth has to offer is fantastic - but you all know that.

"The tangible opportunity going forward is fantastic, it's not an area that's looking at huge downward adjustment in employment and wealth creation like areas that are affected by a phasing out of fossil fuels. "

Maitland suburb Largs experienced the second fastest growth in the state according to the report, but it was Malmsbury in regional Victoria that topped the list.

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