City investors looking for a bargain in the bush are finding Dalby a profitable option.

Dalby's property prices are on the up spurred on by outside speculators chasing attractive returns on their capital investment. Already local estate agents are reporting a 25 per cent rise on average home prices and the trend doesn't look like slowing down in the foreseeable future.

While there are strong indicators that the investment property boom in city areas is finally over, property experts are confident regional areas such as Dalby are yet to reach their peak. Recent Dalby sales statistics show that over the past 12 months buyers from major centres such as Brisbane, Sydney and Melbourne were snapping up houses valued below $100,000.

These buyers were looking to Dalby for affordable investment homes that typically offered between 10-14 per cent returns. With the lower market bracket largely spent, agents are now reporting a second wave of investors buying homes valued between $100,000-$150,000.

Figures indicate that local investment properties in this price range average returns of around seven per cent while many city areas are returning four per cent or less. Brisbane investor Derek Swift said he bought property in Dalby because the returns were higher than in most city areas and the town's future looked secure.

"I've looked around at different places and the value for money is there in Dalby," he said.

Property prices are also on the increase in the higher market bracket with agents recording healthy sales for houses over $200,000 while houses at the top end were selling for $300,000 plus.

The internet has proved a successful method of marketing Dalby to outside investors with between 780-830 hits being recorded daily on just one internet sales site.

Many local real estate advisers believe Dalby is still in "catch-up phase" and expect prices to climb in coming months.

Planned development projects such as the Kogan Creek power station could push prices even higher as increased employment opportunities bring more people to the area.