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Australia's Top Property Suburbs of 2025: Unveiling the Winners

realestate.com.au
January 21, 20261 day ago
Property score card: The suburbs winning in straight sets across the country

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Affordable suburbs across Australia experienced significant property price growth in 2025, driven by falling interest rates and a 5% deposit scheme. Regional areas, particularly in Western Australia and Tasmania, saw strong performance. Darwin emerged as a turnaround market with a price boom fueled by investor demand. Perth and Melbourne also saw gains, especially in affordable segments and units.

Underdog suburbs rose through the price growth rankings last year, but could newcomers challenge for the trophy in 2026? New PropTrack data tracking price growth, buyer demand and how long it takes a home to sell across Australia has uncovered the biggest property market winners of 2025, with several surprising suburbs coming out swinging. While newcomers are challenging for the house price growth title, others are making a comeback after an extended slump. The results reveal the in-form suburbs to watch in 2026, which is shaping up to be a little different to last year. As the action heats up on court at the Australian Open, homeowners in Australia’s hottest suburbs have already aced the property game in 2025, with buyers preparing for tough competition in the year ahead. Jump ahead to see: Where values increased the most The most in-demand suburbs The fastest selling suburbs REA Group senior economist Anne Flaherty said falling interest rates characterised the property market last year, but the recent uptick in inflation meant the game is now changed. “We had three interest rate cuts that really stimulated buyer demand,” she said. “We saw growth up across the country.” “This year the rate of growth is probably not going to be as strong as we saw last year because we're not anticipating any further rate cuts this year – they might even rise.” However, one type of property is more likely to outperform in the year ahead, Ms Flaherty said. “In 2025 we saw stronger levels of demand at the more affordable end of the market,” she said. “With the 5% deposit scheme coming in, that's going to add to that increased demand for those more affordable suburbs.” “We would anticipate that the rate of growth is going to be stronger in those areas.” Affordable suburbs topping the tables The data shows the fastest growing suburbs in the past year were also some of the cheapest, with buyers rushing to take advantage of affordable properties while they last. Rangeway in Geraldton has defended its title as the top growth suburb of the year, topping the tables for two years running with a 43% rise in values. The data used PropTrack’s automated valuation model (AVM) to determine a suburb’s median house or unit value. Other regional Western Australian towns in the top 10 suburbs for house price growth included York and Denmark. Regional suburbs also dominated the list of top performers in NSW, Victoria, South Australia and Tasmania. Red Cliffs, Merbein and Mildura in Victoria’s north west recorded house price growth of 23% to 27%, while suburbs of Burnie and Devonport in Tasmania were standouts amid a surge in migration from hotter states. Ms Flaherty said prices had been growing stronger in regional areas than in the capitals recently. “Affordability is a significant factor here,” she said. “People are moving into regional areas because they can't afford to buy in capital cities.” “Even in regions that see relatively modest population growth, it’s often exceeding the development of new housing.” More affordable suburbs can experience stronger percentage price growth due to their lower starting point, Ms Flaherty said. “Often if the median price is lower to start with, there's more room for prices to grow,” she said. Underdog suburbs making a comeback Darwin was the turnaround story of 2025, with the city reclaiming its status as an interstate investor magnet as rising rental returns, surging demand and a shortage of properties on the market triggered a price boom. Three affordable Darwin suburbs favoured by investors — Gray, Moulden and Woodroffe — were among the top 10 for house price growth, with values rising by between 36% and 40%. “Investors are bidding up the prices of properties in Darwin,” Ms Flaherty said. “Even though we have seen increased owner occupier demand in Darwin, the investor demand is really the major driver there.” Darwin’s price trajectory after a breakout year meant the city was likely to experience strong price growth in 2026, Ms Flaherty said. “If we look at the momentum of price growth in recent months, Darwin is likely to continue to outperform for a while.” Extended rally Despite signs of buyer fatigue last year, Perth’s property market recorded further gains, especially in more affordable areas. Ellenbrook in the city’s northwest had the nation’s equal fastest unit price growth, sharing the title with Harristown in Toowoomba. Prices in both suburbs rose 39% in the past year. Real estate agent and 360 Real Estate Ellenbrook director Mark Snelson said the suburb appealed to both local and interstate investors and first-home buyers. “It's the price point,” he said. “Affordability is a drawcard. Below $650,000 is very strong.” However, the hot market had slowed a little and some properties were staying on the market longer, Mr Snelson said. Unit prices also surged more than 30% in inner Perth suburbs such as Maylands and Glendalaugh. Ms Flaherty said many buyers priced out of purchasing a house had switched focus to units, increasing demand for the more affordable property type. Investors on the front foot Another investor-led rebound is underway in Melbourne, with interstate buyers lobbing offers for homes in affordable suburbs to take advantage of rising rental demand. The data shows that properties for sale in northern Melbourne suburbs such as Dallas, Broadmeadows and Campbellfield are receiving scores of enquiries from potential buyers – an indication that demand for homes was strong. Real estate agent and auctioneer Richard Ali of Barry Plant Glenroy said there was strong competition in the area between investors seeking high rental returns and first-home buyers looking for homes price below the 5% deposit scheme price caps. “Buyers from interstate are competing with the locals and paying more money," he said. “The vacancy rate is very low and properties for rent don’t sit on the market for long.” Demand was also high in St Marys and Werrington in Sydney’s west, and Rocklea and Loganholme in Brisbane’s south – suburbs where homes are typically more affordable than the rest of the city. At the other end of the spectrum, properties in some pricier postcodes were also sought-after, with many buyers looking to capitalise on strong gains of the past few years by upgrading to more valuable homes. Enquiries were at elevated levels in Perth suburbs such as Wembley, Floreat and Salter Point, where median house prices are close to $2 million. “In a lot of the more exclusive suburbs for houses, we might not see opportunities to buy come up as much,” Ms Flaherty said. ”Because they are popular suburbs, when they do come up we can often see very high levels of demand.” Get your realEstimate™ Track your property's value and unlock insights and data tailored for property owners. Floreat real estate agent Leanne O’Leary of Area Specialist said most buyers were upgrading from units or smaller homes nearby. “The suburb has good schooling, so families really want to get into the area,” she said. “There’s very low stock levels and it’s tightly held, so when people buy into the suburb they tend to stay.” Where sellers net quick sales PropTrack data has revealed that the suburbs with the quickest sale times were found in pockets of Melbourne, Perth and Adelaide, including leafy areas where homes come to market less frequently. Houses sold in about 12 days in Carrum Downs in Melbourne’s outer south‑east and 14 days in Kilsyth South. It took about two weeks to sell a home in Woodvale and Edgewater in Perth's north, while units sold quickly in inner suburbs such as Daglish and Highgate, and suburbs in the Mandurah region such as Bouvard and Meadow Springs. Homes in the Adelaide Hills suburbs of Upper Sturt and Glenalta were quick to sell, staying on the market for a little over two weeks. Several Darwin suburbs recorded lower days on market, including The Gardens and Leanyer for units and Moulden, Zuccoli and Bakewell for houses. Short selling times across these markets reflect strong underlying demand and suggest momentum will continue, with prices tipped to rise even further this year.

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    Top Property Suburbs 2025: Australia's Winners