Underdog suburbs rose through the price growth rankings last year, but could newcomers challenge for the trophy in 2026?
New PropTrack Data on price growth, buyer demand and how long it takes to sell a house across Australia has revealed the biggest property market winners of 2025, with several surprising suburbs coming out swinging.
While new entrants vie for the title of home price growth, others are making a comeback after a prolonged slump.
The results show which suburbs in good shape to watch in 2026, which will look a little different than last year.
As the action on the Australian Open court heats up, homeowners in Australia’s hottest suburbs have already won the property game in 2025, with buyers preparing for tough competition in the year ahead.
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REA Group senior economist Anne Flaherty said falling interest rates characterized the property market last year, but the recent rise in inflation meant the game has now changed.
“We’ve had three rate cuts that really stimulated buyer demand,” she said. “We saw growth everywhere in the country.”
“This year the pace of growth is unlikely to be as strong as last year as we do not expect further rate cuts this year – they could even rise.”
However, one type of property is likely to perform better in the coming year, Ms Flaherty says.
“In 2025, we saw stronger demand at the more affordable end of the market,” she said.
“With the 5% down payment program coming into effect, that will help drive increased demand for those more affordable suburbs.”
“We expect the growth rate to be stronger in those areas.”
Affordable suburbs top the list
The data shows that the fastest growing suburbs last year were also among the cheapest, with buyers rushing to take advantage of affordable properties while they still exist.
Rangeway in Geraldton has defended its title as the most growing suburb of the year, topping the rankings for two years in a row with a 43% increase in value.
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One of Australia’s cheapest suburbs, Rangeway in Geraldton, also has the fastest price growth in the country. Image: realestate.com.au/sold
The data used PropTrack’s Automated Valuation Model (AVM) to determine a suburb’s average home or unit value.
Other regional Western Australian cities in the top 10 suburbs for house price growth included York and Denmark.
Regional suburbs were also top performers in NSW, Victoria, South Australia and Tasmania.
Red Cliffs, Merbein and Mildura in north-west Victoria recorded a 23% to 27% rise in house prices, while Tasmania’s Burnie and Devonport suburbs were the outliers amid a wave of migration from warmer states.
Ms Flaherty said prices in regional areas had risen more recently than in capital cities.
“Affordability is an important factor here,” she says. “People are moving to regional areas because they can’t afford to buy in the capitals.”
“Even in regions with relatively modest population growth, this often exceeds the development of new housing.”
More buyers are moving to affordable regional towns such as Mildura, driving up prices. Image: realestate.com.au/sold
More affordable suburbs may experience stronger percentage price growth because of their lower starting point, Ms Flaherty said.
“If the average price is lower to begin with, there is often more room for price growth,” she says.
Underdog suburbs are making a comeback
Darwin was the watershed story of 2025, with the city regaining its status as an interstate investor magnet as rising rental yields, rising demand and a shortage of properties on the market fueled a price increase.
Three affordable Darwin suburbs favored by investors – Gray, Moulden and Woodroffe – were among the top 10 for house price growth, with values rising between 36% and 40%.
Darwin experienced a remarkable turnaround in 2025, with values boosted by rising investor demand. Image: realestate.com.au/buy
“Investors are bidding up the prices of properties in Darwin,” Ms Flaherty said. “Even though we have seen increased demand for owner-occupied homes in Darwin, investor demand is really the main 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.
“Given the momentum of price growth in recent months, Darwin is likely to continue to outperform for some time to come.”
Extensive rally
Despite signs of buyer fatigue last year, Perth’s property market made further gains, especially in more affordable areas.
Ellenbrook in the city’s north-west experienced the fastest unit price growth in the country, sharing the title with Harristown in Toowoomba. Prices in both suburbs rose by 39% in the past year.
Broker and director of 360 Real Estate Ellenbrook, Mark Snelson, said the suburb appealed to both local and interstate investors and first home buyers.
“It’s about price,” he said. “Affordability is a draw. Under $650,000, that’s very strong.”
However, the hot market had slowed slightly and some properties were staying on the market longer, Mr Snelson said.
Buyer demand remains strong in many affordable areas of Perth. Image: realestate.com.au/sold
Unit prices also rose by more than 30% in Perth suburbs such as Maylands and Glendalaugh.
Ms Flaherty said many buyers for whom purchasing a home was too expensive have shifted their focus to units, increasing demand for the more affordable property type.
Investors in the foreground
A new investor-led boom is underway in Melbourne, with interstate buyers snapping up deals on homes in affordable suburbs to take advantage of rising rental demand.
The data shows that properties for sale in Melbourne’s northern suburbs such as Dallas, Broadmeadows and Campbellfield are receiving dozens of inquiries from potential buyers – an indication that demand for homes was strong.
Interstate investors have dominated the market in affordable Melbourne suburbs such as Broadmeadows, where this three-bedroom house sold for $789,500 last year. Image: realestate.com.au/old
Property agent and auctioneer Richard Ali of Barry Plant Glenroy said there is strong competition in the region between investors looking for high rental yields and first home buyers looking for homes priced below the deposit scheme’s 5% price cap.
“Buyers from the highways are competing with locals and paying more money,” he said.
“Vacancy rates are very low and homes for rent are not 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 tend to be more affordable than the rest of the city.
At the other end of the spectrum, properties in more expensive postcode areas were also in demand, with many buyers looking to take advantage of strong gains in recent years by upgrading to more valuable properties.
The surveys were at a higher level in Perth’s suburbs such as Wembley, Floreat and Salter Point, where average house prices are almost $2 million.
“In many of the more exclusive housing suburbs we may not see as many opportunities to buy,” Ms Flaherty said. “Because they are popular suburbs, we often see very high demand when they appear.”
Family homes are in high demand in Perth’s tight premium neighbourhoods. Image: realestate.com.au/sold
Floreat agent Leanne O’Leary of Area Specialist said most buyers were upgrading from units or smaller homes in the area.
“The suburb has good education, so families are very keen to get into the area,” she said.
“Inventory levels are very low and stock is tightly held, so when people buy in the suburb they tend to stay.”
Where sellers realize fast sales
PropTrack data has shown that the suburbs with the fastest sales times are in Melbourne, Perth and Adelaide, including green belt areas where homes are less likely to come on the market.
First home buyers were keen to purchase affordable homes in Carrum Downs in Melbourne’s south-east. Image: realestate.com.au/sold
Homes sold in about 12 days in Carrum Downs in Melbourne’s far south-east and 14 days in Kilsyth South.
It took about two weeks to sell a house 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 sold quickly and stayed on the market for just over two weeks.
Several Darwin suburbs recorded lower market days, including The Gardens and Leanyer for units and Moulden, Zuccoli and Bakewell for houses.
Spacious homes in the Adelaide Hills remain in high demand. Image: realestate.com.au/sold
The short sales times in these markets reflect strong underlying demand and suggest that momentum will continue, with prices rising even further this year.
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