Triple speed: 49 suburbs where house prices grew three times faster – realestate.com.au

House price growth is accelerating, but values ​​in these suburbs are already growing at three times the national rate.

The average house price in Australia has risen 7.6% in the past year, PropTrack data shows. This is the fastest annual growth rate since June last year.

The pace of price growth has accelerated this year, with interest rate cuts boosting borrowing power and first-home buyers receiving extensive government support to compete with investors, who have become increasingly active.

But the data shows there are 49 suburbs in Australian capitals where average house prices have risen by 22% or more in the past year – more than three times the national growth rate.

An annual growth rate of 22% is very fast. The only time in the past decade that home prices grew this fast nationally was in 2021, when a synchronized boom occurred after cash rates fell to record lows.

If a suburb is experiencing house price growth of 22% or more, it may indicate that there is very strong interest in homes for sale, and there may not be enough homes for sale to meet demand.

Of the capital’s 49 suburbs where prices rose by more than 22%, the majority were in Brisbane, Adelaide and Perth – markets that have been the strongest in the country in recent years.

Continue to see the full list of suburbs

Although prices are still growing rapidly in these cities, price growth has actually slowed from the rapid pace seen in mid-2024, when a housing shortage and rising demand for affordable housing caused prices to skyrocket.

REA Group senior economist Eleanor Creagh said housing market conditions in the best-performing capitals were normalizing after an exceptional multi-year period.

“In Brisbane, Adelaide and Perth, the pace of annual growth is slowing from previous highs, although prices are at record levels and continue to rise rapidly,” she said.

There were 19 Perth suburbs where house prices are at least 22% higher than a year ago.

Many of Perth’s suburbs with the fastest growth in average house prices were at the top end of the market, including beach and riverside suburbs such as Trigg, Como and Bicton.

This contrasts with the best-performing suburbs in recent years, which were concentrated in Perth’s more affordable south-east, where interstate investors and first home buyers competed fiercely for properties.

Property agent Todd Grierson of Yard Property said Bicton – where prices rose by almost 24% – was not as well known as other suburbs along the Swan River.

“It has a real mix of features,” he said. “There are some prime riverfront homes that are as good as anywhere in Perth, but there are also affordable homes for first home buyers.”

Mr Grierson said Perth’s housing boom has shifted to higher-end properties, with many homeowners taking advantage of the recent appreciation in recent years by selling to upgrade.

“The more affordable housing has experienced very strong growth,” he says. “That price growth found its way into the more established suburbs.”

House prices rose by more than 28% in Trigg, one of Perth’s most expensive suburbs. Image: realestate.com.au/sold

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There were 17 Adelaide suburbs where prices have risen at least three times the national rate in the past year.

As in Perth, the suburbs where house prices rose the most tended to be priced higher, including beachside suburbs such as Somerton Park and Semaphore.

Big gains were also made in inner suburbs such as Clarence Gardens, Marden and Enfield.

In Brisbane, eight suburbs experienced annual price growth of more than 22%, five of which were in the Ipswich region, about 40km west of Brisbane’s CBD.

Ipswich has been one of Australia’s strongest property markets of late, with prices in the region as a whole rising by almost 14% in the past year.

It remains affordable compared to the rest of Brisbane, even after such a steep price increase – a factor that continues to appeal to buyers.

The average house price is around $650,000 in both East Ipswich and North Booval, even after prices in these suburbs rose by 26% and 29% respectively in the past year.

Ipswich estate agent Joshua Schweitzer of Schweitzer Estate Agents said the price rise was driven by first home buyers, many of whom were now benefiting from the extended home warranty scheme.

Ipswich estate agent Joshua Schweitzer said there were more than 100 inquiries for this three-bedroom house in East Ipswich. Image: realestate.com.au/buy

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“We’ve had pretty consistent growth over the last five years, but what has really boosted is the 5% deposit scheme for first home buyers,” he said.

“The market is responding quickly. Across Ipswich, the release of more buyers who can buy for less than $1 million has boosted demand.”

There were only three Sydney suburbs where house prices rose by more than 22%.

Price growth for Australia’s most expensive capital has been relatively modest recently, although that is starting to change, with growth accelerating as the effects of interest rate cuts take hold.

House prices in Kurrajong, in Sydney’s far northwest, are returning to previous highs. Image: realestate.com.au/sold

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House prices in Bayview rose 28% to $3.75 million, although average values ​​in the prestigious northern Sydney suburb have fluctuated significantly in recent years.

Prices rose 25% in semi-rural Kurrajong in Sydney’s northwest, with the median value approaching the previous peak reached in late 2021 following a surge in interest in leafy suburbs with spacious properties during the pandemic.

House prices in Ashcroft rose 22% to $996,500, with the sub-$1 million price in the suburb proving attractive to price-conscious buyers.

Affordability has put suburbs like Ashcroft in Sydney’s west on the radar for buyers. Image: realestate.com.au/sold

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In Hobart, house prices in Kingston Beach rose almost 30% to $1,072,500, while Zuccoli in Darwin saw the average house price rise 22.5% to $625,000.

There were no Melbourne suburbs where house prices rose by 22% or more in the past year.

But with the city’s average price surpassing the previous record set in early 2022, amid a resurgence in investor interest in affordable suburbs, it is likely that more of Melbourne’s suburbs will see stronger price growth in the coming months.

Suburbs of capital cities where house prices have more than tripled in twelve months