Underdogs have risen in price growth over the past year, but can the newcomers challenge for the trophy in 2026?
New PropTrack data on price growth, buyer demand and how long it takes a home to sell across Australia has revealed the winners of 2025’s biggest property markets, with several suburbs turning out to be the best.
While arrivals are challenging headline housing price growth, others are returning after an extended downturn.
The results reveal the under-form areas to watch in 2026, which grow slightly differently than last year.
As the action heats up on the court at the Australian Open, landlords in Australia’s hottest locations have already played the property game for 2025, with buyers bracing for tough competition next year.
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REA Group’s chief economist, Anne Flaherty, said the fall in interest rates had been reflected in the property market last year, but the recent rise in inflation meant the game had changed.
“We have had three interest rate cuts that have encouraged consumer demand,” he said. “We’ve seen growth across the country.”
“This year the rate of growth will probably not be as strong as we saw last year because we do not expect prices to be reduced again this year – they may increase.”
However, one type of structure is likely to perform best next year, Ms Flaherty said.
Houses in the capital’s leafy pockets have become increasingly popular with buyers recently. Photo: realestate.com.au/sold
“By 2025 we saw strong levels of demand at the low end of the market,” he said.
“With the 5% deposit scheme coming, that will add to that increased demand for those more affordable properties.”
“We expected that the growth rate would increase significantly in those areas.”
Affordable cities on top of the tables
The data shows the fastest-growing areas over the past year were also the most affordable, with buyers rushing to take advantage of affordable properties while they’re still available.
The Rangeway in Geraldton has defended its title as the year’s top growth destination, topping the charts for the second year in a row with a 43% increase in prices.
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One of Australia’s cheapest suburbs, Rangeway in Geraldton, also has the fastest price growth in the country. Photo: realestate.com.au/sold
Data used PropTrack’s automated valuation model (AVM) to determine the city’s median house or unit value.
Other Western Australian regional cities in the top 10 for house price growth include York and Denmark.
Sub-regional areas were also up in NSW, Victoria, South Australia and Tasmania.
Red Cliffs, Merbein and Mildura in north-west Victoria recorded house price growth of 23% to 27%, while the suburbs of Burnie and Devonport in Tasmania stood out amid a surge in people moving from tropical states.
Ms Flaherty said prices had been growing more strongly in regional areas than in capital cities recently.
“Affordability is an important factor here,” he said. “People move to rural areas because they don’t have the money to buy in big cities.”
“Even in regions where population growth is slow, it often outpaces new housing development.”
More buyers are moving to more affordable regional towns like Mildura, causing prices to rise. Photo: realestate.com.au/sold
The most affordable cities can grow by a strong percentage because of their lower starting point, Ms. Flaherty said.
“Usually if the average price is low to begin with, there is more room for prices to grow,” he said.
Underdog zones are coming back
Darwin was a turning point in 2025, when the city regained its position as a magnet for interstate investors as rising rental returns, growing demand and a shortage of properties on the market caused prices to rise.
Three affordable Darwin suburbs popular with investors – Grey, Moulden and Woodroffe – were among the top 10 for house price growth, with prices up between 36% and 40%.
Darwin made dramatic changes in 2025, with values boosted by increased investor demand. Photo: realestate.com.au/buy
“Investors are bidding up real estate prices in Darwin,” Ms Flaherty said. “While we have seen an increase in demand for owner-occupiers in Darwin, investor demand is at the forefront.”
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 perform well for a while.”
Extended rally
Despite signs of buyer fatigue last year, Perth’s property market recorded further gains, particularly in less expensive areas.
Ellenbrook in the north-west of the city had the fastest unit price growth in the country, sharing the title with Harristown in Toowoomba. Prices in both suburbs are up 39% over the past year.
Realtor and director of 360 Real Estate Ellenbrook, Mark Snelson, said the suburb appeals to home and interior investors and first-time home buyers.
“The price,” he said. “Affordability is the draw card. Under $650,000 is very strong.”
However, the hot market has slowed and some properties have been on the market for a long time, Mr Snelson said.
Buyer demand remains strong in Perth’s many affordable pockets. Photo: realestate.com.au/sold
Unit prices also increased by more than 30% in Perth suburbs such as Maylands and Glendalaugh.
Ms Flaherty said many homebuyers have switched to units, increasing demand for affordable properties.
Investors on the front foot
Another investor-led rebound is underway in Melbourne, where buyers are scrambling to find affordable housing in prime locations to take advantage of rising rental demand.
The data shows that properties for sale in areas north of Melbourne such as Dallas, Broadmeadows and Campbellfield are receiving the most inquiries from potential buyers – an indication that demand for housing was strong.
International investors dominate the market in Melbourne’s more affordable suburbs such as Broadmeadows, where this three-bedroom house sold for $789,500 last year. Photo: realestate.com.au/old
Estate agent Richard Ali of Barry Plant Glenroy said there was a lot of competition in the area between investors looking for high rental returns and first home buyers looking for homes priced at less than 5% of the deposit scheme price.
“Buyers from different countries compete with local people and pay more,” he said.
“Vacancy rates are very low and rental properties don’t last long on the market.”
Demand was highest in St Marys and Werrington in Sydney’s west, as well as Rocklea and Loganholme in Brisbane’s south – suburbs where homes are generally more affordable than the rest of the city.
At the other end of the spectrum, properties in other high-priced postcodes were also in demand, with many buyers looking to capitalize on the strong gains of the past few years by upgrading to more valuable homes.
Inquiries have been high in Perth suburbs such as Wembley, Floreat and Salter Point, where median house prices are close to $2 million.
“In many areas where only houses are available, we may not see opportunities to buy,” said Ms. Flaherty. “Because the suburbs are popular, when they come up we tend to see very high levels of demand.”
Family sized homes in Perth’s most sought after premium pockets. Photo: realestate.com.au/sold
Floreat estate agent Leanne O’Leary of Area Specialist said many buyers were upgrading from units or smaller houses nearby.
“The area in the city has a good school, so families want to move into this area,” he said.
“There are very low stock levels and they are very tightly held, so when people buy in the suburbs they tend to stay.”
Where sellers sell fast
PropTrack data revealed that the suburbs with the fastest sales times were found in pockets of Melbourne, Perth and Adelaide, including leafy areas where homes come on the market slowly.
First-time home buyers have been eager to find affordable properties in Carrum Downs in Melbourne’s south-east. Photo: realestate.com.au/sold
Houses for sale approximately 12 days in Carrum Downs south east of Melbourne 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 suburbs such as Daglish and Highgate, and Mandurah suburbs such as Bouvard and Meadow Springs.
Houses in the Adelaide Hills suburbs of Upper Sturt and Glenalta sold quickly, staying on the market for just over two weeks.
Several suburbs in Darwin recorded low days on the market, including The Gardens and Layer for units and Moulden, Zuccoli and Bakewell for houses.
Spacious properties in the Adelaide Hills are always in high demand. Photo: realestate.com.au/sold
Short sales periods in all these markets indicate strong underlying demand and suggest that momentum will continue, as prices are tipped to increase further this year.
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