Australian property is once again in the midst of a growth cycle. After prices cooled in late 2024, 2025 has, aside from a flat January, delivered consistent gains. Much of this momentum is being fuelled by the Reserve Bank of Australia’s ongoing easing cycle, which has yet to reach its “terminal rate,” with several more rate cuts expected through the remainder of 2025 and into 2026.

Affordability has become the defining challenge in the residential real estate market. First home buyers are struggling to break in, squeezed by high entry prices, while many investors have stayed on the sidelines in recent years amid elevated interest rates and intense competition.

Yet the hunt for the next property hotspot never stops. It might not have the glamour of Bondi or Byron Bay. Still, a number of pockets within Australia’s largest capital cities are outperforming the broader market — and they’re attracting growing attention from buyers and investors alike.

We’ve looked at the best-performing SA4 regions from property data analytics firm Cotality.

Brisbane

Brisbane has been the strongest capital city property market over the last two years. The market has been supercharged by the announcement of the 2032 Brisbane Summer Olympics, but the market has been on fire since 2020, when there was an exodus from the southern states to the Sunshine States, which drove Brisbane to Australia’s second most expensive capital city.

Over the last 12 months, Brisbane dwelling values have risen by 7.3%, only bettered by growth in Darwin. There are some pockets around the city which have outperformed the market. The top five SA4s (regions) are:

1. Nundah (North)
   Median value $988,394
   Annual change +11.8%

2. Ipswich Hinterland (Ipswich)
   Median $790,119
   Annual +10.7%.

3. Redcliffe (Moreton Bay – North)
   Median $903,286
   Annual +10.0%.

4. Caboolture Hinterland (Moreton Bay – North)
   Median $888,571
   Annual +10.0%.

5. Ipswich Inner (Ipswich)
   Median $726,560
   Annual +9.9%.

Brisbane is not only posting solid citywide gains, but the strongest pockets are outside the CBD.  Growth is concentrated in Moreton Bay, Ipswich and northern corridors (Nundah/Redcliffe). That pattern points to ongoing demand for more affordable family housing and lifestyle submarkets within commuting distance of the city.

Melbourne

Melbourne has been the polar opposite to Brisbane in the last few years. It has been one of the worst-performing property markets, slipping to the sixth most expensive capital city in the rankings with a median dwelling value of $803,000. Only Hobart and Darwin media dwelling values are lower. 

Dwelling values are only up 0.5% year to date; however, 2025 has been more positive since the RBA started cutting rates. Dwelling values are up 2.4% year to date, and growth is becoming more consistent, something which Melbourne has struggled with since being the most locked-down city in the world during the pandemic. Struggling to respond from then.

There have been some pockets, however, where growth has been stronger over the last 12 months. The top five SA4 regions have been:

1. Frankston (Mornington Peninsula)
   Median $793,152
   Annual +6.0%.

2. Tullamarine–Broadmeadows (North West)
   Median $709,167
   Annual +5.0%.

3. Knox (Outer East)
   Median $942,980
   Annual +4.5%.

4. Dandenong (South East)
   Median $757,195,
   Annual +3.8%.

5. Sunbury (North West)
   Median $694,151
   Annual +3.8%.
   These top performers show growth focused on middle-ring and growth-corridor suburbs (Mornington Peninsula, northwest and outer east). For Melbourne readers, the implication is that recovery is geographically uneven — steady gains in commuter and lifestyle belts rather than a broad inner-city surge.

Sydney

Sydney, Australia’s most expensive capital, sits somewhere between Brisbane and Melbourne in its performance. The Harbour Capital is often the most impacted during a downturn, given the relative affordability of Sydney compared to the other capital cities. But then when there are good times, Sydney usually is the strongest beneficiary.

Dwelling prices are 2.6% up year to date, but the house market is largely outstripping the unit growth. Houses were up 0.8% in April, the strongest performing capital city house market on the eastern seaboard.

Sydney’s best-performing regions have been found well outside of the postcard suburbs Sydney is known for. The five best-performing SA4s in Greater Sydney by 12-month growth are:

1. St Marys (Outer West & Blue Mountains)
   Median $1,024,688
   Annual +7.4%.

2. Fairfield (South West)
   Median $1,189,601
   Annual +7.0%.

3. Liverpool (South West)
   Median $1,123,438
   Annual +6.8%.

4. Richmond–Windsor (Outer West & Blue Mountains)
   Median $945,556
   Annual +6.7%.

5. Bankstown (Inner South West)
   Median $1,408,088
   Annual +6.6%.
   Sydney’s strongest performers are dominated by the western and south-western corridors — affordable family suburbs and growth-area precincts where demand and price momentum remain strong. The much larger median values in some of these SA4s also show that even within growth suburbs, prices are high relative to national benchmarks.