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:

Nundah (North)
Median value $988,394
Annual change +11.8%
Ipswich Hinterland (Ipswich)
Median $790,119
Annual +10.7%.
Redcliffe (Moreton Bay – North)
Median $903,286
Annual +10.0%.
Caboolture Hinterland (Moreton Bay – North)
Median $888,571
Annual +10.0%.
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:

Frankston (Mornington Peninsula)
Median $793,152
Annual +6.0%.
Tullamarine–Broadmeadows (North West)
Median $709,167
Annual +5.0%.
Knox (Outer East)
Median $942,980
Annual +4.5%.
Dandenong (South East)
Median $757,195,
Annual +3.8%.
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:

St Marys (Outer West & Blue Mountains)
Median $1,024,688
Annual +7.4%.
Fairfield (South West)
Median $1,189,601
Annual +7.0%.
Liverpool (South West)
Median $1,123,438
Annual +6.8%.
Richmond–Windsor (Outer West & Blue Mountains)
Median $945,556
Annual +6.7%.
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.

A landmark beachfront home in Balgowlah Heights has sold for $17.5 million, setting a new residential record for the tightly held Northern Beaches suburb.

The six-bedroom residence at 30A Beatty Street changed hands on July 21 through Clarke & Humel Property, eclipsing its own previous benchmark by $5.7 million.

The property last sold for $11.8 million in October 2017, a result reported as a Balgowlah Heights record at the time. Its latest sale represents an increase of more than 48% in almost nine years and places it well ahead of other known sales in the suburb.

It is not the first time the address has reshaped local expectations. The home sold for $3.15 million in 2013 before extensive alterations and additions transformed it into the substantial trophy residence seen today. From that transaction to its latest sale, its recorded value has increased more than fivefold.

Occupying 1,074sqm in an exclusive no-through pocket, the property backs directly onto the golden sand of Forty Baskets Beach. A gate at the bottom of the garden opens to the beach and surrounding foreshore walks, creating the kind of direct harbour access rarely available on the Northern Beaches.

The home’s elevated, cascading design takes full advantage of its position. Walls of glass frame panoramic views across North Harbour, while a succession of indoor and outdoor living spaces follows the slope towards the water.

Arrival is suitably dramatic. The four-car garage—complete with harbour views—is connected to the residence by a lift. From there, a covered walkway leads through tropical gardens to an entrance framed by a koi pond, stone flooring and soaring ceilings.

At the centre of the home is an expansive living and entertaining level. A stone kitchen fitted with Miele appliances steps down towards the view, incorporating an integrated refrigerator and freezer and a built-in breakfast bar positioned to overlook the harbour.

The adjoining formal dining room opens through a bi-fold wall to a landscaped side courtyard. A substantial living room, anchored by a gas fireplace, also connects to the main terrace, creating a continuous relationship between the interior, gardens and water.

An electrically operated roof allows the terrace to be used in different weather conditions, while automated internal blinds and ducted airconditioning add to the home’s extensive technology and comfort features.

Outside, the entertaining areas continue around a swimming pool and spa. A built-in barbecue, steam room and generous terraces give the property the atmosphere of a private resort, with the beach only steps away.

The accommodation has been arranged to suit a large or multigenerational household.

Four bedroom suites occupy an upper level, while the main bedroom commands an entire floor. The private retreat includes sweeping harbour views, a large walk-in wardrobe and a luxurious ensuite.

On the lower level, a billiard room and bar are accompanied by two bedrooms and a bathroom. A separate self-contained studio provides further flexibility for extended family, guests or live-in staff.

The residence also includes a private home office, yoga room and extensive storage—features that allow it to function as both a secluded family home and a large-scale entertaining destination.

Sustainability and energy resilience have also been incorporated through solar panels and a Tesla battery.

Despite its rare waterfront setting, the property remains close to the conveniences of the lower Northern Beaches. Bus services are approximately 450 metres away, while Balgowlah Village, local schools and North Harbour Reserve are within easy reach. Manly is about three kilometres from the home.

The sale underlines the scarcity premium attached to Sydney homes combining substantial land, direct beach access and uninterrupted harbour views.

Balgowlah Heights has a median house value of about $4.23 million, according to PropTrack data displayed on realestate.com.au. At more than four times that figure, the Beatty Street result sits in a different tier from the suburb’s conventional prestige market.

Its price is also $6.65 million above the $10.85 million paid for neighbouring 30 Beatty Street in December 2025.

While conventional luxury features helped support the result, the defining asset is one that cannot be readily replicated: a private rear gate opening directly onto Forty Baskets Beach.

Where to Invest in 2025: Top-Performing Suburbs in Australia’s Property Market

Australia’s market is on the move again, and not always where you’d expect. We’ve found the surprise suburbs where prices are climbing fastest.

Brisbane

Melbourne

Sydney