Prices have surged in affordable pockets of Australia’s capitals, with many homeowners seeing gains of $59,000 to $106,000 in 12 months, according to new PropTrack data.
Analysis of the top 10 capital city markets for price growth shows that house prices rose fastest in Adelaide, Brisbane and Perth, while Sydney’s south west also delivered standout gains despite being more expensive than other top performers.
Adelaide led the list with south Adelaide house prices up 11%, translating to a $77,000 median gain. Other high-performing Adelaide regions included the north (up 9.7%) and west (up 9.3%).
“In capitals that have seen very strong rates of growth, such as Adelaide, Perth and Brisbane, it’s the more affordable suburbs in these high-performing cities where prices have grown most,” said Anne Flaherty (pictured), REA Group senior economist.
The data is based on SA4 regions defined by the Australian Bureau of Statistics (ABS), each with a population of at least 100,000.
PropTrack’s broader July 2025 Home Price Index shows national home prices reached a new peak, up 0.3% for the month and 4.9% year-on-year, with the median home price now at $827,000. Adelaide led monthly growth at 0.9%, reinforcing its position as the country’s top-performing capital.
South west Sydney posted one of the largest annual gains, with the median house price up 9.5% – or $106,000 in 12 months – reaching about $1.23 million.
Despite the jump, the region remains one of Sydney’s most affordable areas, well below the citywide median of $1.56 million.
“South west Sydney is still, as far as Sydney regions go, one of the most affordable,” Flaherty said.
“The median price is very high compared to other areas on the list, but by Sydney standards, a house for $1.2 million is definitely below the median house price in most other parts of the city.”
Infrastructure and population growth have been key drivers. Western Sydney Airport and surrounding upgrades have boosted demand, with values rising even before project completion.
“When a project is announced, it adds value to an area before it’s completed,” Flaherty said.
Local agent Blaz Dejanovic said positive sentiment around rate cuts is lifting confidence:
“The conversation around interest rates going down is creating a bit of positive sentiment,” he said. “Buyer confidence is strong,” Dejanovic said.
He added that new builds and granny flat opportunities are also helping drive values.
“New builds are performing really well, and there’s a big market for properties where you can build granny flats,” Dejanovic said. “You can build a granny flat today for $200,000 and you can rent it out for about $600 a week.”
Affordable areas have also led unit price growth, often outpacing houses. Ipswich topped the list with 20.3% growth, lifting its median unit price to $624,000 – up $76,000 in 12 months.
“People are now stretching to get to a unit,” said Richard Bolton, local real estate agent.
“If you’re a single person working making $50,000 to $60,000, the only thing you can afford is a unit. It’s a stepping stone to get into the market.”
All top 10 regions for unit price growth were in Brisbane, Perth and Adelaide, where housing demand is spilling into cheaper units as affordability pressures mount.
Suburb-level data shows some homeowners gained well over $100,000 in a year:
For the full PropTrack analysis, click here.
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