Australia’s strongest-performing suburbs in 2025 were overwhelmingly at the affordable end of the market, as buyers chased lower entry prices, investor returns and new government support schemes, according to fresh PropTrack data.
The PropTrack analysis tracks price growth, buyer demand and days on market to pinpoint suburbs that outperformed last year – and the areas best placed to carry momentum into 2026.
REA Group senior economist Anne Flaherty (pictured) said last year’s market was fuelled by easier borrowing conditions, but warned the backdrop has now shifted.
“We had three interest rate cuts that really stimulated buyer demand,” Flaherty said. “We saw growth up across the country.
“This year, the rate of growth is probably not going to be as strong as we saw last year because we're not anticipating any further rate cuts this year – they might even rise.”
She expects cheaper markets to keep leading gains in 2026.
“In 2025 we saw stronger levels of demand at the more affordable end of the market,” Flaherty said.
“With the 5% deposit scheme coming in, that's going to add to that increased demand for those more affordable suburbs. We would anticipate that the rate of growth is going to be stronger in those areas.”
The data shows the fastest-growing suburbs were also among the cheapest.
Rangeway in Geraldton defended its crown as top growth suburb for the second year running, with values up 43%, while York and Denmark also pushed Western Australia up the rankings.
Regional areas dominated in other states too. Red Cliffs, Merbein and Mildura in Victoria’s north-west recorded house price growth of 23%–27%, while Burnie and Devonport were standouts in Tasmania amid migration from higher-priced states.
Flaherty said regional markets remain supported by relative value and tight supply.
“Affordability is a significant factor here,” she said. “People are moving into regional areas because they can't afford to buy in capital cities.
“Even in regions that see relatively modest population growth, it’s often exceeding the development of new housing.”
Darwin delivered one of 2025’s biggest turnarounds, with affordable investor hotspots Gray, Moulden, and Woodroffe among the top 10 for house price growth, recording gains of 36%–40% on the back of surging rents and scarce listings.
“Investors are bidding up the prices of properties in Darwin,” Flaherty said. “Even though we have seen increased owner-occupier demand in Darwin, the investor demand is really the major driver there.”
In Perth, Ellenbrook in the city’s north-west shared the title of equal-fastest unit price growth nationally with Harristown in Toowoomba, with values up 39%.
Real estate agent and 360 Real Estate Ellenbrook director Mark Snelson said affordability was key.
“It's the price point,” Snelson told realestate.com.au. “Affordability is a drawcard. Below $650,000 is very strong.”
Inner Perth unit markets such as Maylands and Glendalough also posted gains above 30% as buyers priced out of houses redirected demand into more affordable apartments.
In Melbourne’s north, suburbs including Dallas, Broadmeadows, and Campbellfield are receiving heavy enquiry as investors target rising rental demand and first-home buyers compete under 5% deposit scheme caps.
“Buyers from interstate are competing with the locals and paying more money," said Barry Plant Glenroy auctioneer Richard Ali. “The vacancy rate is very low and properties for rent don’t sit on the market for long.”
PropTrack’s days-on-market data highlights tightly held pockets in Melbourne, Perth, Adelaide, and Darwin where homes sell in roughly two weeks or less, including Carrum Downs, Kilsyth South, Woodvale, Edgewater, and parts of the Adelaide Hills, along with several Darwin suburbs.
Short selling times and persistent enquiry in both affordable and prestige postcodes point to solid underlying demand and suggest many of 2025’s outperformers are well placed to extend their run this year.
Economists expect Australian home values to keep rising in 2026, with forecasts of around 5% growth on top of 2025’s 8.6% gain, intensifying affordability pressures, while warning that the pace of gains will depend heavily on where interest rates move next.
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