In the face of mounting housing affordability challenges, Australians are increasingly turning to satellite cities—smaller urban centres within commuting distance of major capitals—for more attainable property options.
This trend comes amid a backdrop of surging prices nationally following the RBA’s recent rate cut, with some areas experiencing double-digit growth.
This trend comes amid a backdrop of surging prices nationally following the RBA’s recent rate cut, with some areas experiencing double-digit growth.
At the same time, affordability remains a key concern, with new research showing it now takes an average of eight years’ salary to buy a home in Australia.
PropTrack data revealed home prices have climbed more than 30% in the past year in select suburbs of satellite cities. These areas — typically located within an hour of major capitals — have become magnets for buyers priced out of the inner city.
“Affordability is a big part of the drawcard, particularly in Sydney,” said Angus Moore (pictured), executive manager of economics at REA Group. “We see a lot of people, particularly young families, moving from Sydney to places like the Central Coast to find more affordable housing.”
Many of the top-growth suburbs still have median house prices below their capital city counterparts, underscoring their relative value.
Sydney’s satellite cities—Newcastle, Central Coast and Wollongong—have seen significant activity, especially in affordable suburbs.
In Newcastle, inner-city areas like Carrington and Tighes Hill have pushed past the $1 million median mark.
“Inner-city suburbs are very much undergoing that regentrification process,” said Donna Spillane of Spillane Property. “We’re seeing more young people and young families who want that inner-city lifestyle.”
The Central Coast is regaining momentum after a lull following the pandemic boom.
“The holiday home buyer is starting to increase a little bit more,” said Steve Nixon of McGrath Avoca Beach. “A lot of buyers are looking to move up, but they may not move straight away.”
In Wollongong, demand is rising in budget-friendly suburbs like Warilla and Koonawarra, where median prices have surged.
“Well-located properties closer to the beach remained popular throughout market cycles,” Ray White’s Ben Cohen said.
While Melbourne and its satellite cities experienced price declines over the past year, select suburbs in Geelong, Ballarat and Bendigo have shown positive momentum, realestate.com.au reported.
Lovely Banks in Geelong’s north grew about 15%, supported by new housing development. Manifold Heights also climbed about 7%, reaching a $1.26 million median.
Bendigo’s central suburb and nearby Long Gully both recorded strong gains, while Soldiers Hill and Buninyong topped the list in Ballarat.
Brisbane outperformed the Gold Coast and Sunshine Coast for overall house and unit price growth in the past year. However, Toowoomba has outpaced Brisbane in house-price gains, with infrastructure upgrades drawing buyer attention.
“For the past three decades Toowoomba has always experienced growth coming from east to west,” NGU Toowoomba’s Matt Hawkins said. “Since COVID we’re getting people from the east coming west... We’re now experiencing growth from both angles.”
Premium suburbs like Surfers Paradise and Paradise Point led the Gold Coast’s growth, while hinterland towns such as Maleny and Pomona outperformed on the Sunshine Coast, showing demand for lifestyle and value.
In WA, suburbs in Mandurah and Bunbury have outpaced Perth’s growth in the housing market, driven by relative affordability, lifestyle appeal and access improvements, realestate.com.au reported.
“There’s also a ripple effect from Perth,” said Aaron Boud of Acton Bell Property Mandurah. “Buyers priced out of the metro market now looking further south for entry-level homes and improved lifestyle options.”
FIFO workers and families alike are drawn to coastal suburbs with space and value, while Bunbury has seen demand increase due to better road links and hybrid working arrangements.
In Dunsborough, prices soared 27% in a year.
“It used to be that it was mostly holiday homes down here,” said Garry Morris of LJ Hooker Property South West. “But I’m actually finding a lot of those holiday homes are now being bought by people who are moving in and residing here.”
