Thinking of buying into the Australian property market? Whether you're hunting for growth or trying to avoid a slowdown, the latest numbers reveal which regions are on fire and which ones are fizzling out.
After years of rollercoaster housing trends, Australia’s real estate market is showing signs of both resurgence and retreat. Interest rate cuts are finally breathing life into previously overlooked suburbs, while once-booming hotspots are beginning to level out or worse, decline.
Whether you’re looking to buy home in Australia, invest in a growth suburb, or simply avoid overpaying in a cooling market, here’s what the latest data tells us about where prices are rising (and where they’re not).
Where house price growth is accelerating
Thanks to improved borrowing conditions and renewed buyer confidence, certain regions are showing a clear rebound.
Top performers this quarter:
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Newcastle and Lake Macquarie (NSW): +3.6% in 3 months, +6.9% in 12 months — the strongest growth in the country.
Newcastle tops the nation in recent house price growth, with a Merewether three-bed home selling for $2.521 million. (Source: realestate.com.au)
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Sydney - Inner West: +2.7% (quarterly), backed by strong demand for premium inner-city homes.
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Sydney - South West: +2.2% in 3 months, +5.7% over the year — affordability and family-friendly amenities are driving demand.
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ACT (Canberra): After a quiet period, Canberra is regaining momentum with +1.7% quarterly growth.
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Parramatta: +2.2% in 3 months, reflecting a renewed appetite for central Western Sydney.
In Victoria, Melbourne’s inner and north-west suburbs are starting to make a comeback. The Mornington Peninsula is also heating up again, with +2.8% house price growth in the last 3 months.
“Melbourne is finally catching up after years of lagging behind,” said REA Group economist Eleanor Creagh. “It’s a classic late-cycle bounce, helped by improved affordability and market sentiment.”
Where unit prices are making a comeback
Apartments and units are seeing fresh interest, especially in coastal and lifestyle-friendly zones:
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Melbourne – Inner: +5.5% in 3 months (strongest unit growth nationwide).
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Illawarra: +4.9% over 12 months — outperforming even Sydney.
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Sydney – Northern Beaches: +2.6% quarterly growth.
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Geelong & Bendigo (VIC): Steady gains as regional hubs benefit from affordability and proximity to Melbourne.
House and unit price growth has cooled in Mandurah, Perth’s satellite city after years of sharp increases. (Source: realestate.com.au)
Where the market is cooling off
Not every region is riding the wave. Some once-sizzling markets are cooling either plateauing or beginning to reverse.
Slowing suburbs include:
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Mackay – Isaac – Whitsunday (QLD): -1.7% in 3 months despite a 9.3% yearly gain.
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Perth – North East (WA): -0.8% in 3 months for houses; units only slightly up.
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Mandurah (WA): Houses up only 0.7%; units down -0.8% — a sharp drop compared to last year’s highs.
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Melbourne – West (VIC): Units down -2.0% quarterly and -7.1% annually — the steepest fall of any capital region.
“Some of these cooling markets are simply stabilizing after years of rapid growth,” said Creagh. “We’re seeing natural slowdowns, not necessarily downturns.”
Townsville's price growth is still solid but has eased recently as investor interest declines. (Image: Getty)
What local agents are saying
Real estate agents from across Australia report a rise in buyer competition in some regions, particularly those with homes priced between $1.5M and $2.5M, the new "sweet spot" for freestanding homes.
In Newcastle, demand from both owner-occupiers and investors has picked up again, with investors drawn to strong rental returns and lifestyle appeal.
In Townsville, which still holds the top spot for annual house price growth (+20%), interest from interstate investors is tapering but local owner-occupiers are stepping in.
“We’re seeing homes take a bit longer to sell, but demand is still healthy,” said agent Jools Munro. “It’s good news for locals who have been locked out.”
What this means for you
Whether you're looking to buy home in Victorian suburbs with growing upside or invest in Australia real estate before the next price wave, knowing where the heat is and isn’t matters more than ever.
With markets shifting weekly, keeping an eye on quarterly growth data helps buyers make smarter, faster, and more informed decisions.
Because in this market, timing is everything.
