Brett Warren , National Director – Metropole Group
Australia’s housing market staged a powerful rebound in 2025, defying affordability pressures to deliver above‑average growth.
Cotality’s Best of the Best 2025 report highlights the suburbs and cities that led the way, offering valuable insights for both homebuyers and investors.
Sydney once again proved its prestige power. Point Piper retained its crown as the nation’s most expensive suburb, with a staggering median house value of $17.3 million and units above $3.1 million.
Mosman also stood out, recording the highest total value of house sales nationally at $1.58 billion across 229 transactions, which is perhaps not surprising given its high buy-in price. These results underline the resilience of Sydney’s premium enclaves, which remain insulated from economic ups and downs.
Melbourne delivered more measured but still important results, according to the report. While not topping the national growth tables, its outer suburbs continue to provide accessible entry points for homebuyers and investors.
Affordable areas around Greater Melbourne offered opportunities for those navigating tighter credit conditions, with steady demand supported by transport links and lifestyle appeal. For investors, Melbourne’s balance of affordability and long‑term fundamentals makes it a market to watch.
Brisbane emerged as one of the standout capitals, joining Perth as a top performer in 2025. Unit markets across Queensland surged, with Cranbrook values up 29.3% and Wilsonton rising 26.9%, according to the research.
Rockhampton City also recorded one of the strongest rent increases nationally, with unit rents up 21.1%. Brisbane’s affordability advantage, combined with strong interstate migration, helped fuel demand across both houses and units, cementing its position as a growth leader.
While Western Australia produced headline growth in suburbs like Kalbarri (up 40.2%) and Mandogalup (up 33%), and Darwin posted a 17.1% capital‑city rise, the broader story for investors lies in the east coast capitals.
Melbourne’s accessible suburbs and Brisbane’s surging unit markets are where affordability, migration and lifestyle demand are converging most strongly.
For homebuyers and investors, opportunities exist across the spectrum. Sydney’s prestige enclaves continue to command record values, Melbourne offers steady affordability plays, and Brisbane is delivering some of the strongest growth and rental returns in the country. Looking ahead to 2026, growth is expected to be more measured as borrowing capacity and affordability pressures re‑emerge but plenty of opportunities will remain for homebuyers and investors.
