2025’s Best Property Performers

Australia’s housing market has achieved above-decade-average growth throughout 2025.

Cotality’s annual Best of the Best report shows that nationally dwelling values will likely finish 2025 at least 8% higher.

Cotality Australia Head of Research, Eliza Owen, says that although many markets started 2025 under considerable affordability pressure, prices kept rising.

“Interest rate cuts, easing inflation and limited supply reignited competition,” she says.

She says that tight supply meant even modest demand created upward pressure on prices.

“Cheaper markets had the most acceleration because they remained within reach for buyers navigating higher living costs,” she said.‍

The gap between affordable and premium markets widened even further, with Australia’s top median house value now $17.3 million at Point Piper in Sydney. The most affordable capital-city suburbs for houses are in Greater Hobart, including Gagebrook, Herdsmans Cove and Bridgewater, all with medians of less than $450,000.

Owen says market conditions will be more restrained in 2026 as borrowing capacity, affordability and credit assessments place limitations on demand.