The price ‘signal’ driving Australia’s fast-moving suburbs

Buyers priced out of a freestanding home are rapidly turning to apartments, townhouses and villas in the country’s hottest property markets, sending unit prices soaring in recent months.

Analysis of the top performing suburbs over the December quarter has revealed units make up an overwhelming proportion of Australia’s fastest moving markets.

The quarterly figures – which rank a suburb’s property market performance for both houses and units according to PropTrack's automated valuation model (AVM) – found units account for three quarters of the top 50 suburbs nationally.

Hundreds of suburbs recorded double-digit price growth in the December quarter alone, though PropTrack senior economist Eleanor Creagh noted one clear theme stands out.

“The fact that three quarters of the top performing suburbs last quarter were unit markets is an affordability signal,” Ms Creagh said.

“With prices having risen significantly in recent years, buyers are being pushed toward lower price points.

“This has bolstered demand in the unit market, particularly from first-home buyers and investors, pushing up prices.”

Most of the top performing suburbs last quarter were driven by unit prices. Picture: Getty

---

As units are typically cheaper than houses, a more modest dollar increase can translate into a larger percentage gain, she noted.

Jump ahead to see the top 10 suburbs in each state.

National home prices reached a new record high in December, PropTrack data shows, with Adelaide, Perth and Brisbane continuing to see strong monthly momentum. Home values in these capital cities are predicted to continue outperforming over 2026.

While suburb data can be volatile on a quarter-to-quarter basis, Ms Creagh said when strong quarterly growth lines up with fundamentals like tight supply, affordability advantages and strong rental demand, it becomes a useful signal for price momentum.

Many of the top suburbs last quarter have also seen strong annual price growth. Picture: Getty

---

Most of the fastest growing suburbs in the December quarter were located in Western Australia and Queensland, a reflection of the strong momentum in these markets over the past few years.

“Even after significant gains, demand continues to outpace supply in Perth and southeast Queensland,” Ms Creagh said.

“Growth is concentrated where affordability and demand are intersecting within the unit market and more affordable regions.”

In the most populated states of NSW and Victoria, Ms Creagh said affordability constraints are pushing more buyers to outer city and regional satellite locations, with buyers “likely trading location and dwelling type for price.”

Hot competition pushing more buyers into units

The fastest growing suburb across the country was Jolimont in Perth’s inner west, where unit prices rose 23% during the December quarter to a median of $695,000.

Annually, unit prices in Jolimont have soared 30% as supply fails to keep up with demand - of the four properties currently listed for sale on realestate.com.au, only one is not under offer.

Jolimont in Perth has very few properties listed for sale. Picture: realestate.com.au

---

Ellenbrook and Clarkson on the northern fringes of Perth, and Glendalough in the inner city, all saw unit prices jump more than 20% in the December quarter, taking annual price growth well above 30%.

Jump ahead to see the fastest growing suburbs in:

• NSW
• Victoria
• Queensland
• Western Australia
• South Australia
• Tasmania
• Northern Territory
• ACT

10 fastest growing suburbs in Western Australia

But despite the rapid pace of price growth in these states, property experts don’t see prices slowing down any time soon.

In fact, Ellenbrook was recently named in the realestate.com.au Hot 100 for 2026, which identifies the suburbs best positioned to outperform in the year ahead.

Nominated by LJ Hooker’s head of research Mathew Tiller for its affordability, infrastructure, family appeal and amenity, Ellenbrook has already seen unit values soar 38% in the past 12 months.

“It already had schools, shopping and community services, and transport was the missing piece,” Mr Tiller said, noting a long-awaited rail extension (which opened last year) now connects the suburb to Perth’s CBD in about 30 minutes.  

“That shift has lifted confidence for both first-home buyers and investors chasing rental demand.”  

Brisbane and regional southeast Queensland also recorded strong quarterly price growth, led by houses in Sunshine Beach (+23% q/q) and units in Logan Central (+19%) and Little Mountain (+18%).

10 fastest growing suburbs in Queensland

Logan Central – another pick for this year’s Hot 100 – has already recorded annual unit price growth of 31%, with investor interest likely to keep upward pressure on prices according to Ray White chief economist Nerida Conisbee.

“High rental yields, urban renewal initiatives, and expanding transport connections have lifted its profile as a growth market,” Ms Conisbee said.   

“The area continues to attract attention from investors seeking value and future capital appreciation potential in South East Queensland.”

View all 100 suburbs to make the realestate.com.au Hot 100 for 2026 here.

Investors and first-home buyers look regional

While many of the top performing suburbs nationally are located in states where price growth has been exceptional in recent years, Ms Creagh said the data is reflecting the same theme in each state.

“The suburb data points to increasing competition in affordable markets, where investors and first-home buyers are typically active,” she said.

“Rental market conditions continue to support investor demand and policy support for first-home buyers is further concentrating activity at the lower end of the price spectrum.”

Unit values in Tweed Heads have risen sharply in the past quarter, and are up around 20% in the past year. Picture: realestate.com.au

---

In NSW, the top suburbs of the past quarter were driven by units in Sydney’s outer fringe, and houses and units in regional areas, such as Heathcote in Sydney's Sutherland region, Miller near Liverpool and Tweed Heads on the NSW/Queensland border.

Values not only recorded double-digit quarterly growth, but sharply outperformed their capital city or regional benchmark on an annual basis too.

Using the PropTrack Home Price Index to compare these suburbs against the broader market, Sydney house values rose 6.9% and units rose 5.3% over the 12 months to December, while regional house value gained 8.1% and units rose 6.9%.

10 fastest growing suburbs in NSW

Real estate agent Sophie Carter who has lived and worked in the Tweed region her whole life told realestate.com.au the area had undergone rapid gentrification and was now attracting downsizers and first-home buyers from the Gold Coast due to its relative affordability and lifestyle.

"It's not too busy, and it's flat for them to walk or ride everywhere," Ms Carter said. "If it's sub-$1.5m, you could do an open home on an apartment through Tweed Heads and there's a minimum of 20 groups of people coming through. I just can't see that slowing down.

"And then also sub-$1m, the first-home owners are coming through so I think while there's a few incentives that will still continue, there's really good value for money on the Tweed Head side."

Tweed Heads is attracting buyers from the Gold Coast due to its bang-for-buck housing and lifestyle offering. Picture: realestate.com.au

---

She said the unit market had outperformed compared to houses in the past year.

"There's smaller boutique developments, you've got the great big [apartment blocks], and then the old ones are so well built, double brick, high ceilings with a bigger floorplan."

"It's not necessarily people moving up from Sydney and Melbourne that are the ones buying through Tweed, it's actually people who are on the north end of the Gold Coast. What they're telling me is that it's much better value for money coming just further south."

Victoria and Tasmania were the only states and territories to see houses dominate their top ten list over units, with strong competition for affordable freestanding homes pushing up values in regional locations including Bendigo, the Latrobe Valley, and outer Hobart.  

10 fastest growing suburbs in Victoria

Real estate agent Nekti Tzouroutis from the Bendigo region said competition was strong between investors and first-home buyers due to the relatively affordable homes and an extremely tight rental market.

"There's out of town investors that are seeing good value and growth in our city here," Mr Tzouroutis said.

"As of Monday, our office's vacancy rate was 0.02% so there's a lot of appetite for investors coming in to purchase good quality homes, to get good quality tenants in there too."

Victoria's Bendigo region is in strong demand with first-home buyers and investors. Picture: realestate.com.au/sold

---

He said the volume of enquiries from buyer's agents has exploded since early to mid 2025.

"Personally, I was getting 25 to 30 calls a day off different buyer's agents around the country, and that's not exaggerating," he said.

"I can tell you the market in Bendigo for the next six to 12 months, in my opinion, is going to be as buoyant as what it has over the last 12 to 15 months."

Suburbs like California Gully, Ironbark, North Bendigo and Jackass Flat have seen their house values jump around 20% in the past year, following strong momentum in the December quarter.

10 fastest growing suburbs in South Australia

10 fastest growing suburbs in Tasmania

10 fastest growing suburbs in Northern Territory

10 fastest growing suburbs in ACT