House prices across Australia are hitting new peaks, with both capital cities and regional areas seeing significant growth. According to PropTrack’s Home Price Index, prices grew by 0.5% in September, bringing the yearly increase to a notable 6.3%. This surge has pushed house prices higher than they were a year ago, signaling a broader uptick in market activity.
The Rise of Multimillion-Dollar House Suburbs
In New South Wales, several suburbs have broken the $2 million barrier this year. Belfield surpassed the median price in May, followed by Londonderry in August and Hurstville in February. Current typical house prices in these areas are $2.03 million, $2 million, and $2.06 million, respectively. Leichhardt also joined the club in May, with the median price now sitting at $2.05 million.
Queensland saw a blend of metropolitan and regional suburbs hit the $2 million milestone in 2025. In Brisbane, places like Brookfield, Hendra, Highgate Hill, and Paddington saw their median house prices cross the $2 million mark between January and August this year. Regional Queensland suburbs, including Coolangatta, Mermaid Waters, and Sunrise Beach, also reached this milestone.
Further west, Western Australia’s suburbs are seeing the same trend. In Perth, Coolbinia, East Fremantle, and Shenton Park joined the ranks of multimillion-dollar areas, with properties in these suburbs surpassing the $2 million threshold between March and June. Additionally, North Coogee and Trigg added to the list as house prices in these suburbs soared past $2 million. South Australia also saw growth, with suburbs like Netherby and Somerton Park breaking the $2 million mark.
These suburbs have grown by over 30% in the last year, with current median prices at $2.23 million and $2.09 million. The $3 million price bracket is still relatively exclusive but is expanding, particularly in Sydney and Perth. Suburbs like Crows Nest and Gladesville in Sydney saw their median house prices surpass $3 million for the first time in April and June. In Perth, City Beach joined the ranks, with a current median of $3.06 million, details The Australian.
Interest Rate Cuts Fueling the Market
The recent trend of rising house prices is partly due to three interest rate cuts this year, which have boosted the borrowing capacity of potential buyers and improved affordability. As a result, market sentiment is more positive, leading to increased demand from buyers. According to Westpac’s September House Price Expectations Index, the share of Australians expecting house prices to rise is at its highest level in 15 years. This optimistic outlook, combined with potential further interest rate cuts in 2025, suggests that home prices may continue to climb.
Given the current momentum in the housing market, it’s likely that more suburbs will join the $2 million and $3 million price brackets in the near future. As buyer demand increases and interest rates remain favorable, the trend of rising property prices is expected to continue across the country, making these suburbs even more sought after.
