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Which suburbs had the strongest growth in 2025

According to PropTrack published data, Sydney’s median housing prices only rose by 5.8% during 2025 while growth in Melbourne was just 4.8%.

Yet, as the table shows, much stronger price growth occurred in Sydney and Melbourne’s cheapest suburbs and this trend was repeated in every capital city. Last year’s best performers were the most affordable suburbs!

As the housing shortage intensifies, asking rents are surging, offering investors high rental yields that have been out of reach for years. An investment property secured in the right location this year can generate positive cash flow from day one, but although cash flow keeps you in the game, your goal should always be strong price growth to build wealth for the future. Because it can be difficult to find locations which offer both strong cash flow and price growth potential, we’ve done the hard work for you, researching over 16,000 suburbs and towns in Australia and New Zealand to reveal those with strong cash flow, price growth potential for the future and the highest current rental yields.

John Lindeman's Cash Cow Suburbs - Lindeman Reports Get positive cash flow right now AND price growth potential for the future! John Lindeman’s Cash Cow Suburbs with Potential Report – now available.

The cheapies are set to boom

While the latest property data indicates that median housing prices in Sydney and Melbourne are falling, prices in many of the most affordable suburbs have actually been rising strongly, fueled by the government’s 5% deposit guarantee scheme.

Our highly accurate predictive database shows that around eighty suburbs in New South Wales and another fifty in Victoria have boom potential over the next twelve months. Growth in the most affordable suburbs is not over, but about to accelerate.

The cost of delay

When housing prices are rising, the cost of delay quickly accelerates. The latest property data confirms that prices in many of our more affordable locations are rising strongly, as first home buyers empowered by the government’s five percent deposit guarantee scheme are competing to buy the bargains.

The issue is that in such hot markets, the longer they wait, the more the delay costs them, a classic case of FOMO feeding the market.

Melbourne's unit prices have a huge amount of catching up to do

According to PropTrack, two bedroom units in the Melbourne CBD have the lowest median value at just $520,000 of ALL State capital city CBD markets.

The median value of a two bedder unit in Hobart’s CBD is $920,000 which is 77% higher than Melbourne, while in Brisbane CBD it is $825.000, nearly 60% more than in Melbourne.

In Sydney’s CBD, the median value for two bedroom units is $1,225,000, which is a massive 136% higher than that of Melbourne.

Either Melbourne CBD unit prices are set to boom, or two bedroom unit prices in the other capital cities are way over the mark and about to crash. Given the issues that have beset the Melbourne CBD unit market in recent years, the answer is obvious.

The importance of market driven growth

This graph illustrates the critical importance of choosing suburbs with strong market driven growth. Carrum and Tyabb are located in south-east Melbourne, about a twenty minute drive from each other. According to PropTrack, one year ago they shared the same median house price of $900,000.

Since then, house prices in Carrum have risen by around 20%, while in Tyabb they have gone backwards. Had you purchased a house in Carrum one year ago, the value of your property would now be $235,000 more than if you had bought in Tyabb. This shows us that market driven price changes can be hugely significant, even over short periods of time.

Our latest Cheapies Set to Boom report reveals Australia’s and New Zealand’s most affordable suburbs with strong imminent price growth potential.
It gives you a comprehensive and easy to read summary of one hundred and six suburbs set to boom – and where to find them.

Lindeman's Cheapies Set to Boom - Lindeman Reports John Lindeman’s Cheapies Set to Boom - Authored by leading property market expert, John Lindeman, this report reveals Australia’s most affordable suburbs with strong imminent price growth potential.

Presenting in New Zealand where I revealed areas with boom potential to an enthusiastic audience on the weekend.

This one’s on us
The prospect of further rate rises is leaving investors confused and unsure of what to do next.

 Should you hold or sell any of your properties?
 Will there still be areas with imminent growth potential?
 Where can you secure positive cash flow from day one?
 Don’t know where to start or what to buy?
 Unsure of the next steps to take?

Now you can have those burning questions answered by Australia’s leading property market expert, John Lindeman with a free, no-obligation telephone consultation. There’s no hype, no sell - just John’s answers to your most pressing questions.

Places are limited, so click on the link provided to secure yours.
https://lindemanreports.com.au/free-consultation/
This offer is limited to new applicants only.

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