Late 2025 has delivered an unexpected storyline in Australian real estate: mid-tier property markets are punching above their weight. While Sydney and Melbourne often dominate headlines, it’s the smaller capitals and regional cities that are fueling growth as the year winds down. Recent data from Domain and REA Group underscore how these “quiet achievers” are leading on price gains, buyer interest, and even listings, offering valuable insights for agents across the country. Below, we explore the trends and practical observations – from rebounding listings to booming inquiry in certain suburbs – and how agents can stay agile in these less headline-grabbing locations.
Smaller Cities Leading Price Growth in Late 2025
House prices in many mid-tier markets have surged to record levels in 2025, outpacing the traditional frontrunners. Domain’s September Quarter House Price Report showed that the strongest quarterly house price rises were in the smaller capitals – Darwin jumped 5.3% and Hobart 4.7% in just three months. Brisbane also saw a hefty 3.7% house price gain for the quarter (up 10% year-on-year), even topping Sydney’s growth rate. This momentum has reshuffled the national housing hierarchy. Brisbane has now overtaken Melbourne as the second-most expensive housing market, and Perth is on the cusp of a $1 million median house price. In the unit market, Adelaide’s affordability advantage evaporated as it leapt to become the third-priciest unit market nationally within a few short years.
Crucially, these smaller capitals have been the country’s growth engines through 2024–25, supported by population inflows, strong local economies, lifestyle appeal, investor demand, and tight supply. An agent in Brisbane, Adelaide, Perth or Darwin likely felt this tailwind – rising prices boosting seller confidence and buyer competition. However, Domain’s analysts also caution that leadership may rotate back to Sydney and Melbourne as interest rate cuts take effect and earlier high-growth markets start to stabilize. In other words, today’s mid-tier boomtown could level out tomorrow, so maintaining a data-driven perspective is key.
Listing Activity Rebounds Outside the Big Two
Another sign of confidence returning to these markets is a rebound in listing activity in many areas beyond Sydney and Melbourne. Spring 2025 has seen more homeowners in smaller cities decide it’s time to sell, providing fresh opportunities for agents. For example, Adelaide’s new listings hit a one-year high this October, giving buyers more choice yet hardly denting competition. Brisbane and Perth also notched their highest influx of new listings in months – in Perth’s case, new stock rose to a seven-month peak, though total supply remains near record lows for the season. Even Hobart enjoyed a lift in seller activity (a seven-month high in new listings), while Darwin’s listing volumes are up compared to last year.
For agents, this uptick in listings signals growing seller confidence in mid-tier markets – a welcome change after the lean supply of recent years. More listings mean more potential business, but also a need to manage buyer expectations as choice slowly broadens. Importantly, the increased stock hasn’t flipped these markets into oversupply; in many cities the total listings are still below last year’s levels despite the spring surge. That suggests demand is rising in tandem, keeping conditions competitive. Auction clearance rates and days-on-market data back this up – Adelaide, for instance, saw its fastest sales pace of the year even as new supply grew. Agents in these cities should be prepared for a busier end-of-year selling season, with an eye on balancing new inventory against still-strong buyer demand.
Buyer Interest Shifts to Affordable Suburbs and Regions
One of the most striking late-2025 trends is a surge in buyer search activity in more affordable areas, many of them well outside the biggest metros. According to REA Group’s PropTrack data, about 70 suburbs nationwide have seen search volumes more than double compared to a year ago, concentrated in regional cities and outer suburban belts where prices are relatively affordable. For example, regional centres like Wagga Wagga (NSW) and Bendigo (VIC) are experiencing an explosion of interest. In several Wagga Wagga suburbs, buyer searches have jumped three- to six-fold year-on-year – an astonishing rise in inquiry that points to looming demand. Bendigo and Ballarat are seeing similar spikes, fueled largely by investors and first-home buyers chasing lower price points.
Even some smaller capitals and their outskirts are sharing in this trend. Darwin suburbs have recorded double the number of buyer searches compared to last year, buoyed by investor demand. Outer-ring suburbs of Newcastle and Brisbane have likewise seen interest swell as house-hunters seek better value on city fringes. What’s driving this shift? Easing interest rates and tight rental markets have lured more buyers back in, especially investors who are enticed by the higher yields available outside the big cities. Many interstate investors have pivoted to these “underdog” locations after the hottest markets (like Perth, Adelaide and Brisbane) notched huge gains and started to cool slightly. Meanwhile, government initiatives like the expanded First Home Guarantee (allowing 5% deposits) are helping first-home buyers turn their attention to outer suburbs where their dollars stretch further.
For agents, this dispersion of demand means new hotspots to watch. It’s worth monitoring inquiry levels on your listings in traditionally quieter suburbs – you might find interest is picking up momentum where it wasn’t before. High online search activity often foreshadows an uptick in enquiries, inspections and, eventually, sales, especially if local supply is slow to respond. Savvy agents are already capitalizing on these patterns: those in Wagga Wagga, for instance, report an influx of investor buyers (many using self-managed super funds) snapping up homes in suburbs that barely registered on the radar a year ago. Keeping an eye on such data can help you position your marketing and advice, ensuring you’re ready when a once “sleepy” area suddenly becomes a hive of buyer interest.
Staying Agile in Less Headline-Grabbing Locations
Success in 2025’s surprise markets requires agility and local savvy – especially for agents operating outside the media spotlight of Sydney and Melbourne. While the broader trends are encouraging, conditions can vary greatly from one town to the next, so it’s crucial to adjust strategies to your market’s reality. Not all regional or mid-tier markets are booming uniformly; some are thriving quietly, while others face headwinds after a period of hype. Staying agile means reading those shifts early and adapting accordingly.
Consider two very different scenarios: Townsville vs Daylesford. In Queensland’s regional city of Townsville, a mix of affordability and genuine economic drivers has made it one of the nation’s strongest performers of late. With a median house price around $653,000 – far below the capital city median – Townsville logged growth in the top tier nationally, thanks to its blend of coastal lifestyle and steady employment from defence and mining sectors. Analysts note that Townsville exemplifies the kind of market now leading the next wave: places offering both lifestyle appeal and jobs, rather than just being pretty holiday spots. An agent in Townsville (or a similar city like Bundaberg or Geraldton) should leverage these strengths in their pitch to buyers and sellers: emphasise the robust local economy and relative affordability driving demand, which adds credibility to price growth projections without veering into hype.
On the other hand, some formerly hot getaway markets have cooled, requiring a shift in tactics. Real estate coach Josh Phegan observes that in certain regional areas heavily reliant on outside buyers, activity has slowed now that the pandemic-era “wealth effect” has faded. Daylesford in country Victoria is one example he cites: roughly 85% of listings there have sat on the market for over 90 days (many for more than 180 days) – a stark contrast to an inner-Sydney suburb like Balmain, where virtually no listings linger that long. In such locations, agents need to proactively prevent stagnation. This could involve frank conversations with sellers about pricing, creative marketing to refresh stale listings, or tapping into past buyer inquiries to rekindle interest. Phegan suggests using tools like local listing age data (e.g. SQM Research charts) to gauge when your market is flooded with stale stock, and then taking action – even re-listing properties to give them a “new” tag if necessary. The key is to recognize when old strategies aren’t working. If your area isn’t benefiting from a spontaneous surge of buyers, you may need to create your own momentum through targeted outreach, sharper pricing, and by highlighting value in ways that resonate with budget-conscious local buyers.
Key Takeaways for Agents
Mid-tier markets in late 2025 offer a dual lesson. First, don’t underestimate Australia’s smaller cities and regional hubs – they have been the surprise packet of the property cycle, delivering growth and activity that rivals (and at times exceeds) the majors. Tapping into this trend means staying informed: follow the data from sources like Domain and PropTrack to see where prices are climbing, stock is tightening, or buyer clicks are rising. Second, local nuance is everything. As an agent, being agile means tailoring your approach to your patch’s conditions. Whether you’re riding a quiet boom in a city like Hobart or Townsville, or navigating a post-boom slowdown in a coastal haven, success comes from reading the play and acting decisively. Keep an eye on listing levels, days on market, and buyer sentiment on the ground. Those metrics will tell you when to push harder and when to pivot.
Finally, maintain a balanced, professional tone with clients when discussing these trends. The brief surge of a mid-tier market is exciting, but avoid overly bullish promises. Instead, cite the solid factors at play – improved affordability, returning confidence, population growth, or infrastructure projects – to explain why these areas are performing well. And acknowledge that cycles turn; part of being agile is planning for when today’s growth spot eventually cools. By combining up-to-date insight with adaptable strategies, agents can thrive even in locations that aren’t splashed across the front page – often finding great opportunities where others aren’t looking.
Sources:
- https://australianpropertyupdate.com.au/apu/housing-boom-has-arrived-domain
- Australia’s Property Markets Are Sending a Clear Message – Confidence Is Back | Domain’s October Market Insights
- Buyer searches have surged in these suburbs – are prices about to jump higher? – realestate.com.au
- Thought Provoker – Movers And Shakers – Mastering 2025. – Josh Phegan – Real Estate Training For High Performance Agents
- Real Estate News, Leadership & PropTech for Agents | Elite Agent