The most in-demand suburbs across each capital city and region

In recent months the dial has shifted in favour of buyers, as rising interest rates and increased supply take some heat out of the market.  

But some suburbs are still highly sought after, seeing double, triple, up to seven times the number of potential buyers, compared to the median in their capital city or region. 

Jump to see the most in-demand suburbs in each state and territory

In a cooling market, PropTrack economist Anne Flaherty said the suburbs that continue to see higher levels of demand are likely to prove more resilient to price falls, compared to other areas.  

“At a whole-of-market level, we've been seeing price declines over the last few months in line with interest rate rises,” she said. 

Buderim on Qld’s Sunshine Coast is in high demand with buyers. Picture: realestate.com.au

“Where you tend to see a higher volume of highly engaged buyers looking, that means that all else equal, you have more competition in those suburbs.

“When you see more competition, you tend to see more pressure on prices.”

Use the interactive map to see how in-demand your suburb is

Suburbs were ranked in order of where serious buyer numbers were most elevated, compared to the median number in their Greater Capital City Statistical Area (GCCSA).

A ‘serious’ or ‘highly engaged’ buyer is someone who is likely close to making a purchase, based on their activity on realestate.com.au.

“These are the kinds of buyers that are returning to listings multiple times, reaching out to agents, and organising inspections,” Ms Flaherty said.

Where are the most in-demand suburbs?

Ms Flaherty said lifestyle suburbs that had surged in popularity during the pandemic were still seeing strong demand.

But when splitting houses and units, she noted some interesting trends had emerged.

“If we start with houses, the suburbs that are most popular tend to be those that were still the most popular during the pandemic,” she explained.

“Those lifestyle suburbs, often in regional areas, or maybe within greater metropolitan areas that are still close to natural parks or the ocean.”

Units, on the other hand, have experienced a significant demand shift. 

“So, whereas everyone was leaving the inner city to move out during the pandemic, we're now seeing this renewed demand for units closer into central business districts,” Ms Flaherty said.

“Within CBDs themselves, we've seen really high levels of demand. And then also those city fringe suburbs are also seeing really strong demand, and I think we can attribute that, in part, to the return of international students and migrants,” she said.

Given migration numbers are still below pre-pandemic levels, Ms Flaherty said demand in those CBA areas would grow as international activity recovers.

Jump to the most popular suburbs in

• Victoria

• Queensland

• NSW

• Western Australia

• South Australia

• Tasmania

• ACT

• Northern Territory

Each state and territory has been divided into greater capital city and regional area. Here’s what the data found.

Melbourne stages a post-covid comeback

Having faced Australia’s harshest lockdowns during the pandemic, fed-up Melburnians left the city en masse. But with restrictions now a distant memory, Ms Flaherty said demand for the Victorian capital is back.

“What stood out to me was the fact that in Victoria, the City of Melbourne had the most highly engaged buyers, and this represents a real shift from what we were seeing a year ago,” she said.

“Vacancy had soared in Melbourne’s CBD; a lot of investors lost their confidence in the Melbourne CBD market.

“But since that time we've seen vacancy rates come right down, rents are beginning to grow again and we're seeing property buyers recover that confidence,” she said.

Over the year to August, 72,000 highly engaged buyers looked for a unit in Melbourne’s CBD, the highest number of highly engaged buyers nationally, and 807% more than the Greater Melbourne median of 7,948 buyers.

Ms Flaherty said it’s a sign of recovery in the city that was “arguably hit hardest by Covid.”

Units in South Yarra and St Kilda both recorded a more-than 400% premium in demand compared to the city median.

Melbourne's CBD is back in demand after a tough couple of years. Picture: Getty

For houses, Berwick on Melbourne’s southeast fringe had 47,853 highly engaged buyers, 306% more than the city’s median of 11,793 serious buyers.

Outside of the capital, Ocean Grove on Victoria’s picturesque Bellarine Peninsula was the most in-demand suburb for units and the second most in demand for houses, behind Geelong’s Highton.

Queensland: Homebuyers still flocking to the Sunshine State

Buderim on the Sunshine Coast took out the top spot for houses with 40,377 highly engaged homebuyers over the year to August, 670% more than regional Queensland’s median.

Location, lifestyle and stunning views make the suburb a regular on buyer wish lists, Ms Flaherty said.

“It's not too far of a drive from Maroochydore so it's a strategic location in the sense that it's close enough to bigger town centres while still having that small town feel,” she said.

Local real estate agent and auctioneer Grant Smith from Century 21 said the suburb appeals to young families through to retirees.

“In any changing market over my 21 years in real estate we have always seen strong demands for Buderim,” Mr Smith said.

While buyer demand remains strong, Mr Smith said there’s no doubt it peaked between December 2021 and February this year.

“Buyers are more cautious of making a decision quickly however are still committed to purchasing if the sellers’ expectations align with what they are prepared to pay,” he said.

“Move-in ready, new or renovated homes are attracting the strongest demand where buyers can just move in and enjoy.”

The Gold Coast remains popular with both house and unit buyers. Picture: Getty

Aside from Buderim, the rest of regional Queensland’s top ten most in-demand suburbs for houses were located on the Gold Coast, which also dominated the top ten list for units.

Over the past year, 58,825 highly engaged buyers looked for a unit in Surfers Paradise, a whopping 1,562% demand premium compared to the regional Queensland median. Nearby Southport recorded 836% more than the regional average.

Ms Flaherty said unlike other states, units in regional Queensland were more in demand than in the capital.

“The demand is still very much in those lifestyle areas, your Gold Coasts, your Sunshine Coasts, and I think part of the reason for that is to do with the fact that we have seen that population shift moving from the southern states up north,” she said.

In Brisbane, demand for inner-city apartments soared with 592% more serious homebuyers looking over the past year than the capital city median.

New Farm and Kangaroo Point also recorded strong demand, with 418% and 405% more serious buyers compared to the city median.

Lifestyle suburbs dominate in New South Wales

Regional locations close to the beach or offering appealing lifestyle amenities remain in high demand in NSW.

Port Macquarie on the NSW mid-north coast was the most in-demand regional suburb over the past year, with 517% more highly engaged buyers compared to the regional average.

Banora Point on the NSW Northern Rivers followed, with a 356% demand premium. 

Ms Flaherty said affordability was a key driver in Australia’s most expensive state.

“Because of affordability constraints, regional areas still present a more affordable option than, say, a middle ring [capital city] suburb would,” she said.

Coastal cities were also in high demand for units, with Wollongong on the NSW south coast recording an 823% demand premium compared to the regional average, followed by Port Macquarie (439%) and Tweed Heads (369%).

In Sydney, the most sought-after suburbs were located on the city’s outer fringe, with larger homes on big blocks.

Castle Hill in Sydney’s hills district recorded 28,438 highly engaged buyers over the year to August, a 326% premium compared to the capital city median.

Homes with large backyards like this one in Castle Hill have surged in popularity during the pandemic. Picture: realestate.com.au

Units in Ryde on Sydney’s lower north shore had 19,443 highly engaged buyers looking for property over the 12 months to August, up 260% compared to the city median. Sydney’s CBD and Parramatta rounded up the top three for units.

Parramatta real estate agent Aaron Lih from Stone said planned investment in infrastructure and amenities would underpin demand into the future.

“Parramatta is an up-and-coming suburb, buyers love the city life without having to pay ridiculous prices like in the CBD, investors also buy into the potential growth of Parramatta as well, labelled as Sydney’s second CBD,” Mr Lih said

Perth: Beachside living is best in the west

Nine out of the top ten most sought-after suburbs in regional WA were located close to water.

Margaret River, famed for its array of wineries, bushland and nearby beaches was the most in-demand suburb. More than 11,000 highly engaged buyers were looking for a house in Margaret River over the year to August, 530% more than the regional median. 

Dunsborough, Australind and West Busselton were also highly sought after by buyers looking for a house.

In the capital city, the semi-rural suburb of Baldavis on Perth’s southeast fringe was most in-demand with 23,785 serious homebuyers looking over the year, a 277% surge compared to the city’s median.

Like other capital cities, demand soared for inner-city units with five times the number of highly engaged buyers in Perth’s CBD, compared to the city’s median.

Scenic suburbs sought after in SA

South Australia’s stunning coastal towns of Victor Harbor and Encounter Bay had triple the number of highly engaged buyers compared to the regional median. As did Murray Bridge (253% demand premium) located on the banks of the Murray River.

But it was Mount Gambier, a gateway city between the SA and Victorian border, that recorded the highest demand premium across the state. More than 13,000 serious homebuyers looked for a house in Mount Gambier over the past year, 373% more than the regional SA median.

Local real estate agent Bianca Taylor from The Property Co. said lifestyle and affordability were major drawcards.

“We are only 20 minutes to a number of beautiful beaches and a short drive to more rural locations, bushland areas for camping and finishing,” she said.

Ms Taylor said demand remained strong, although had fallen from the elevated levels seen last year.

“The demand is not quite as high as it was 6-12 months ago however we are still negotiating with anywhere between 6 and 15 buyers per property. The demand is still outweighing the supply,” she said.

Regional locations like South Australia's Mount Gambier remain popular. Picture: Getty

Scenic suburbs in Adelaide also remained popular, with houses in Morphett Vale and Hallett Cove on Adelaide’s southern coast recording the biggest demand premium compared to the city median.

For units, inner city and beachside suburbs dominated the list. Almost 30,000 highly engaged buyers sought a unit in Adelaide’s CBD over the past year, up 622% compared to the capital city median.

Tasmania’s north appeals to homebuyers

Devonport on Tasmania’s north coast was the most in-demand suburb across the territory, with three times the number of highly engaged buyers looking for a house compared to the regional median. It also ranked second for units, with a 74% demand premium.

Devonport real estate agent James Leslie from Hudson365 said a lack of properties for sale indicated demand will remain elevated.

“Devonport and the greater region look to be positioned to maintain strength in the market over the foreseeable future simply due to a lack of stock and still an abundance of buyers looking to break in,” Mr Leslie said.

“The market has stepped back slightly since the beginning of the [RBA interest rate] increases but buyer demand is still very strong and there is still a lack of supply driving the coastal real estate industry.”

Nearby Trevallyn, Riverside and South Launceston all recorded a demand premium of 150% compared to the regional median for houses.

In the capital, demand for houses was also strongest in picturesque coastal suburbs, such as Kingston, with 12,503 highly engaged buyers – up 145% compared to the capital city median.

Sandy Bay and Howrah also recorded more than double the number of highly engaged buyers compared to the city median.

Outer fringe suburbs dominate in the Australian Capital Territory

Affordability is a key driver of demand in the ACT, according to local real estate agent Karen Brill from the Independent Property Group.

Surrounded by nature reserves and hiking trails, Kambah offers buyers an outdoor lifestyle while still being within an easy commute to the city, she said.

“Kambah is one of the largest suburbs in Canberra, buyers are drawn to Kambah as it offers an affordable price point,” Ms Brill told Mortgage Choice.

“I am finding buyers are looking for larger homes for their growing families and the convenience of the location to the recreational walking tracks.”

Houses in Kambah had 5,620 highly engaged buyers over the past year, 168% more than the ACT median.

“Buyer demand is still there,” Ms Brill said. “I have noticed that the buyers are still buying, [it’s] just that their budgets have changed with the increase of interest rates.”

For units, Braddon was the most in-demand suburb across the ACT, followed by Belconnen and Kingston, all recording a demand premium of more than 130%.

Northern Territory: Buyers stay close to the city in the Top End

The inner-city trend continues in the Top End, with units in Darwin City recording 247% more highly engaged buyers than the city median over the past year.

For houses, Leanyer in Darwin’s north had the highest number of highly engaged buyers in the capital.

Outside of Darwin, Gillen in Alice Springs was most in demand, with 1,766 highly engaged buyers looking for a house over the past year – up 71% compared to the regional median of 1,035.