State battle: Who were the best performers in 2025?

Nationally, Cotality’s Best of the Best 2025 report showed that dwelling values would end the year higher than anticipated, while investor interest rebounded and rent values boomed.

The report showed that while performance varied across the country, high performers emerged in each state. Here are the top players of 2025:

NSW

Cotality’s report showed that Sydney’s housing market hit a cyclical peak in August before slowing into November, with growth easing as affordability pressures pushed demand toward lower-priced homes.

“Home values across Sydney are up 5.1 per cent in the past year. Regional NSW has had a stronger finish to the year, rising 2.6 per cent through spring and 6.2 per cent in the year,” it said.

It said that total stock levels had tightened significantly in the past 12 months, and demand was likely to continue to skew to more remote regions in 2026.

Sydney’s Point Piper took the title for most expensive suburb for all dwellings, with a median house price of $17,313,502 and a median unit price of $3,134,530.

The most affordable suburb for houses was Baradine in regional NSW, with a median house price of $201,990, while South Tamworth was the most affordable for units at $316,510.

Meanwhile, the highest 12-month change in house values was in Coolah, with a 25.6 per cent increase, while Orange had the highest annual change for units, recording a 19.9 per cent growth.

The lowest 12-month change in house values was in Abbotsbury, with a 10.7 per cent rise, while Kirribilli had the largest decline in unit values at -14.8 per cent.

Across the state, Condobolin recorded the highest gross rental yields for houses at 8.9 per cent, while Rosehill had the highest gross rental yields for units at 6.5 per cent.

Victoria

According to the report, Melbourne delivered modest gains throughout 2025, rising just 4.2 per cent across the year, the weakest of the capitals alongside the ACT.

Similarly, while regional Victorian home values outperformed Melbourne, rising 5.1 per cent in the past year, it recorded the lowest growth among regions outside Tasmania.

“Despite soft conditions, affordability remains a drawcard, underpinning strong first home buyer activity across the state,” Cotality said.

Across the state, Toorak took out the title for the most expensive suburb for houses, with a median price of $4,155,231, while Canterbury was the most costly suburb for units, at $1,464,918.

Victoria’s most affordable suburb for houses was Rainbow, with an average of $177,618, while Hamilton was the cheapest option for units with a median price of $272,631.

Merbein recorded the highest 12-month change in values, with growth of 26.2 per cent, while Golden Square, in Bendigo, showed the highest yearly change for unit values, with an increase of 24.4 per cent.

On the other end, Bright recorded the lowest change in house values over the year, with a decline of 7.5 per cent, and Carlton had the lowest change in units, with a 10.9 per cent decline.

Echuca, in the state’s Shepparton region, showed the highest gross rental yields for houses, with 7.9 per cent yields, while Carlton had the highest gross yields for units, with a result of 8.6 per cent.

Queensland

Queensland dwelling markets surged in 2025, with Brisbane values rising 12.8 per cent in the year to November, and the rest of the state seeing an increase of 11.4 per cent.

“Tight supply and investor demand fuelled rapid growth, though this may pose affordability challenges in 2026 and deflect more buyers toward the unit sector,” Cotality said.

The report showed that in November, the median dwelling value across Greater Brisbane surpassed $1 million for the first time on record.

The most expensive Queensland suburb for houses was Chandler, with a median price of $3,610,035, while Noosa Heads was the costlier suburb for units, averaging about $1,685,889.

Injune was the most affordable suburb for houses with a median price of $162,532, while Laguna Quays was the most cost-effective area for units with a median price of $114,751.

Meanwhile, Clifton had the most growth in house values, with a 27.2 per cent rise, and for units, Hillcrest recorded the highest change in values over the year, with a 30.5 per cent rise.

Albion showed the lowest change in housing values, with a -3.6 per cent fall, and Laguna Quays saw the least growth in unit values, with a -2.1 per cent decline.

Dysart had the highest house gross rental yields, at 10.1 per cent, and Moranbah had the highest unit gross rental yields, at 8.2 per cent.

South Australia

The report showed that Adelaide home values rose 8.2 per cent in the year to November, and regional SA home values were up 10.4 per cent in the same period.

However, with overseas migration becoming the state's main driver of population growth, Cotality forecasted greater demand in the rental market in 2026 amid persistently low stock levels.

The most expensive suburb for houses in 2025 was Unley Park, with a median house price of $2,748,409, and Kingston Park was the most expensive for units, with a median price of $923,357.

Coober Pedy was the most affordable suburb for houses, with prices averaging $80,822, and Hackham was the cheapest option for the unit market, with a median price of $247,778.

Port Pirie West was found to have the highest change in house values over the 12 months, with a 28.6 per cent rise, and Glenside saw the most growth during that period, with a boost of 24.0 per cent.

Across the state, the suburb with the lowest 12-month change in house values was Maitland, with a -5.8 per cent drop, and Glenelg showed the lowest decline for units, with a -0.4 per cent drop.

Port Pirie West also recorded the highest gross rental yields for houses, with 7.3 per cent yields, and Adelaide’s gross rental yields were the highest for the unit market at 5.4 per cent.

Western Australia

Western Australia (WA) led growth nationwide, with values rising and supply remaining very low, and sales outpacing new listings over the year.

Cotality said total stock levels across WA sat -47 per cent below the historic 5-year average in November.

“Over the past year, Perth home values increased 13.1 per cent, the second-highest increase after Darwin. Regional WA home values increased 15.3 per cent in the same period,” it said.

Peppermint Grove was the most expensive suburb for houses, with a median price of $4,076,686, and Cottesloe took the spot as the most expensive suburb for the unit market, with units averaging $1,398,125.

The report showed Norseman as the most affordable suburb for houses, with a median price of $103,349, and Preston Beach as the most cost-effective for units, at $205,180.

Kalbarri had the highest annual change in house values, with a 40.2 per cent rise, and Morley showed the highest annual change in unit values, with an increase of 26.9 per cent.

The lowest change in house values over the 12 months was in Gingin, showing a -0.2 per cent decline, and South Hedland had the lowest value growth in the unit market, with a -14.1 per cent drop.

Newman recorded the highest gross rental yields for houses, at 12.6 per cent, and South Hedland showed the highest gross rental yields for units, at 17.8 per cent.