Property prices have rocketed higher in booming suburbs outside the capitals, fuelled by buyers looking for affordable homes in areas within the orbit of major cities.
Home prices have soared more than 30% higher in the past year in some suburbs of satellite cities, with growth often driven by buyers from the capitals seeking a more affordable lifestyle, while retaining the ability to commute to the bigger city.
Price growth in Australia’s capitals has been outpaced by the rest of the nation since the pandemic, PropTrack data shows, with property prices in regional areas up about 64% compared with the 43% growth in the combined capitals in the past five years.
That growth was partly driven by population flows out of the capitals and into smaller cities, with the pandemic accelerating a trend that's been ongoing for decades.
In more recent years, affordability challenges as a result of raised interest rates have encouraged more buyers, including remote workers and out-of-area investors, to search further afield.
What is a satellite city?
The term 'satellite city' is often given to smaller cities located within an hour or with Australia’s capitals that typically have populations of a few hundred thousand people.
Examples of satellite cities include Newcastle and Wollongong in NSW, the Gold Coast, Sunshine Coast and Toowoomba in Queensland, Geelong and Bendigo in Victoria and Bunbury in Western Australia.
Inner Newcastle suburbs, as well as Stockton in the city's north, recorded the city's highest house price growth in the past year. Picture: Getty
Other urban areas such as the Central Coast in NSW and Mandurah in Western Australia could also be considered satellite cities.
While these technically form part of Greater Sydney and Greater Perth, the distance from the capital and natural geographical boundaries make these areas worthy of the satellite-city moniker.
Jump ahead to see the top growth suburbs in:
- Newcastle, Central Coast and Wollongong
- Geelong, Bendigo and Ballarat
- Gold Coast, Sunshine Coast and Toowoomba
- Mandurah and Bunbury
PropTrack data for the past year shows that affordability remains a key driver of price growth in these areas, with most top-growth suburbs of Australia’s satellite cities having median prices lower than the cost of a typical home in their respective capital cities, even after a strong run of growth.
REA Group executive manager of economics Angus Moore said affordable home prices played a major role in coaxing buyers from capitals to satellite cities.
“Affordability is a big part of the drawcard, particularly in Sydney,” he said. “We see a lot of people, particularly young families, moving from Sydney to places like the Central Coast to find more affordable housing.”
On the other hand, in some highly sought-after suburbs, particularly in south east Queensland, demand from cashed-up buyers has pushed home values to new highs, cementing their status as premium markets with multi-million dollar medians.
Are prices in satellite cities outpacing the capitals?
Property prices in some satellite cities have grown faster than their respective capitals during the past year, but it’s not a clear-cut trend across all markets.
In NSW, prices in Sydney’s satellite cities of Wollongong, the Central Coast and Newcastle have grown a little faster than the capital, but the trend is stronger in the unit market, and house prices in Wollongong have grown slower than in Sydney.
In Victoria, prices in Melbourne and its satellite cities of Geelong and Ballarat all declined over the past year, with only Bendigo’s modest price growth putting it ahead of Melbourne.
| City | 12-month change - median house price | 12-month change - median unit price |
| Sydney | 2.7% | 2.0% |
| Wollongong | 1.4% | 4.4% |
| Central Coast | 2.8% | 3.0% |
| Newcastle | 4.8% | 4.9% |
| Melbourne | -1.8% | -1.0% |
| Geelong | -2.2% | -2.0% |
| Ballarat | -1.2% | -1.6% |
| Bendigo | 0.6% | 0.6% |
| Brisbane | 7.9% | 13.2% |
| Gold Coast | 6.5% | 7.2% |
| Sunshine Coast | 4.9% | 9.9% |
| Toowoomba | 12.2% | 10.7% |
| Perth | 8.9% | 12.9% |
| Mandurah | 10.6% | 3.2% |
| Bunbury | 10.5% | 8.2% |
Price growth in Brisbane outpaced the Gold Coast and Sunshine Coast for both houses and units, and while house prices in Toowoomba are growing faster than in Brisbane, the capital is ahead for units.
In Western Australia, Mandurah and Bunbury have edged ahead of Perth for house-price growth, but the capital has had much stronger unit-price growth recently.
Custom Call to ActionMr Moore said population flows from capitals to satellite cities had slowed a little in recent years.
“The trends of people moving out of capitals into regional areas and satellite cities was especially strong during the pandemic,” he said.
“We're still seeing it, and it is a fairly consistent feature, but in many areas it's not as strong as what we saw during the pandemic.”
Sydney’s satellite cities - Newcastle, Central Coast and Wollongong
Most of Newcastle’s top-growth suburbs in the past year are in the inner city or near the harbour, including Carrington, Stockton, Tighes Hill and Hamilton.
These suburbs have median house prices that have recently reached above $1 million.
Top performing Newcastle suburbs
| Suburb | State | Property type | Median sale price | 12-month change |
| Carrington | NSW | House | $1,070,000 | 33.7% |
| Stockton | NSW | House | $1,250,000 | 22.5% |
| Tighes Hill | NSW | House | $1,170,000 | 14.4% |
| Hamilton | NSW | House | $1,015,000 | 10.9% |
| Mayfield East | NSW | House | $940,000 | 10.6% |
| Wallsend | NSW | Unit | $675,000 | 10.7% |
| Elermore Vale | NSW | Unit | $660,000 | 10.0% |
| Warners Bay | NSW | Unit | $765,000 | 6.3% |
| Adamstown | NSW | Unit | $735,000 | 6.3% |
| Charlestown | NSW | Unit | $645,000 | 4.0% |
“Inner-city suburbs are very much undergoing that regentrification process,” said real estate agent and Spillane Property principal Donna Spillane. “We’re seeing more young people and young families who want that inner-city lifestyle.”
The city has long drawn buyers from Sydney seeking a more affordable and relaxed lifestyle, but lately more buyers were relocating from Melbourne, Ms Spillane said.
Inner Newcastle suburbs are increasingly appealing to young families, with high demand contributing to strong price growth. This three-bedroom Carrington house sold for $1.3 million late last year. Picture: realestate.com.au/sold
“Newcastle has a lot of cultural similarities to Melbourne in regards to the arts, cafes and laneways,” she said.
Meanwhile, most of the suburbs of the Central Coast have outpaced Sydney as a whole in the past year, the data shows, with top performers including Mardi, San Remo and Avoca Beach.
Top performing Central Coast suburbs
| Suburb | State | Property type | Median sale price | 12-month change |
| Mardi | NSW | House | $1,050,000 | 22.1% |
| San Remo | NSW | House | $732,500 | 12.4% |
| Avoca Beach | NSW | House | $1,700,000 | 12.0% |
| Point Clare | NSW | House | $1,053,750 | 11.2% |
| Buff Point | NSW | House | $837,500 | 10.9% |
| Gosford | NSW | Unit | $562,000 | 8.1% |
| Umina Beach | NSW | Unit | $850,000 | 4.7% |
| West Gosford | NSW | Unit | $581,000 | 3.8% |
| East Gosford | NSW | Unit | $759,500 | 3.3% |
| The Entrance | NSW | Unit | $675,000 | 3.1% |
Real estate agent Steve Nixon of McGrath Avoca Beach said more Sydney buyers were returning after a lull following the pandemic boom period.
Avoca Beach on the Central Coast recorded 12% house price growth after prices dropped during 2023. Picture: Getty
“We did have a little bit of a pullback, but that’s now starting to turn around,” he said.
“The holiday home buyer is starting to increase a little bit more. A lot of buyers are looking to move up, but they may not move straight away.”
Top performing Wollongong suburbs
| Suburb | State | Property type | Median sale price | 12-month change |
| Warilla | NSW | House | $882,500 | 16.0% |
| West Wollongong | NSW | House | $1,040,000 | 9.5% |
| Shellharbour | NSW | House | $1,312,500 | 9.4% |
| Fairy Meadow | NSW | House | $1,200,000 | 9.1% |
| Koonawarra | NSW | House | $763,250 | 9.0% |
| Woonona | NSW | Unit | $840,000 | 15.1% |
| Corrimal | NSW | Unit | $727,500 | 8.8% |
| Albion Park | NSW | Unit | $729,000 | 6.4% |
| Kiama | NSW | Unit | $925,000 | 5.1% |
| Balgownie | NSW | Unit | $917,000 | 3.9% |
In Wollongong, two suburbs that recorded some of the highest growth rates, Warilla and Koonawarra, were also among the region’s most affordable.
Many of the top growth suburbs in Wollongong were relatively affordable, although Shellharbour, with a $1.3 milliion median, recorded 9.4% house price growth in the past year. Picture: Getty
The median price in Warilla jumped 16% in the past year, with most homes in the suburb's east selling for more than $1 million.
Real estate agent and Ray White Shellharbour City principal Ben Cohen said demand had bounced back recently in Warilla, although well-located properties closer to the beach remained popular throughout market cycles.
Melbourne’s satellite cities - Geelong, Ballarat and Bendigo
Property prices in both Melbourne and regional Victoria are still lower than a year ago, even after a modest recovery recently, but there are some suburbs of Melbourne’s satellite cities of Geelong, Ballarat and Bendigo that recorded strong price growth in the past year.
Top performing Geelong suburbs
| Suburb | State | Property type | Median sale price | 12-month change |
| Lovely Banks | VIC | House | $840,000 | 15.1% |
| Manifold Heights | VIC | House | $1,260,000 | 7.2% |
| Whittington | VIC | House | $529,000 | 5.8% |
| Bannockburn | VIC | House | $785,000 | 4.0% |
| Herne Hill | VIC | House | $700,000 | 3.7% |
| Belmont | VIC | Unit | $538,000 | 2.0% |
| Hamlyn Heights | VIC | Unit | $530,750 | 1.1% |
House prices in Lovely Banks in Geelong’s north are up about 15% over the past year, helped in no small part by increased levels of housing development in the semi-rural suburb.
Most of the Geelong suburbs with the fastest price growth have median house prices below $1 million, although price in Manifold Heights, one of the city’s priciest suburbs, are up about 7% to a median of $1.26 million.
Top performing Bendigo suburbs
| Suburb | State | Property type | Median sale price | 12-month change |
| Bendigo | VIC | House | $620,000 | 14.8% |
| Long Gully | VIC | House | $460,000 | 10.8% |
| Heathcote | VIC | House | $547,500 | 8.4% |
| Strathdale | VIC | House | $642,500 | 5.3% |
| Junortoun | VIC | House | $940,000 | 4.4% |
| Golden Square | VIC | Unit | $445,000 | 3.5% |
| Flora Hill | VIC | Unit | $410,000 | 0.6% |
Bendigo’s eponymous central suburb recorded house-price growth of about 15% in the past year, while neighbouring Long Gully recorded an 11% gain.
Bendigo offers great value for money compared with Melbourne. This four-bedroom Bendigo house on a 1067sqm block recently sold for $720,000. Picture: Getty
Soldiers Hill topped the list in Ballarat, followed by Buninyong, a small town just outside of the city proper.
Top performing Ballarat suburbs
| Suburb | State | Property type | Median sale price | 12-month change |
| Soldiers Hill | VIC | House | $600,000 | 9.4% |
| Buninyong | VIC | House | $737,500 | 7.7% |
| Mount Pleasant | VIC | House | $480,000 | 6.7% |
| Creswick | VIC | House | $555,000 | 5.7% |
| Mount Helen | VIC | House | $640,000 | 4.1% |
| Canadian | VIC | Unit | $390,000 | 3.3% |
There were fewer suburbs within Melbourne’s satellite cities where unit prices grew, with only a handful including Canadian in Ballarat, Golden Square in Bendigo and Belmont in Geelong recording modest growth.
Brisbane’s satellite cities - Gold Coast, Sunshine Coast and Toowoomba
Most of the suburbs of the Gold Coast and Sunshine Coast where prices grew quickest in the past year were premium suburbs with higher prices than in Brisbane, bucking the trend seen in most other satellite cities.
Top performing Gold Coast suburbs
| Suburb | State | Property type | Median sale price | 12-month change |
| Surfers Paradise | QLD | House | $3,850,000 | 28.3% |
| Willow Vale | QLD | House | $950,000 | 23.9% |
| Paradise Point | QLD | House | $2,200,000 | 20.4% |
| Clear Island Waters | QLD | House | $2,200,000 | 18.3% |
| Oxenford | QLD | House | $1,040,500 | 15.6% |
| Ashmore | QLD | House | $1,150,000 | 15.5% |
| Broadbeach Waters | QLD | House | $2,350,000 | 15.3% |
| Burleigh Waters | QLD | House | $1,710,000 | 15.3% |
| Jacobs Well | QLD | House | $1,170,250 | 15.3% |
| Robina | QLD | House | $1,320,000 | 14.8% |
| Clear Island Waters | QLD | Unit | $1,130,000 | 42.6% |
| Broadbeach Waters | QLD | Unit | $1,000,000 | 22.7% |
| Miami | QLD | Unit | $1,100,000 | 19.3% |
| Arundel | QLD | Unit | $735,000 | 19.2% |
| Highland Park | QLD | Unit | $700,000 | 19.1% |
| Elanora | QLD | Unit | $800,000 | 18.5% |
| Coomera | QLD | Unit | $665,000 | 17.7% |
| Upper Coomera | QLD | Unit | $700,000 | 16.7% |
| Nerang | QLD | Unit | $670,000 | 16.0% |
| Burleigh Waters | QLD | Unit | $840,500 | 15.9% |
Pricey waterfront Gold Coast suburbs such as Surfers Paradise, Paradise Point and Clear Island Waters have been targeted by both cashed-up retirees and property developers, with population outflows from southern states increasing demand and supporting price growth.
Premium waterfront suburbs of the Gold Coast have topped the list for price growth in the past year. This four-bedroom Clear Island Waters house recently sold for $3.3 million. Picture: realestate.com.au/sold
Demand for beachside suburbs is also strong on the Sunshine Coast, although several of the region's top suburbs were hinterland towns such as Maleny, Palmwoods and Pomona, suggesting affordability and value for money have factored into many buyers' decision making.
Top performing Sunshine Coast suburbs
| Suburb | State | Property type | Median sale price | 12-month change |
| Maleny | QLD | House | $1,205,000 | 26.8% |
| Buddina | QLD | House | $1,742,000 | 26.7% |
| Twin Waters | QLD | House | $1,765,000 | 20.5% |
| Sunrise Beach | QLD | House | $2,010,000 | 18.2% |
| Noosaville | QLD | House | $2,000,000 | 15.4% |
| Palmwoods | QLD | House | $1,050,000 | 14.7% |
| Pomona | QLD | House | $1,087,500 | 14.5% |
| Bokarina | QLD | House | $1,700,000 | 14.1% |
| Cooran | QLD | House | $900,000 | 13.9% |
| Warana | QLD | House | $1,615,000 | 13.5% |
| Marcoola | QLD | Unit | $810,000 | 20.9% |
| Coolum Beach | QLD | Unit | $960,000 | 20.0% |
| Sunrise Beach | QLD | Unit | $1,032,500 | 18.7% |
| Pelican Waters | QLD | Unit | $1,000,000 | 18.0% |
| Caloundra | QLD | Unit | $820,000 | 17.6% |
| Parrearra | QLD | Unit | $797,500 | 16.4% |
| Mount Coolum | QLD | Unit | $820,000 | 13.5% |
| Noosaville | QLD | Unit | $1,000,000 | 12.4% |
| Nambour | QLD | Unit | $549,500 | 12.1% |
| Kings Beach | QLD | Unit | $826,000 | 11.6% |
Meanwhile, Toowoomba’s top performers were clustered around the half-a-million dollar mark, with the region’s improving infrastructure appealing to more Brisbane buyers seeking value for money.
Affordable suburbs in Toowoomba's north such as Harlaxton have been on the radar for buyers due to infrastructure development in the area. This three-bedroom Harlaxton house sold for $632,000 late last year. Picture: realestate.com.au/sold
Real estate agent and NGU Toowoomba principal Matt Hawkins said several of the region’s top-growth suburbs such as Rockville, Harlaxton and Wilsonton were located close to the Toowoomba Bypass — a recently-opened toll road providing improved access to Brisbane — as well as a major hospital redevelopment, which had increased investor interest in the area.
Top performing Toowoomba suburbs
| Suburb | State | Property type | Median sale price | 12-month change |
| Rockville | QLD | House | $575,000 | 27.8% |
| Gatton | QLD | House | $560,000 | 23.1% |
| Harlaxton | QLD | House | $542,500 | 20.6% |
| South Toowoomba | QLD | House | $630,000 | 20.0% |
| Wilsonton | QLD | House | $565,000 | 17.7% |
| Rangeville | QLD | Unit | $649,000 | 37.4% |
| East Toowoomba | QLD | Unit | $558,500 | 36.2% |
| Wilsonton | QLD | Unit | $445,000 | 30.1% |
| Harristown | QLD | Unit | $403,500 | 26.1% |
| Newtown | QLD | Unit | $422,500 | 21.9% |
“For the past three decades Toowoomba has always experienced growth coming from east to west,” he said. “We get a lot of retired farmers selling up 100 acres and moving to Toowoomba.”
“Since COVID we’re getting people from the east coming west, commuting between Brisbane and Toowoomba for work each day. We’re now experiencing growth from both angles.”
Perth’s satellite cities - Mandurah and Bunbury
In several suburbs in the Mandurah region, about an hour south of Perth, property prices are up to $200,000 cheaper than Perth’s overall median value.
That relative value of homes has prompted more buyers to make the move, contributing to prices growing by more than 20% in a year in some suburbs.
Mandurah, about an hour south of Perth, is known for its canals lined with waterfront apartments. Picture: Getty
Real estate agent and Acton Bell Property Mandurah director Aaron Boud said a combination of affordability, lifestyle appeal and infrastructure improvements was driving demand in the region’s top-performing suburbs.
“There’s also a ripple effect from Perth, with buyers priced out of the metro market now looking further south for entry-level homes and improved lifestyle options,” he said.
Top performing Mandurah suburbs
| Suburb | State | Property type | Median sale price | 12-month change |
| Coodanup | WA | House | $591,250 | 27.2% |
| Mandurah | WA | House | $560,000 | 24.4% |
| Greenfields | WA | House | $600,000 | 23.6% |
| Falcon | WA | House | $697,500 | 23.5% |
| Meadow Springs | WA | House | $720,000 | 23.1% |
| Silver Sands | WA | House | $804,500 | 22.8% |
| Pinjarra | WA | House | $555,000 | 20.7% |
| Lakelands | WA | House | $670,000 | 19.6% |
| Dudley Park | WA | House | $662,500 | 18.8% |
| Wannanup | WA | House | $800,000 | 16.8% |
| Greenfields | WA | Unit | $505,000 | 32.5% |
| Mandurah | WA | Unit | $455,000 | 24.7% |
| Dudley Park | WA | Unit | $418,000 | 19.4% |
| Halls Head | WA | Unit | $570,500 | 17.6% |
About one in five buyers were from Perth, Mr Boud said, and while investors made up about a third of the market, interest from interstate investors had tapered off recently.
Mr Boud said Coodanup and Greenfields were popular with first-home buyers and investors, while Falcon and Meadow Springs appealed to families and retirees due to their proximity to the beach.
“We also have a strong population of FIFO [fly-in-fly-out] workers who don’t mind the 70km commute to the airport, especially when they can enjoy affordable homes with side access, larger blocks with space for sheds, and close proximity to the ocean,” he said.
Bunbury is located about two hours' drive south of Perth, with recent highway upgrades improving access. Picture: Getty
Further south, most of the fastest growing suburbs in the Bunbury region were among the most affordable in the area, with interstate investors playing a role in supporting price growth.
Improved highway access to Bunbury and Busselton has allowed more buyers to relocate from Perth while maintaining hybrid work arrangements, while Busselton airport supports those in fly-in-fly-out roles.
Top performing Bunbury suburbs
| Suburb | State | Property type | Median sale price | 12-month change |
| Harvey | WA | House | $550,000 | 42.1% |
| Withers | WA | House | $497,000 | 34.3% |
| South Bunbury | WA | House | $673,750 | 33.4% |
| Carey Park | WA | House | $497,500 | 31.8% |
| Glen Iris | WA | House | $600,253 | 30.2% |
| Usher | WA | House | $544,500 | 29.0% |
| Dunsborough | WA | House | $1,202,500 | 27.9% |
| Capel | WA | House | $620,000 | 26.9% |
| Collie | WA | House | $399,500 | 26.8% |
| Vasse | WA | House | $877,500 | 25.2% |
| South Bunbury | WA | Unit | $490,000 | 24.1% |
| Margaret River | WA | Unit | $572,500 | 23.1% |
| West Busselton | WA | Unit | $612,500 | 18.9% |
Real estate agent Garry Morris of LJ Hooker Property South West said the buyer profile in Dunsborough, where prices jumped 27% in the past year, was changing as more buyers made a permanent move to the sea change hotspot.
“It used to be that it was mostly holiday homes down here, but I'm actually finding a lot of those holiday homes are now being bought by people who are moving in and residing here," Mr Morris said.
“It’s reachable, and it’s not too far from Perth. The road system has been improved dramatically so it’s a fairly easy drive.”
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