Suburbs still attracting strong buyer interest despite a softening market

Home price growth is slowing amid high interest rate conditions and post-budget sentiment shifts from investors, however, a number of suburbs are still attracting interest with search volumes up from a year prior.

Auction clearance rates are trending downwards and are the lowest they've been since 2020 which reflects a growing mismatch between buyer and seller expectations in regards to price.

However, pockets of the market continue to attract buyers and these areas could see more price resilience in the upcoming months.

Jump ahead to see where search activity is on the rise.

According to Proptrack's May Home Price Index, home prices were unchanged over the month with combined capital cities recording a 0.1% decline, driven by both Sydney and Melbourne's 0.2% falls since April.

Over 40% of Australia's SA4 regions - which are regions with populations between 100,000 to 500,000, according to the ABS - saw a monthly decline, reflecting the easing of market conditions.

This is likely a consequence of two main factors.

The first is three consecutive cash rate rate hikes between February and May, following high inflation figures on the back of fuel shortages and high housing costs (electricity and rent rises) which have lowered borrowing capacities for those looking to buy and constrained demand at current price levels.

Faulconbridge saw some of the largest increases in searches under the 'buy' section on realestate.com.au.

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The second is the budget tax reforms which will make the purchase of established properties less enticing for investors. This may already be weighing on investor demand and is likely to continue to do so in the near- to mid-term, reflecting a potential shift away from strong investor activity seen over recent years.

Where search activity is on the rise

Despite this slowdown in market momentum, there is still strong buyer interest at a suburb level. Many suburbs are seeing higher search activity from the 'buy' section of realestate.com.au compared to to last year.

While searches don't not directly translate to transactions, rising search volumes highlight where buyer interest may convert into future demand.

Cowan, Keeymah and Faulconbridge had the largest gains in searches over the past year in Sydney. Searches were 33%, 22% and 20% higher, respectively, compared to the 2025 May quarter. These suburbs have strong lifestyle appeal which is contributing to increased buyer interest.

Searches for Oaklands Junction , Avonsleigh and Badger Creek, which all boast of large acreage properties, grew the most among all Melbourne suburbs. They were up 39%, 25% and 25% respectively from May 2025.

Top 3 suburbs with the largest annual increase in searches, by capital city

In Brisbane, Forest Hill and Summerholm located in Ipswich led in terms of search volume growth. Compared to a year prior, there were 42% and 31% more searches. Delaney's Creek also saw a 26% increase in searches over the same period.

Both Ipswich and Moreton Bay have seen strong population growth in recent years due to their affordability and generous land sizes, supporting increased buyer interest.

Among suburbs in Perth, 'buy' searches for North Yunderup, Oakford and Henley Brook rose the most over the past year. Interest among those looking to buy increased with searches higher by 42%, 22% and 18% respectively.

Paracombe, Charleston and Heathfield topped the list for growth in searches in Adelaide. Like many other tree‑change suburbs offering country living with city access, this area saw increased interest with searches up between 23% to 37% compared to the May 2025 quarter.

Although overall search activity has been trending downwards, searches from buyers in May 2026 remains above the monthly average from 2024 to 2025, indicating demand is still present, even as momentum has eased.