Three rate rises from the Reserve Bank have slowed price growth over the past few months, with falls concentrated predominantly in inner regions of Sydney and Melbourne, which already had some of the highest home prices in the nation.<\/p>\n
The softness has been compounded by uncertainty among investors, triggered by property tax changes to limit negative gearing to only new properties and a reduction in the capital gains tax discount.<\/p>\n
But even though interest rate and tax changes have caused prices in some areas to come off the boil, values in many markets are still climbing higher.<\/p>\n
PropTrack data examining property prices changes in the past three months reveals the areas where property prices have proven more resilient to rate rises.<\/p>\n
The data shows that prices rose in almost two thirds of Australia\u2019s SA3 regions in the past three months.<\/p>\n
Top SA3 regions for house price growth – capital citiesSource: PropTrack. Data covers the three months to end of May 2026.Region (SA3)State3-month price growth1Sherwood – IndooroopillyQLD12.3%2FremantleWA6.0%3Gawler – Two WellsSA5.5%4Brisbane InnerQLD4.3%5Port Adelaide – WestSA3.8%6KalamundaWA3.4%7Brisbane Inner – NorthQLD3.4%8ArmadaleWA3.1%9Hobart – North WestTAS3.0%10Ipswich HinterlandQLD2.9%11MelvilleWA2.6%12Prospect – WalkervilleSA2.4%13PalmerstonNT2.3%14PlayfordSA2.3%15Hobart – North EastTAS2.3%16Sorell – Dodges FerryTAS2.2%17Darwin CityNT2.2%18OnkaparingaSA2.2%19Macedon RangesVIC2.2%20SalisburySA2.2%<\/p>\n
An SA3 region is a geographical area defined by the Australian Bureau of Statistics (ABS) which has a population between 30,000 and 130,000 people. SA3 regions vary in size, and may comprise a handful of city suburbs, an entire regional town or small city, or less densely-populated corner of a state.<\/p>\n
These areas are useful for examining price movements over just a few months, given price movements at the suburb level can be volatile over shorter time periods.<\/p>\n
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This four-bedroom house in Indooroopilly sold for just over $2.6 million last month as values surged higher in pockets of Brisbane’s west. Picture: realestate.com.au\/sold<\/p>\n
The data shows that many parts of regional Queensland and New South Wales are holding up well, with values jumping significantly in just three months.<\/p>\n
Prices in many of these regions have already been rising strongly, with strong demand and significant price momentum outweighing the effect of a handful of rate hikes and changes to tax settings.<\/p>\n
Top SA3 regions for house price growth – regional areasSource: PropTrack. Data covers the three months to end of May 2026.Region (SA3)State3-month price growth1Wheat Belt – SouthWA8.1%2Innisfail – Cassowary CoastQLD7.5%3Noosa HinterlandQLD7.4%4Port Douglas – DaintreeQLD7.2%5Broken Hill and Far WestNSW5.8%6Bourke – Cobar – CoonambleNSW5.4%7Far NorthQLD5.4%8Lithgow – MudgeeNSW5.3%9WhitsundayQLD4.9%10Upper HunterNSW4.6%11Central Highlands (Qld)QLD4.6%12Charters Towers – Ayr – InghamQLD4.4%13AlburyNSW4.4%14Barwon – WestVIC4.2%15Mid NorthSA4.1%16Wagga WaggaNSW4.0%17Wangaratta – BenallaVIC3.8%18Murray River – Swan HillVIC3.6%19Gold Coast – NorthQLD3.5%20Eyre Peninsula and South WestSA3.4%<\/p>\n
House values jumped more than 7% in just three months in areas of north Queensland such as Innisfail<\/a>, Port Douglas<\/a> and the Noosa<\/a> hinterland.<\/p>\n Meanwhile, parts of regional NSW towns such as Lithgow<\/a>, Mudgee<\/a>, Albury<\/a>, Wagga Wagga<\/a> and the Upper Hunter<\/a> are outperforming the rest of the nation.<\/p>\n REA Group senior economist Anne Flaherty<\/a> said the local drivers of property price growth in many booming regional markets outweighed the impact of higher interest rates and tax changes.<\/p>\n \u201cIt just comes down to supply and demand,\u201d she said. \u201cEven when we have headwinds to property market conditions like higher rates or a decrease in investor demand, in areas where more buyers are looking compared to the number of properties for sale, we can still see prices rise.\u201d<\/p>\n <\/p>\n Get your realEstimate\u2122 <\/p>\n Track your property’s value and unlock insights and data tailored for property owners. <\/p>\n Search an address now Ms Flaherty said less expensive markets could draw more buyers at times when higher interest rates affected housing affordability.<\/p>\n \u201cAffordability is ironically one of the things that can drive higher property price growth in certain areas,\u201d she said<\/p>\n \u201cIf we are in a situation where rates are high and the cost of living is high, that can drive demand in those more affordable growth corridors and regional areas.\u201d<\/p>\n Top SA3 regions for unit price growth – capital citiesSource: PropTrack. Data covers the three months to end of May 2026.Region (SA3)State3-month price growth1Adelaide CitySA7.8%2Springfield – RedbankQLD7.3%3PittwaterNSW6.2%4WannerooWA5.9%5Port Adelaide – WestSA5.7%6RockinghamWA5.6%7CabooltureQLD5.2%8Darwin CityNT4.9%9UnleySA4.8%10LitchfieldNT4.8%11Prospect – WalkervilleSA4.6%12South PerthWA4.5%13Belmont – Victoria ParkWA4.5%14Ipswich HinterlandQLD4.2%15Hobart – North WestTAS4.2%16RedcliffeQLD3.9%17KwinanaWA3.9%18JoondalupWA3.9%19Forest Lake – OxleyQLD3.7%20SunburyVIC3.5%<\/p>\n There were still standout results in the capitals, with pockets of Perth, Adelaide, Brisbane and Hobart recording strong rises in values as pricier parts of Sydney and Melbourne faced declines.<\/p>\n While many of the top regions for three-month house price growth were high-demand regional markets, a pocket of Brisbane\u2019s west topped the list, with values in the Sherwood – Indooroopilly SA3 region rising 12.3% in just three months.<\/p>\n The area includes popular suburbs such as St Lucia<\/a>, Taringa<\/a> and Indooroopilly<\/a>, which have recently been in demand among upgrading families<\/a> relocating for proximity to top-ranked schools.<\/p>\n Other high growth markets included Fremantle<\/a> in Perth, Hobart<\/a>\u2019s northwest, and several pockets of Adelaide\u2019s north<\/a>.<\/p>\n Real estate agent and White House Property Partners East Fremantle director Stephanie Dobro<\/a> said the local market in Fremantle was driven by downsizing owner-occupiers buying for the coastal lifestyle, supported by demand from east coast buyers seeking a Perth base.<\/p>\n Fremantle house prices have jumped 6% in just three months. Picture: realestate.com.au\/sold<\/p>\n<\/a><\/p>\n
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