Groundswell Property's Market Insights
Smart Money Moves as Units Surge, Growth Corridors Strengthen, and Tech Transforms Planning: Key Insights as at 10 May 2025
Welcome to this week’s edition of Groundswell Property’s Market Insights, where we cut through the media noise and deliver real, data-driven updates on Australia’s ever-changing property market.
Image source: Luisa Denu, Unsplash
With markets shifting and affordability pressures reshaping buyer behaviour, this week we look at where units are outperforming, which cities are still seeing strong price growth, and why holding your property for the long term might be the ultimate investment edge.
Here’s what you need to know:
🏙️ Units are outperforming houses nationally and in key capitals as affordability drives demand
📈 Perth, Adelaide, and Brisbane suburbs dominate the latest price growth rankings
⏳ Investors are selling too soon — and leaving long-term wealth behind
🤖 AI is being trialled in planning approvals to speed up housing delivery in NSW
💎 Luxury markets in Perth and Brisbane are outperforming southern capitals
As always, our goal is to provide evidence-based insights to help you make informed property decisions—whether you're buying, selling, or simply keeping a pulse on the market. Let’s dive into the data and insights shaping the year ahead.
Australia’s Price Growth Hotspots
While national property price growth has eased in the past 12 months, new analysis reveals the locations that are still outperforming, with many still in the broader capital city markets.
Cotality (formerly CoreLogic) analysis shows that in the 12 months to May, the strongest locations were in Perth and Adelaide.
Despite a slowdown of transaction levels, the Perth market had strong dwelling price growth, led by the Swan North East area, which is up by 14.2%, Mundaring up 13.3% and Kwinana up 12.9%.
Adelaide’s Gawler region is up 13.9%, Playford North, 12% and Mitcham South, 12.3%.
The outer LGAs of Greater Brisbane were the best performers with Beenleigh up 12.8%, the Ipswich Hinterland up by 11.4% and Caboolture up by 11%.
Sydney’s top performer is the Fairfield region, with median dwelling values up by 7.4%, followed by St Mary’s, up 7.3% and Wollondilly, which is up by 7.3%
Growth was much more subdued in Melbourne. The best performers are the Tullamarine – Broadmeadows which is up 1.9%, Frankston, up 1.8% and Hobsons Bay up 1.7%.
Units Outperform Houses
Australia’s unit market is continuing to outperform its freestanding house market.
The latest data from PropTrack shows nationally and at a capital city level that unit price growth outpaced house price growth in the 12 months to May 2025.
There were four capital cities, Brisbane, Adelaide, Perth and Melbourne (although both its house and unit values dropped), where unit markets performed better than house markets.
It is a continuing trend seen throughout Australia as buyers are priced out of house markets and discover that units offer a more affordable option, particularly within popular lifestyle locations.
PropTrack economist Anne Flaherty says even unit markets in regional centres performed well.
“The outperformance of units has been particularly pronounced in the regions, where values are up 5.3% versus houses at 4.5%.”
“While houses have historically seen stronger capital growth compared to units, the high cost of developing units in the current market, combined with the lower price point at which they sell, has led to fewer of these properties being developed.”
Where Investors Go Wrong
New investor loans are continuing to increase as buyers make a return to the market.
The number of new loans going to investors has risen solidly, with ABS figures showing a 13.2% increase between the December 2023 and December 2024 quarter.
But analysis shows that despite the increase in investors, more than half are selling off too quickly.
The research by the Australian Housing and Urban Research Institute (AHURI) and Curtin University shows more than 20% of investors sell within a year and more than half only keep the property for two years.
Only a third of landlords hold their investment properties for more than 20 years.
Lead author Dr Ranjodh Singh says investors who hold for longer are more likely to build wealth.
The research shows that nationally, 55% of all rental investments are held for two years, 28% for two to six years, and 17% for more than six years.
AI Taking Over Planning
In an effort to speed up development approvals and deliver desperately needed housing faster, some Australian councils are trialling the use of AI to sort through building applications.
Burwood, Blacktown, Inner West, Bayside, Randwick, Canterbury Bankstown, Cumberland and Hawkesbury councils are all taking part in a state government trial of AI to help fast track development approvals.
It is hoped the system will alleviate the time it takes for planners to have to wade through applications to determine whether they actually meet current regulations.
The system is being trialled on simple applications, such as new houses, renovations or duplexes.
The AI, trained with the Council’s own planning regulations, should be able to quickly determine those applications that already meet existing rules.
The approval system will not be fully automated, as a council planner will sign off on the project after the public feedback stage.
NSW Housing Minister Paul Scully says the AI is designed to assist, not replace, town planners.
Luxury Market Moving
Australia’s smaller capital cities of Perth and Brisbane are leading southern capitals for growth in their luxury property markets.
There are four Australian capital cities named in Knight Frank’s Prime Global Cities Index (PGCI) Q1 2025.
Perth is in 16th position with price growth in the luxury market of 3.8% in the 12 months to March, Brisbane comes in at 18th spot with growth of 2.8%
The two capital beat out Sydney (36th spot with values down 0.7%) and Melbourne (40th spot with values down 2.1%).
The list tracks the changes in prime residential prices across 44 cities worldwide, with Seoul in Korea the top performer with growth of 18.4%.
Associate director at Knight Frank’s Australian partner McGrath Estate Agents, Adam Ross, says there is likely to be ongoing sustainable price growth of prestige homes across most cities for the remainder of 2025, particularly with heightened expat activity as they benefit from the currency exchange.
The report says limited supply is sustaining price growth.
Key Takeaways:
Unit values up across the board: PropTrack reports units are outpacing house growth in most capital cities and regional markets, with affordability a key driver.
Top-performing suburbs revealed: Perth’s Swan North East (up 14.2%) and Adelaide’s Gawler (up 13.9%) lead the national growth list.
Investor timing off-track: New research shows over 50% of property investors sell within two years — undermining long-term wealth creation.
AI in planning approvals: Councils trial smart tech to speed up approvals and boost housing supply. Human oversight still remains.
Luxury on the rise (in the west): Perth and Brisbane top Australia’s prestige growth list, outshining Sydney and Melbourne in Knight Frank’s global rankings
That’s a wrap for this week’s edition of GPMI, we’ll continue tracking the data and delivering the insights that matter most.
Success in property comes down to having the right information, the right team, and the right strategy. If you want to make your next move with the confidence and preparedness needed to get the best result, get in touch via 0439754475
Keep an eye out next Saturday for more insights.
Tom Haigh
Director & Licensed Buyers Agent
Groundswell Property - Established 2015
tom@groundswellproperty.net
0439754475