Perth suburbs lead property growth rankings as Sydney makes a comeback

Perth’s Cottesloe and Claremont region again led real estate group Ray White’s top property growth rankings based on absolute dollar growth, with the median house price rising $275,000 to $2.79m in the year to August.

The region encompasses many of Perth’s most expensive suburbs such as Peppermint Grove, Dalkeith and Mosman Park.

Manly and the area centred around prestige suburbs such as Point Piper, Bellevue Hill and Vaucluse drove Sydney’s return to the rankings after the city failed to make the cut in 2024.

Manly’s median house price grew by $176,000 to $3.87m over the 12 months to August 2025.

The eastern suburbs area, which has suburbs such as Double Bay, Bondi Beach, Paddington and Bronte, recorded growth of $158,000 to $4.12m.

Ray White chief economist Nerida Conisbee said interest rate cuts were driving new buyer activity in high-end Sydney locations.

“We’ve seen a lot of weakness at the top end of the market in Sydney but it now seems to be recovering with the interest rate cuts,” Ms Conisbee said.

Ms Conisbee said Sydney’s reappearance in the rankings might signal a broader revival in premium markets in other major cities, as high-end buyers return to established prestige locations.

“Places like Manly and eastern suburbs, at this point in the market, are the most popular areas,” she said.

“As they start to increase we tend to see a broadening out in activity. People, if they get priced out of these top markets, they tend to look at slightly more affordable premium markets.”

Ms Conisbee said that could lead to more premium Sydney markets featuring in the top-10 growth list in 2026, although she predicted Melbourne would not make an appearance.

“There’s still quite a bit of pain in that (Melbourne) market and the slower economy is not helping it, and the sentiment seems to be quite different,” she said.

“I don’t think we’ll see premium Melbourne but I do think we’ll see a lot more Sydney suburbs on that list next year.”

Perth reign continues

Perth again dominated the top growth areas, accounting for half of the national top 10 after taking up six spots in 2024.

While Cottesloe-Claremont retained the top spot for price growth nationally, 2025’s $275,000 median price increase was down from 2024’s $331,000 jump.

“While Cottesloe has moderated from the extreme growth in 2024, we have seen a slight re-acceleration in recent months as a result of interest rate cuts,” Ms Conisbee said.

South Perth came in second by absolute dollar growth for the 12 months to August 2025, with a $180,000 increase in its median house price to $1.66m.

The other WA areas to make the list were Perth city ($176,000 increase to $1.65m), Melville ($160,000 rise to $1.47m) and Fremantle ($158,000 rise to $1.45m).

Top 10 growth regions

	Major city	Region	2025 price	2024 price	$ growth	% growth
1.	Perth	Cottesloe-Claremont	$2.79m	$2.52m	$275,000	10.9%
2.	Perth	South Perth	$1.66m	$1.48m	$180,000	12.2%
3.	Sydney	Manly	$3.87m	$3.70m	$176,000	4.8%
4.	Perth	Perth city	$1.65m	$1.48m	$176,000	11.9%
5.	Brisbane	Brisbane inner – north	$1.92m	$1.75m	$164,000	9.4%
6.	Perth	Melville	$1.47m	$1.31m	$160,000	12.2%
7.	Perth	Fremantle	$1.45m	$1.29m	$158,000	12.3%
8.	Sydney	Eastern suburbs – north	$4.12m	$3.97m	$158,000	4.0%
9.	Brisbane	Brisbane inner – east	$1.93m	$1.77m	$158,000	8.9%
10.	Brisbane	Brisbane inner – west	$1.95m	$1.80m	$155,000	8.6%

Source: Ray White. Based on ABS statistical area 3 regions and absolute dollar growth in median house price data from Neoval for 12 months to August 2025.

Ms Conisbee said the lack of homes on the market, along with resources sector activity and interstate migration to WA, was driving the strong price growth in Perth.

“The rate of growth has definitely slowed in Perth; now it’s running at 10 to 11 per cent instead of 25 per cent,” she said.

“As a result, the numbers that we’re seeing in, say, Cottesloe aren’t quite as high as they were last year.

“What we’re seeing in Perth is it is now becoming quite unaffordable in many parts and that’s obviously slowing down the market more broadly, even at the top end.”

The overall list showed a moderation in the rate of growth compared with 2024. The value increases for the top nine range from $155,000 to $180,000, and Cottesloe-Claremont was clearly ahead with its $275,000 increase.

Brisbane accounted for three positions in the top 10. Brisbane’s inner north suburbs were up $164,000 to a $1.92m median house price, while the inner east was a $158,000 rise to $1.93m and the inner west $155,000 increase to $1.95m.

Ms Conisbee said Sydney’s return to the top 10 was concentrated in established premium areas rather than representing broad market strength.

“Overall Sydney is relatively weak but what does seem to be happening is the top end is pretty strong and the bottom end is strong,” she said.

“There’s still pockets of weakness and it’s definitely not what we’re seeing in places like WA, South Australia and Queensland, which are very, very strong and have been strong for a long time.”

The rankings were based on absolute dollar growth in median house prices, not on the percentage change.

Even within the top 10 the order would be shaken up if it were based solely on percentages. Fremantle would be propelled to the top of this group with a 12.3 per cent change.

The Cottesloe vibe

Long-time Cottesloe resident Mike Best drew on an iconic line from the movie The Castle to explain the suburb’s continued popularity. “It’s the vibe.”

Not surprisingly – given that he was a keen surfer and swimmer – the retired engineer said being close to Cottesloe Beach was a big drawcard.

“There’s a good vibe. In terms of the healthy lifestyle I’d compare it to some of those Sydney beaches like Bondi. There’s always people out running and walking, and being fit and healthy. It’s got a good feel about it.”

Mr Best and wife Dee, a retired journalist, moved to Cottesloe in 1995 after initially buying a home in North Perth when they married 35 years ago.

The Bests sold the Cottesloe home they built in 2009 for $6.5m last year. Like many empty nesters, they decided it was time to downsize as their three sons had moved out. The Bests bought a smaller house for about $3.5m, still in Cottesloe.

“We thought we may as well cash in a few of our chips and we were sitting on a big asset that we no longer really needed. It appeared to be a good time to sell,” Mr Best said.

They used some of the proceeds from their house sale to renovate their new home.

“We could have lived with what was there but we just wanted to put our own stamp on it – making it look like our house instead of someone else’s,” Mr Best said.

In 2012 Mr Best was able to retire from full-time work, having part-owned an engineering business, and now serves on a few company boards.

“I always said when the last kid finishes school I’ll finish work. I was lucky enough to be able to do that,” the 65-year-old said.

Ray White Cottesloe-Mosman Park senior sales executive Deborah Brady, who was the Bests’ agent, said a shortage of properties for sale was a major factor behind the Cottesloe’s strong price growth, and that low supply was being experienced across WA.

“We’ve got a lot of people who want to move from their bigger home that’s either on the river or on the beachfront and they just can’t find a smaller home to move into,” Ms Brady said.

“The shortage of stock is almost unheard of. There’s a tiny amount of stock for people to purchase so that’s keeping the prices up.”

Ms Brady said Cottesloe and Claremont were desirable suburbs due to their location, lifestyle attractions and connectivity, including transportation and local schools.

“I live in Cottesloe. I go down to the beach every morning and pop in and have a quick swim. It’s that lifestyle thing that is another layer and keeps driving that price growth,” she said.

Ms Brady said the Cottesloe-Claremont area’s strong growth in value was pricing some people out of the market.

“Some of the apartments are also selling for record prices. It is pricing people out of that market unfortunately,” she said.

This article first appeared in The Australian as Perth suburbs lead property growth rankings as Sydney makes a comeback