Smaller markets lead growth in housing sector

Sales activity rises in smaller capitals and regional hubs as investor confidence returns

Smaller markets lead growth in housing sector

Darwin and regional South Australia have emerged as top performers in property market growth this year, according to Hotspotting’s Autumn 2025 Price Predictor Index, with the latest data showing smaller and less prominent markets outperforming some of the country’s largest cities in terms of sales activity and upward trends.  

Darwin saw a significant increase in buyer activity, with sales volumes jumping 49% since the December quarter — almost double year-on-year levels. Key growth areas include Palmerston suburbs like Durack and Rosebery, and unit markets in coastal precincts such as Nightcliff and Parap.  

Regional South Australia posted a 47% year-on-year rise in transactions, with only one market in decline. Growth is concentrated in areas such as Alexandrina and Victor Harbor, with towns like Kadina and Strathalbyn also reporting stronger activity.  

“Darwin has emerged as the standout performer, with 79% of its markets ranked positively, driven by surging sales volumes and rising demand,” said Hotspotting director Terry Ryder (pictured above). “Regional South Australia continues to deliver quietly consistent results, with two-thirds of markets classified as rising or stable, while Melbourne is staging its strongest comeback in years, with 63% of suburbs on an upward trajectory.”  

Ryder added that while major cities often draw the most attention, “the best opportunities for growth aren’t always in the largest or loudest markets.”  

Meanwhile, Hotspotting general manager Tim Graham highlighted growing interest in the more affordable unit segment, particularly in markets such as Sydney and Canberra.  

“These markets have become a more prominent part of the recovery story in cities like Sydney and Canberra, where attached dwellings are increasingly in demand and leading the growth in some locations,” Graham said.  

He also pointed to broader signs of market revival across the country. “At a national level, we’re also seeing a shift in market sentiment. Investors are returning,” Graham said. “Transaction volumes are rising; and across much of the country, we’re witnessing a broader pattern of recovery and growth take hold.”  

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