22 hotspot suburbs to watch in 2025

It's been a big year for the property market. The value of residential real estate hit $11 trillion at the end of September - an increase of $900 billion over 12 months, according to CoreLogic. So what are things looking like for 2025?

McGrath Estate Agents CEO and founder, John McGrath, says there are significant changes afoot that will impact buyers and sellers.

"The age of 2% to 3% mortgage rates is over, and many buyers are responding to tighter credit by moving to more affordable areas and/or buying smaller homes," says the property expert In the 2025 McGrath Report.

Stronger activity among baby boomers is also likely to affect property values. "Baby boomers are retiring, downsizing, buying investments, and helping their kids buy their first homes," explains McGrath. He anticipates that many boomers will make a seachange over the next few years, "taking generous budgets to comparatively affordable coastal towns, with a steady price uplift inevitable in the most popular locations".

In the report, McGrath also reveals his top suburb picks across the country, with a focus on the eastern seaboard. Here are the locations he thinks have strong growth potential. 

Sydney and surrounds 

Summer Hill/Dulwich Hill
As the inner west gets groovier and groovier, and the Light Rail makes it a short tram ride into the CBD you can no longer resist the attractiveness of these little sleeper villages. Some of the best coffee in Sydney makes this cool precinct a no-brainer.

Glebe
This once working-class suburb on the edge of the CBD seems to have slipped under the radar by most. Can't fathom why. A five-minute stroll to the city, Sydney University, UTS, Darling Harbour and Broadway Retail. What more do you need to realise this sleeping giant is about to awaken?

Millers Point
An unbeatable spot with easy access to city life. It's a short stroll to the Barangaroo precinct and the new Metro station, or the bustling charm of The Rocks. The area has gentrified with the transformation of many heritage terraces with stunning harbour views. Subdued price growth during the COVID years has created good buying opportunities today.

Eastlakes
Handily positioned between the airport and the CBD, young families should be investigating this suburb. A vibrant mix of multicultural groups resembling Paddington and Surry Hills in the 80s, it offers a mix of affordable apartments and cottages, allowing upgraders the opportunity to buy a house for under $2 million. Why wouldn't you?

Bardwell Park 
Bordering the prestigious inner west enclave of Earlwood, this little pocket must be on your shortlist. If you play golf, it has a course. If you work in the CBD, it's a few stations away. And if you like a strong long black you can take your pick of emerging cafes.

Long Jetty (Central Coast)
This sleepy little beachside village was up until fairly recently 'somewhat unfashionable' if you can believe it. Well, those days are over and this little jewel in the crown remains some of the best value on the east coast. Work from home and commute to Sydney a couple of days a week? Sounds like heaven to me.

Melbourne and surrounds

Keilor East
Set to get a new train station as a part of the Melbourne Airport Link, this suburb sits within the Essendon Keilor College school zone and is a stone's throw from the M80 ring road, Highpoint Shopping Centre and vibrant Buckley Street in Essendon. Keilor East has all the charm and lifestyle of Essendon with a much lower price tag - its median house price is $1,007,550, compared with Essendon's hefty $1,800,000.

St Kilda East
Just slightly inland from its namesake and arguably more famous beachside suburb, this little hamlet has parks, transport and good schools on its doorstep. It has more of a suburban feel than its more bustling neighbour, with leafy streets and art deco-style homes and apartment blocks, but it's just a short tram ride into the heart of St Kilda. St Kilda East is ideal for investors, downsizers and first-home buyers alike.

Glen Waverley
With Monash and Deakin Universities just around the corner and a plethora of restaurants, shops and transport options at its disposal, this eastern suburb doesn't need to be close to the city. It also has two train stations - one of which is set to become part of the Suburban Rail Loop - and several bus routes. Glen Waverley could also be poised to be another job hub for Melbourne, with many businesses and government agencies, including the Department of Education, already calling it home. This suburb is one to watch.

Altona North
With the West Gate Tunnel due for completion in 2025, the west is set to become more connected than ever to the CBD and the rest of Melbourne. Less pricey than its waterside neighbours to the south, Altona North still boasts lifestyle, with its golf course, Kororoit Creek Trail and multiple sports centres. It's also just a short drive to the Scienceworks museum and Yarraville restaurants and shops, and is only 10km from the city.

Spring Gully (Regional Victoria)
With its median house price increasing by 11.5% in the year to June 2024, yet still staying at a relatively affordable $680,000, this suburb on the edge of Bendigo is one to watch. Closer to Melbourne than the Bendigo CBD and surrounded by greenery, Spring Gully combines the best of both city and country living. And the suburb is set for a boom, thanks to plans for a new housing development, school and general store.

Brisbane and surrounds

Springwood
Springwood is undergoing change as young professionals and families move in, and baby boomers move out. With the south-western suburb boasting convenience, diverse housing options and attractions such as a 36ha conservation park brimming with koalas and swamp wallabies, it is expected to remain popular among buyers.

Forest Lake
Brisbane's first master-planned community when built in the early 1990s, the south-western suburb of Forest Lake is now coming into its own. Centred around a man-made lake, properties here offer more bang for your buck than in the inner city - and people are starting to take notice.

North Ipswich
Located on the Bremer River 40km west of the CBD, the historic suburb of North Ipswich is set to benefit from improved Olympics public transport and infrastructure, including the $30 million North Ipswich Sport and Entertainment Precinct. It's also a great place to nab a Queenslander at a fraction of the price you would expect to pay closer to town.

Caloundra West (Sunshine Coast)
Caloundra West has long played second fiddle to the neighbouring and arguably more glamorous seaside suburb of Caloundra. This is now changing, as Sunshine Coast buyers take an interest in Caloundra West's less expensive housing. What's more, the suburb's location close to the coast and the new Stockland Aura development makes it an appealing lifestyle choice.

Townsville (North Queensland)
Savvy sea changers are snapping up properties in this surprisingly cosmopolitan city, which offers hatted restaurants, a growing number of breweries and distilleries and gorgeous beaches. Prices are still on the lower side compared to many other parts of Queensland and gross rental yield is among the highest in Queensland, making Townsville a safe bet for both investors and owner-occupiers.

Tasmania

Kingston (Hobart)
Famous for its beach, this suburb's location at the gateway to the Southern Outlet motorway means its residents can reach the city centre in just 10 minutes. With a huge amount of land still available for development and talk that it could be the location of a performance centre for Tasmania's new AFL club, Kingston is an area primed for growth.

North Hobart (Hobart)
Cool and vibrant, North Hobart attracts a hip crowd thanks to its nightlife and trendy eateries. The predominantly older-style housing stock has been injected with new life recently thanks to luxe developments like The Rox which will lift the suburb's profile and potentially edge it closer and closer to a $1 million median value.

Legana (Launceston)
Although considered to be on the outskirts of Launceston, this quaint semi-rural hub is only a short 15-minute drive into the centre of town, making it perfect for those who want to feel a little removed from the bustle. What's more, completion of the 350-place Legana Primary School at the start of the 2025 school year will be sure to attract young families to the suburb.

Latrobe (Devonport)
Plenty of land releases and development in the past decade make this semi-rural pocket outside of Devonport a neighbourhood to watch. And if the 9.6% jump in median house prices continue, it could prove a happy investment, particularly for first-home buyers who will rejoice at the $581,000 median house value.

Primrose Sands (Regional Tasmania)
A tiny seaside hamlet located midway between Hobart and Port Arthur, Primrose Sands has historically been best known for its affordable housing. It's now emerging as a gentrifier hotspot with some new private apartment developments lodged with Sorrell Council. Known for its beautiful beach, the median home value of $500,000 is predicted to take off in coming years.