Australia’s million-dollar suburb boom: The next hotspots for investors

Since the start of the pandemic in 2020, many of Australia’s property markets have experienced some extraordinary price growth.

Many locations, both city-based and regional, achieved unprecedented price increases with median house and unit prices soaring as demand hit new highs. Where once a million-dollar house or unit median was unusual, that recent growth has launched many locations into that club for the first time.

As of January 2025, there were 1,194 suburbs or towns with a median house price or median unit price of $1 million or more – 50 more than in September 2024.

These figures show that although price growth may have eased in some locations in the past six months, the number of million-dollar markets continues to increase throughout Australia.

And there are still plenty of opportunities for investors to find markets that are set to tip over into million-dollar markets in 2025.

The latest Hotspotting and Propertybuyer, National Million Dollar Hotspots report shows there are plenty of markets teetering on the edge of a million-dollar median.

They are the markets where price growth has been steady in recent years and demand remains strong. ith that trajectory set to continue, these markets will soon breach the million-dollar barrier.

They are also strong markets for investors, where rents have been rising, yields are solid and vacancy rates are low.

Residential properties line the Sydney suburb of Birchgrove in Australia.

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Million-dollar median

There is a distinct lure to investing in a suburb with a million-dollar median and it’s not just the prestige of the price tag. The magic of buying in a million-dollar suburb is its capital growth potential.

By reaching a million-dollar median, it’s already proven to be a desirable location where owner-occupiers and investors are prepared to pay top dollar to secure a piece of the action.

There are plenty of inner-city markets throughout Australia which already have million-dollar medians, but successful investors are those who find locations where prices aren’t just rising, but the fundamentals and amenities are in place to ensure ongoing solid price growth and increasing demand for properties in the suburb.

It’s essential when considering a million-dollar location to invest in that it meets a variety of criteria, not just price point. There needs to be ongoing demand for property and significant amenities to meet community needs, such as public transport, shops, schools and recreation spaces, whether that be beaches, parks or lakes.

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Employment opportunities

Infrastructure spending is also important, as is solid population growth and access to good local employment opportunities. These are factors that will keep buyers returning time and again to these suburbs and increased buyer demand is what will keep prices increasing to $1 million and beyond.

Southport on the Gold Coast is a good example of this. Within less than six months, the median house price in Southport, which was a selection in our October 2024 report, has breached the $1 million median mark.

It had a median house price of around $970,000 in September 2024, which hit $1.04 million in February 2025 – that’s a rise of $70,000 in just five months.

The suburb has achieved 15% median house price growth in the 12 months to February 2025 – and is an example of what can be achieved in the Million Dollar Hotspots.

Terry Ryder is the Managing Director of HotSpotting