Aussie suburbs set to boom in 2025

‘A new era in property is approaching’ according to Aussie real estate guru John McGrath and these are the suburbs set to benefit most in 2025.

Property guru John McGrath has revealed the postcodes he believes are set to boom in 2025.

The McGrath Report 2025 looks at trends for Australian markets for the year ahead and McGrath uses these to inform which markets he believes will perform strongly.

For 2025, he points to higher interest rates and a lack of property supply driving more Aussies to areas, or property types, they can better afford to live.

“Australians need more housing options in the areas where they want to live and work,” McGrath said.

“We believe we are approaching a new era in property.

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John McGrath has released his annual report, featuring the suburbs he expects to boom in 2025. Picture: Julian Andrews

“The age of 2 to 3 per cent mortgage rates is over, and many buyers are responding to tighter credit by moving to more affordable areas or buying smaller homes.”

Locations close to city areas, beaches and infrastructure have featured in McGrath’s picks for the year ahead.

SYDNEY SUBURBS SET TO BOOM IN 2025

Sticking mostly to the east coast, his preferred stomping ground, McGrath nominated neighbouring suburbs of Summer Hill and Dulwich Hill as his top picks in Sydney, reasoning that the inner west is getting “groovier”, while also benefiting from better access to the CBD via the light rail.

“Some of the best coffee in Sydney makes this cool precinct a no-brainer,” McGrath said.

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This home in Dulwich Hill broke the suburb record in 2023, selling under the hammer for $4.752m.

See the full list of Sydney and NSW suburbs set to boom in 2025

MELBOURNE AND VICTORIAN SUBURBS SET TO BOOM IN 2025

In Melbourne, McGrath likes Keilor East, noting that the suburb has the charm and lifestyle of Essendon, with “a much lower price tag”.

“Set to get a new train station as part of the Melbourne Airport Link, this suburb sits within the Essendon Keilor College school zone and is a stone’s throw from the M89 ring road, Highpoint Shopping Centre and vibrant Buckley Street,” he said.

See the full list of VIC suburbs

BRISBANE AND QLD SUBURBS SET TO BOOM IN 2025

In Brisbane, a surge of young professional and families moving into Springwood has this suburb poised for growth as older generations move out.

“Springwood is undergoing change,” McGrath said. “(It boasts) convenience, diverse housing options and a 36ha conservation park brimming with koalas and swamp wallabies.”

Further north, McGrath also sees plenty of potential for Townsville, which he says has become “cosmopolitan” in recent times.

The city “offers hatted restaurants, a growing number of breweries and distilleries and gorgeous beaches,” McGrath said. “Prices are still on the lower side … gross rental yield is among the highest in Queensland.

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Springwood homes have begun to modernise as the suburb gentrifies.

See the full list of QLD suburbs set to boom in 2025

HOBART AND TASMANIAN SUBURBS SET TO BOOM IN 2025

Departing the mainland, McGrath has included some Tasmanian hotspots in his 2025 predictions.

He believes Kingston is a suburb with great potential.

“Its location at the gateway to the Southern Outlet motorway means residents can reach the (Hobart) city centre in just 10 minutes,” McGrath said.

“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.”

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Kingston is a suburb with great potential. Picture: Supplied

Outside the capital, McGrath named Primrose Sands, a small seaside village to the east, as a “gentrifier hotspot” with a number of apartment projects in the works and a historically affordable house median of $50-0,000 primed for growth in coming years.

See the full list of TAS suburbs set to boom in 2025