Property Market Update Q2 2025: Key trends across New South Wales, Queensland and Victoria

As Q2 2025 comes to a close, InfoTrack’s latest Property Market Update highlights a dynamic and evolving landscape across Australia’s eastern states. In New South Wales, Queensland, and Victoria, shifting buyer preferences, changing suburb demand, and evolving property types are reshaping the market. For real estate agents, these insights offer a valuable opportunity to sharpen local expertise, anticipate client priorities, and focus efforts where demand is rising.

From first home buyer hotspots in Western Sydney, the resurgence of inner-city living in Queensland, and the continued growth in Victoria’s outer suburbs, here’s what’s driving market momentum this quarter.

Trends in property types in New South Wales and Queensland

Across the eastern seaboard, houses remain the most in-demand property type, but subtle shifts in buyer behaviour are pointing to changing priorities.

  • New South Wales: Houses continue to account for the majority of purchases, though market share has dipped slightly from 60.14% in Q1 to 59.73% in Q2. Vacant land was the only property category to record growth, increasing from 8.33% to 9.45%. This suggests growing interest in new builds and custom homes, particularly in emerging development corridors.

    Among first-home buyers, strata properties remain the preferred choice, with purchases rising from 51.66% in Q1 to 53.24% in Q2. This trend reinforces the importance of affordability and accessibility, as many buyers are entering the market through apartments and townhouses rather than standalone homes.

  • Queensland: Houses continue to dominate in the sunshine state, now making up 60.96% of purchases.

    Vacant land also saw its highest share in a year at 12.72%, suggesting increasing buyer interest in land-and-build packages, likely supported by infrastructure development in growth areas. For context, vacant land recorded 11.41% in Q1 2025, 12.25% in Q4 2024, and 12.35% in Q3 2024, making Q2’s figure the strongest yet.

    In contrast, strata properties declined to 26.32%, indicating a possible cooling in apartment demand, particularly outside major urban hubs.

Standout suburbs: postcodes where buyers are heading

New South Wales: Western Sydney holds strong while coastal regions climb
  • Postcode 2765, covering Marsden Park, Box Hill and 11 other suburbs, retained its position as New South Wales top-performing postcode. This reflects consistent demand in Sydney’s north-west growth corridor, supported by ongoing residential development and infrastructure investment.

  • A standout surprise was postcode 2540, which entered the top 10 for the first time.  Covering coastal destinations like Huskisson, Hyams Beach, and Callala Bay in the Jervis Bay region, this area is benefiting from increasing demand for lifestyle-oriented properties. With remote work still a factor, buyers are prioritising natural beauty, community connection, and recreational amenities.

  • Greater Western Sydney remains dominant among first home buyers, with postcode 2170, covering Liverpool, Moorebank, and nine other suburbs, holding the top spot. Its appeal is likely driven by affordability, strong transport links, and a range of new developments.

    Notably, only three postcodes in the Q2 top 10 for first home buyers (2560, 2250, and 2112) fall outside Greater Western Sydney, further highlighting the region’s significance.

Queensland: Surfers Paradise surges and fringe suburbs thrive
  • Surfers Paradise reclaimed its crown as Queensland’s top suburb for residential unit sales in Q2, with a clear lead over other suburbs. This is not just a reflection of popularity, but a testament to the suburb’s resilience and enduring appeal. Beachfront living, high-rise apartments, and sustained investor interest continue to make Surfers Paradise a standout performer, even amid broader market fluctuations.

  • Newstead, a new entrant to the Top 10 Suburbs for Residential Units, jumped straight to second position. Its inner-city location, luxury apartment offerings, and vibrant lifestyle are attracting young professionals and downsizers alike. Alongside Fortitude Valley and Brisbane City, it signals renewed demand for premium inner-urban living.

  • On the housing front, Springfield Lakes and Caboolture continue to battle for the top spot in the Top 10 Suburbs for Houses. These outer-metro locations in Ipswich and Moreton Bay combine affordability with family-friendly amenities, making them highly attractive to upgraders and first-home buyers. Ormeau rose from sixth to third place. Strategically located between Brisbane and the Gold Coast, it’s appealing to buyers seeking balance between lifestyle and commuter access.

    Narangba, Kirwan, and Yarrabilba are new entrants to the list in Q2 2025, with Kirwan the only suburb featured outside the South East Queensland region.

Victoria: The West is on the move
  • While Melbourne and Tarneit continue to lead in sales, Werribee is the standout this quarter, jumping from fifth to third place. With strong transport links, affordability, and a growing community, Werribee is fast becoming a major residential hub.

  • Several new suburbs entered Victoria’s top 10 this quarter, including Clyde North, Mickleham, and Armstrong Creek, all located in Melbourne’s outer west or near Geelong. Their inclusion underscores growing buyer demand for affordable land, new developments, and family-friendly communities in key growth corridors.

What this means for real estate agents

InfoTrack’s Q2 data offers a clear picture of where buyer interest is rising and where opportunities lie for agents.

  • Focus on the fringes: Affordable and well-connected fringe suburbs are booming across New South Wales, Queensland, and Victoria. Understanding the nuances of these markets can help agents better position listings and attract motivated buyers.

  • Tap into strata and land trends: In New South Wales, strata remains the preferred choice for first-home buyers. In both New South Wales and Queensland, vacant land is gaining traction, a potential goldmine for agents working with developers or custom-home buyers.

  • Understand regional and lifestyle shifts: Suburbs like 2540 (New South Wales coast) and Kirwan (North Queensland) prove that lifestyle-driven purchasing is still going strong. Regional migration and flexible working are shaping a more decentralised market, and agents who understand these trends will be better equipped to serve this new wave of buyers.

While affordability, location, and lifestyle remain the core drivers of decision-making, Q2 2025 reveals a market full of nuance and opportunity. For agents, staying ahead of these trends isn’t just helpful, it’s essential. Whether you’re targeting first-home buyers, upsizers, or investors, this data gives you a clear advantage in understanding where the market is heading, suburb by suburb.

Dive into InfoTrack’s Property Market Update here.

Property Market Update: Discover data that empowers you