Best Price Bracket for Perth, Brisbane and Adelaide

The data is pointing to a rare opportunity that's not only location-based, but based in price range as well. In this episode, we're going to talk about the price bracket no one's speaking of that could be set for serious growth in the coming years, discussing what the price range is, where it's potentially set for the most growth, and what you need to know about it as a property investor. I'm Joan Ma, the Senior Research Analyst at InvestorKit, now let's get into it. Now, in this episode, I'll be first talking about the price range, and then we'll discuss why that price range, and in the end, we'll do a city-by-city breakdown to discuss the specific range in Perth, Adelaide, and Brisbane. First, the price range.

What I'm talking about here is the middle range of house prices in each of these cities, Perth, Adelaide, Brisbane. It's not happening in every city because in the past three years, only Perth, Adelaide, Brisbane's house prices in the lower range, middle range, and higher range, and the relationship between them have shifted dramatically, and that is causing this opportunity. We all know that in the past three years, as interest rates went up and stayed high, affordable house markets have performed exceptionally well compared to the higher-priced markets. I'll give you a few examples. Playford, in the five years from 2020 to 2025, saw a 167% house price surge.

Onkaparinga, the outer ring region in Greater Adelaide, saw its house prices surging by 115% in just five years. In Perth, Swan's house prices increased by 111%, Queenana by 138%. Similar in Brisbane, Ipswich Inner, 118% surge, and Binley, 111%. But the issue is not just the price surge. It's actually the price gap closing between the lower-priced markets and the middle-range price markets.

I'm giving you two examples. In Adelaide, Onkaparinga is 40km south of the CBD, and now its median house price is $790,000. Well, Marion, just 12km south of the CBD, much closer compared to Onkaparinga, its median house price is just $890,000, only $100,000 higher than something so much farther from CBD with so much less infrastructure service. In the past five years, Marion's median house price increased by 78%. Technically, it's not bad at all.

It's very impressive five-year growth. But if we compare that with Onkaparinga's 115%, that's an almost 40% growth gap. And then in Perth, Swan is an area 40km northeast of the Perth CBD. Now its median house price is $760,000. In comparison, Belmont's Victoria Park, an SA3 just 5-10km southeast of the CBD, so basically across the river, the median house price there is $880,000.

With just $120,000 median price difference, you're looking at one really far from the CBD, a newly developed area, versus a just next to the CBD, well-serviced by infrastructure, well-established area. In the past five years, Belmont's Victoria Park's median house price increased by 71%, and that is again 40% lower than Swan's five-year growth of 111%. But why do we think this gap is supposed to be closed, or this gap is not sustainable? That is because all these middle-range priced areas, it's not just because they're closer to the CBD or closer to job opportunities, but also they are serviced better by infrastructure, such as schools, hospitals, and other amenities. Overall, they are offering a better lifestyle, and the improvement in infrastructure will need time.

For the gap to permanently close, we need the infrastructure service in the outer skirt areas or the affordable areas to materially improve, but that would take time. In just a few years, infrastructure gap will still be there, and therefore this price gap or property value gap won't remain so small. And another question is, why just the middle-range priced areas, not the upper quartile markets or the inner-city areas? That is because in the coming few years, we are still expecting high interest rates, and the higher-priced markets are more sensitive to interest rates and the financial environment. As long as interest rates stay high or relatively high, buyer demand for higher-priced markets would be somewhat limited.

Now, let's look at the city-by-city breakdown, starting from Perth. In Perth, we are looking at the price range of $800,000 to $1 million. Many outer suburbs in Perth have seen their house prices increase to $650,000 to $800,000 or even higher. At the same time, middle-tier areas like Belmont, Victoria Park, Canning, or Basewater, Bassendine still have house prices well under $1 million. And at this time, they are becoming relatively more affordable and more attractive.

As of the beginning of 2026, we are actually seeing price growth speeding up in these areas. For example, in Canning, inventory level has been coming down since early 2025. Now, it's just sitting at around one month of stock, while in many outer skirt suburbs, inventory is either stabilizing or increasing. Days on market has been declining as well since January 2025, and the three-month rolling median price, which is more sensitive to recent trends, is diverging up from the 12-month rolling median trend line. In the rental market, vacancy rate is sitting at 0.

6%, really tight, indicating not just tight rental market, but overall high housing demand. And in Adelaide, the price range is similarly $800,000 to $1 million. We're seeing locations within this price range increasing in market pressure. For example, Marion, the LGA, or SA3 we were just talking about. In this house market, inventory has been trending downward since mid-2025.

Now, it's even lower than one month of stock. Days on market as well is trending downward, and the three-month rolling median trend line is also diverging up from the more lagged 12-month rolling median trend line. Vacancy rate is really low at 0. 3%. That is one of the lowest in the greater Adelaide region.

In Brisbane, because the overall higher house prices, this price range is actually slightly higher, starting also from $800,000, but the upper bound is $1. 2 million. In Brisbane, on the growth corridors such as Ipswich and Logan City, house markets are still relatively affordable, and in 2026, they are still showing really high market pressure and high growth potential. But in the middle ring areas, especially those not too expensive, less than $1. 2 million suburbs, they are also gaining strength.

One example is the SA3 of Rocklea Arcadia Ridge. Inventory level was once close to four in 2024, before interest rates started to drop. But now, since late 2024, around 2. 3, 2. 4 months of stock.

Days on market was increasing before 2025, but now it is stabilized and also showing an early sign of starting to decline. In terms of price, the three-month rolling median price line is also diverging up from the more lagged 12-month rolling median trend line. In the rental market, conditions are tightening. Vacancy rate now is 0. 7%, already low, but it is still declining.

So housing demand is increasing. So in summary, the price gap between the traditionally affordable areas and the middle price ranged areas have closed a lot. But this gap is not sustainable in the near term. That is why we believe there will be serious growth happening to the middle price ranged areas. Maybe not now because our interest rates are still high, but as interest rates stabilize or even go down and more housing demand being squeezed out of the traditionally affordable areas or being attracted to the middle price ranged areas, the serious growth will be happening.

If you have any questions or any thoughts, leave your comments below. I'm Junge, the Senior Research Analyst at InvestorKit, and I'll see you next time.