Adelaide and Hobart have outpaced Sydney and Melbourne for house price growth over the past 20 years, according to new valuation report from the Australian Property Institute.
Between 2005 and 2024, Adelaide’s median house prices soared 175.1%, just ahead of Hobart at 171.9%. Sydney (170.9%), Brisbane (169.4%) and Melbourne (169.2%) followed close behind, but the results challenge long-held assumptions about where the best investment returns lie.
For units, Hobart again led the way with 133.5% growth, followed by Adelaide (128.9%) and Melbourne (109.1%). Sydney and Brisbane underperformed the national average.
The report said that the smaller capital cities are increasingly outperforming their bigger cousins, despite drawing fewer migrants. While Sydney and Melbourne attracted the bulk of new arrivals, their housing markets delivered slightly lower returns.
These results suggest other forces, like affordability, supply constraints and lifestyle shifts, may have a bigger influence on long-term capital growth than migration alone.
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