Australia’s top 10 hottest property markets revealed as national conditions cool sharply

Six of Australia’s 10 hottest local government areas sit within Greater Adelaide, new data from Hotspotting’s June 2026 Price Predictor Index (PPI) has revealed, confirming South Australia as the standout performer in a quarter defined by tightening supply and a sharp rotation in market cycles.

The findings arrive as national conditions deteriorate at pace. Positive market classifications dropped from 52.1 per cent in March to 43.3 per cent in June, while declining markets surged 265 per cent in a single quarter — jumping from 132 to 482. Eleven of Australia’s 15 capital city and regional market jurisdictions recorded a fall in positive share.

Hotspotting Managing Director Tim Graham said the scale of disruption is reshaping the national map far more unevenly than headline figures suggest.

“This quarter lands in the middle of what we call ‘the mother of all disruption periods’,” Mr Graham said. “Three RBA rate rises, geopolitical trade uncertainty, cost-of-living pressures and Federal Budget changes have all hit at once, but the impact isn’t uniform. Some markets are cooling sharply, while others are still running incredibly hot with our new Thermometer methodology making those differences visible in real time.”

The Hotspotting Thermometer is a live-market pressure score that rates every LGA and suburb out of 100, drawing on inventory levels, days on market, sold-above-asking activity, vacancy rates and short-term price momentum. Unlike median prices — which record what has already happened — the Thermometer is designed to show where conditions stand now and where they are heading next.

The top 10 hottest LGA markets

Onkaparinga in South Australia leads the nation with a Thermometer score of 77 out of 100, followed by Mitcham (76), Palmerston in the Northern Territory (74), Marion in SA (73), Bayswater in Western Australia and Tea Tree Gully in SA (both 72), Campbelltown SA (71), Glenorchy and Kingborough in Tasmania (both 70), and Port Adelaide Enfield in SA (70).

Hotspotting Founder Terry Ryder said Greater Adelaide’s dominance reflects the tightest supply conditions of any capital city market in the country.

“When stock clears quickly, the live-market pressure becomes extreme. Inventory thins, days on market collapse, properties sell above asking, and vacancy disappears,” Mr Ryder said.

Palmerston’s position in the top 10 is notable given that only 18 per cent of its markets carry positive volume classifications. Mr Graham said this highlights one of the most important distinctions the PPI draws between the two measurement approaches.

“Sales volume is the single best forward indicator of price change, but it has blind spots at both ends of the cycle,” he said. “Palmerston looks subdued on volume, but our research shows demand is outpacing genuinely scarce stock. That’s why our rising and declining classifications help identify markets where the volume engine and the live-market engine are telling different stories.”

Perth’s sharp reversal

The June quarter confirms a decisive turn in Greater Perth, which was the dominant performer of the post-pandemic boom. Just 23.4 per cent of its 278 scoreable markets are now classified as positive — the lowest reading of any jurisdiction nationally. The surge in declining markets is heavily concentrated in Greater Perth, Greater Brisbane, the rest of Queensland and the rest of Western Australia.

Mr Ryder said the Perth reversal is a cycle rotation rather than a market collapse.

“Listings in Perth are still finding buyers at a reasonable pace,” he said. “What’s changed is the underlying demand trend. The volume signal has rolled over, so, we’re witnessing the cooling in real time. But it’s not a crisis. Instead, it’s a normal cycle turn happening faster than usual because disruption is hitting buyer sentiment.”

By contrast, Greater Melbourne and Greater Sydney continue to outperform media narratives about falling prices. Melbourne sits at 49.1 per cent positive markets and Sydney at 47.3 per cent — both well above the national average — supported by population growth, employment depth and infrastructure investment.

“These are the two largest transaction markets in Australia,” Mr Graham said. “They retain the broadest base of positive markets at scale, and their resilience is a reminder that price headlines often miss what’s happening underneath.”

Regional divergences

Regional South Australia emerged as the strongest mainland regional performer, recording 49.1 per cent positive rankings across 57 markets. The Barossa, Clare Valley and Riverland districts continue to show durable conditions rather than boom-cycle volatility, according to the PPI.

“Regional SA is the unsung hero of the June quarter,” Mr Ryder said. “It’s consistent, it’s stable, and it’s outperforming every other mainland regional jurisdiction.”

The Rest of the Northern Territory technically leads the nation at 72.7 per cent positive, but with only 11 scoreable markets it is treated as a statistical outlier in the PPI rather than a representative jurisdiction.

The broadest divergences in the June quarter are occurring within states rather than between them. The Rest of WA sits 25.3 points above Greater Perth; Melbourne outperforms the Rest of Victoria by 12.4 points; and Regional South Australia sits 10 points above Greater Adelaide.

Mr Graham said these intra-state splits carry direct implications for both vendors and buyers.

“In cooling markets, delaying a sales campaign can cost vendors money, but in rising markets, it supports stronger pricing confidence,” he said. “And for homebuyers and investors, it highlights where paying a premium is justified and where negotiation power is shifting back in your favour.”

Mr Ryder said no investor or agent should rely on national aggregates alone when assessing market conditions.

“Anyone reading the national headline without looking at the jurisdiction breakdown will misread the market,” he said. “This is not one market moving in one direction – it’s many markets moving at very different speeds at the same time.”