Some Suburbs Remain Untouched as Australia’s Property Market Shifts

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In an increasingly volatile property market, a small number of Australian suburbs have managed to defy the broader economic pressures impacting buyers across the country. While affordability has pushed most Australians further out from their preferred areas, creating what economists call a “spillover effect,” a new report reveals there are still elite suburbs that remain firmly out of reach, regardless of market trends.

According to a comprehensive analysis of median house price data from 1,339 suburbs across Australia’s seven capital cities between 2022 and 2025, certain high-end areas have maintained their sky-high values without compromise. These “fortress suburbs,” as they’re being dubbed, show little to no signs of downward pressure or dilution from neighboring affordability shifts.

The so-called spillover effect refers to the phenomenon where homebuyers priced out of premium neighborhoods move to nearby, more affordable suburbs, thereby pushing up prices in those areas as demand surges. However, fortress suburbs appear resistant to this pattern. These are not just wealthy enclaves; they are economic strongholds where the usual market forces have little sway.

Leading the pack is Sydney, which dominates the list with five suburbs: Bellevue Hill, Mosman, Double Bay, Dover Heights, and Woollahra. Melbourne’s ultra-affluent Toorak and Adelaide’s North Adelaide also cut, solidifying their reputations as long-standing sanctuaries for high-end buyers.

Experts say these suburbs hold their value thanks to a mix of historical prestige, limited housing supply, top-tier schools, proximity to business districts, and exclusive amenities. According to CoreLogic (a leading property data provider), this combination makes them uniquely insulated from the broader market correction experienced elsewhere.

“Buyers in these areas aren’t as sensitive to interest rate changes or broader economic shifts,” said Tim Lawless, Head of Research at CoreLogic. “They tend to be more financially secure, and that gives these suburbs a resilience we don’t see in the rest of the market.”

The divide in Australia’s housing landscape is growing clearer. While average Australians, especially younger and working-class families, are forced to chase affordability, typically in the outer ring of metropolitan areas, elite suburbs seem to operate on a different set of rules. These locations continue to attract wealthy domestic and international buyers, with cash transactions often outpacing those relying on traditional financing.

The data also underscores a broader concern: housing inequality. With the current government’s immigration-heavy policies inflating demand, everyday Australians are finding themselves further priced out, while well-established and foreign-funded buyers lock up premium locations.

What’s most notable is that while other suburbs are vulnerable to boom-and-bust cycles, fortress suburbs stay stable. They are largely immune to housing oversupply, rental market fluctuations, and even rising interest rates from the Reserve Bank of Australia (RBA).

This trend raises important questions about the future of housing accessibility and the role of government planning in addressing it. Instead of meaningful reform, the political establishment seems more concerned with expanding the population than protecting the interests of current Australian residents, an approach that’s compounding the problem.

For those looking to break into these fortress suburbs, the reality is harsh: without significant capital, the dream remains just that. As the market continues to evolve, one thing is clear: these elite postcodes are not going anywhere. And for now, they stand as symbols of both enduring value and a deeply unequal housing system.