A new report highlights 25 Australian locations where low supply is driving property prices higher.

The analysis by InvestorKit examined 330 regions and identified the nation’s most undersupplied markets, spread across Western Australia, South Australia, and Queensland.

InvestorKit founder Arjun Paliwal says the supply shortage has shifted significantly since 2023, moving from major capital cities to smaller capitals and regional areas.

He says a lack of supply is what drove price growth throughout Australia in 2024.

“Our forecast, especially for the seven regional centres, is that they will all see upwards of 10% capital growth in 2025,” he says.

The 25 most undersupplied locations include:

Queensland: Cairns South, Townsville, Mackay, Rockhampton, Gladstone, Forest Lake–Oxley, Carindale, Toowoomba, Darling Downs–East.

South Australia: Prospect–Walkerville, Mitcham, Port Adelaide–East, Onkaparinga, Charles Sturt, Marion, Tea Tree Gully.

Western Australia: Fremantle, Bunbury, Bayswater–Bassendean, Joondalup, Belmont–Victoria Park, Canning, Stirling, Cockburn, Melville.