Southern Highlands property market in 2025: what buyers need to know

Name: Loan Market Access Goulburn
Brand: Loan Market
Rating: 5 (79 reviews)

Key takeaways:

The Southern Highlands property market is showing clear signs of stabilizing at the bottom of the property cycle, making it an ideal time for buyers to secure value before prices rise again.
Ongoing city migration, permanent remote work arrangements and the growing demand for larger acreage blocks are continuously fueling buyer interest in regional townships.
Pockets within the region offer varied opportunities, from prestige postcodes like Bowral and Burradoo to growing family hubs like Moss Vale and Mittagong.

With its rolling hills, cool climate, and charming townships, the Southern Highlands continues to attract a diverse mix of buyers. Whether you’re a local upsizer, a Sydney tree changer, or a seasoned investor, understanding where the Southern Highlands property market in 2025 is headed can help you make the right move at the right time.

This guide walks you through where the market is in the current cycle, the factors driving demand, and the Southern Highlands suburbs to buy if you’re looking for lifestyle, growth potential or both.

The current state of the market

The Southern Highlands property market in 2025 is stabilising after a period of price moderation and softer sales conditions. According to PropTrack, the median property price in Bowral as of September 2025 is $1,530,000, representing a 7.3% decline year-on-year.

While this drop reflects the broader market correction seen across many regional areas, there are now clear signs of recovery, with sales volumes rising and open home attendance increasing.

Many experts would say we’re currently sitting at the bottom of the property cycle. That means prices are relatively steady, vendors are realistic, and buyer confidence is starting to rebuild. This part of the cycle is often when value opportunities are most accessible – before price growth returns in full swing.

So if you’ve been waiting for the right time to buy, this could be it.

Why demand is picking up

Several long-term trends are supporting the rebound of the Southern Highlands property market in 2025:

Ongoing city migration: The region remains a top destination for Sydney and Canberra buyers seeking lifestyle over congestion. Many are cash buyers purchasing without the need for finance, using the proceeds from city sales to secure a Highlands home.
Hybrid and remote work: The work-from-home shift is here to stay for many industries, making the Highlands a practical alternative to metro living.
Appeal of larger blocks and acreage: Buyers want more room for families, hobbies, pets and privacy, and that means acreage properties and lifestyle blocks continue to attract strong interest.
Infrastructure and amenities: Towns like Moss Vale and Mittagong have developed significantly in recent years, offering quality schools, childcare, healthcare and retail facilities, which is drawing in younger families.
Tree changers seeking permanence: Unlike in previous cycles, many buyers are not purchasing holiday homes—they’re making a permanent shift, bringing children, schools and long-term plans with them.

For those considering Southern Highlands investment, these demand drivers point to strong fundamentals for both capital growth and rental returns over time.

Ready to see how much you can borrow or get professional advice?

Book a free chat today

Southern Highlands suburbs to watch in 2025

From prestige postcodes to rising family hubs, the Southern Highlands offers a diverse mix of townships for buyers at different life stages. Here’s a more detailed look at the Southern Highlands suburbs to buy in 2025.

Bowral

The Bowral property market continues to be the region’s benchmark. With high-end properties, leafy streets and a thriving café and retail scene, Bowral remains a popular choice for affluent buyers and downsizers leaving Sydney.

Strong demand and limited stock have kept prices resilient, especially for character homes and properties within walking distance of town. Buyers here are generally seeking quality, lifestyle and prestige.

Median house price as of September 2025: $1,530,000
Annual growth rate: Down 7.3%
Key buyers: Retirees, downsizers, prestige buyers

Moss Vale

One of the fastest-growing towns in the Highlands, Moss Vale real estate trends are pointing toward steady demand and ongoing development.

It’s popular with young families and professionals thanks to new housing estates, established schools and proximity to Bowral. Recent infrastructure upgrades have further increased its appeal as a practical place to live.

Median house price as of September 2025: $980,000
Annual growth rate: Down 5%
Key buyers: First home buyers, families, investors

Mittagong

As the gateway to the region, Mittagong is often the first town buyers consider when exploring a Southern Highlands investment or tree change. Its affordability and location close to the Hume Highway make it popular with commuters and buyers looking for a balance of value and accessibility.

Median house price as of September 2025: $1,155,000
Annual growth rate: Up 16.4%
Key buyers: Retirees, first home buyers, Sydney commuters

Burradoo

Burradoo remains the Highlands’ most prestigious address. Grand homes, generous blocks and leafy streets define this sought-after enclave. While price points are higher, Burradoo offers long-term value for those looking for lifestyle and luxury.

Properties here often sell quietly or off-market, with demand driven by those looking to secure a legacy property in one of NSW’s most desirable postcodes.

Median house price as of September 2025: $2,517,500
Annual growth rate: Up 0.5%
Key buyers: Prestige homeowners, returning expats, retirees

To see how the Southern Highlands compares to other economically resilient areas in NSW, it is a good idea to read our guide to the key growth drivers in leading NSW regional property markets.

Buying property in the Southern Highlands? Finance matters

Relocating from the city or buying a second property in a regional area can come with some extra finance considerations. Lender policies can vary for acreage properties, lifestyle blocks or self-employed income, and approval timelines can be slower in some cases.

That’s where we come in.

At Loan Market Access, we have brokers serving a variety of suburbs who understand both the lending landscape and the Southern Highlands market. We work with over 30 lenders and can help you:

Understand your borrowing capacity
Compare home loan options based on your situation
Navigate lender policy for regional purchases or acreage
Manage pre-approvals, valuations and settlement timelines
Tailor finance strategies for owner-occupiers and investors

If you’re buying property in the Southern Highlands, it pays to have a broker who knows the local market as well as the lending landscape.

Final thoughts

The Southern Highlands property market in 2025 offers a unique mix of opportunity and lifestyle. With buyer confidence gradually returning, market conditions stabilised and demand drivers strengthening, it’s an excellent time to take the next step.

Whether you’re looking for a forever home, a prestige retreat or a long-term investment, the region offers choice, value and strong fundamentals for growth.

The key is acting early, doing your research and getting the right guidance before competition returns in full force.

Want to understand your borrowing power before making your move? Get in touch with Loan Market Access to discuss your goals and compare loan options. We’ll help you work out what you can afford and get you ready to buy with confidence.