Experts pick Australia's property investment hotspots for the year ahead - realestate.com.au

Experts have revealed the suburbs around Australia with the hottest prospects for property investors this year – and where savvy sellers have a chance to cash in.

The inaugural realestate.com.au Hot 100 identified the locations around Australia with the best prospects in 2023 and beyond, based on the insights of industry professionals.

Among them were a number of areas perfectly suited for prospective landlords, from immediate strong yields to long-term growth drivers.

And they’re pockets where potential vendors can capitalise on those appealing demand drivers.

New South Wales hottest investor suburbs

Experts say astute would-be investors should look outside the ritzy inner-Sydney pockets that tend to grab the lion’s share of attention.

East Tamworth

Famed as the home of country music, the regional NSW town of Tamworth is a fast-growing regional hub with a diverse economy and plenty of attractive attributes, local agent Sam Spokes from LJ Hooker said.

And East Tamworth, a leafy and elevated part of town on the fringe of the CBD, offers convenient proximity to services but with a more peaceful pace.

“With strong agriculture, mining, food processing, and industrial sectors throughout the region, our housing market is never [dictated] by the ups and downs of one industry,” Mr Spokes said.

“This, combined with an ever-growing CBD with national brands, Tamworth has become a one-stop shop for a lot of the New England region and north-west region of NSW.”

The regional NSW town of Tamworth has some good prospects. Picture: Getty

Tamworth Regional Council has a target of growing the population from 55,000 currently to 100,000 by 2040, ensuring consistent demand for housing, he added.

“This will set up investors with great capital growth and return on investment for a long time to come.”

The suburb’s median house price is $589,000 and the median house rent is $425 per week, delivering an average yield of 4.2%. The median unit price is $325,000 and the median unit rent is $320 per week, delivering an average yield of 5%.

Buyer’s agent Scott Aggett from Hello Haus picked East Tamworth as a Hot 100 suburb for its population growth potential and investment prospects.

Glenmore Park

Suburbs in the Greater Western Sydney region like Glenmore Park are perfectly positioned to capitalise on strong potential growth drivers, PropTrack senior economist Eleanor Creagh said.

This part of town boasts good relative affordability and has seen demand and price growth holding up better over recent times as values elsewhere have cooled, Ms Creagh added.

“Western Sydney is popular for buyers,” she said.

“The region is one of the largest economies in the country behind Sydney and Melbourne CBDs, and jobs, amenity, and affordability draw people to this area.”

Glenmore Park is in a rapidly growing region in Sydney's west. Picture: Getty

There’s also significant investment in infrastructure, such as the Western Sydney Airport at Badgerys Creek underway.

“The NSW Government is also investing investment in major projects like the Camden Valley Way, Bringelly Road, and Northern Road upgrades, and the Southwest Rail Link," said Ms Creagh.

The median house price is $1.02 million and the median house rent is $620 per week, delivering an average yield of 3.3%. The median unit price is $700,000 and the median unit rent is $420 per week, delivering an average yield of $3.7%.

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Buyer’s agent Kate Hill from Adviseable picked Glenmore Park as a Hot 100 suburb for its relative affordability, gentrification, infrastructure development, and investment prospects.

Victoria’s hottest investor suburbs

More affordable pockets that have good long-term growth drivers and potential for gentrification are worth checking out by investors, experts say.

Sunshine West

This Melbourne pocket has undergone significant change in recent times, putting Sunshine West on a broader range of buyers’ radars.

“Socio-economic and demographic shifts can underpin increases in demand and long-term value growth for housing,” Ms Creagh explained.

A growing list of local amenities have made the suburb more desirable, particularly with younger buyers and growing families.

“Sunshine West has seen an ongoing gentrification,” Ms Creagh pointed out.

“And with proximity to the CBD, parks and good schools, demand from buyers will continue.”

Buyers can find solid family homes for a relatively affordable price in Sunshine West. Picture: realestate.com.au/sold

A tidy three-bedroom, one-bathroom brick home at 67 Ridegway Parade, sitting on a 707sqm block, recently sold for $700,000.

The median house price is $735,000 and the median house rent is $380 per week, delivering an average yield of 2.8%. The median unit price is $564,500 and the median unit rent is $350, delivering an average yield of 3.7%.

Ms Hill picked Sunshine West as a Hot 100 suburb for its relative affordability, gentrification, good infrastructure, and investment prospects.

Belmont

The Geelong suburb of Belmont is the perfect mix of family friendly appeal and trendy amenity, local agent Tony Moorfoot from Buxton said.

“As a suburb it’s very central and this is definitely one of the main attractions for buyers, in particular those looking to invest,” Mr Moorfoot said.

“It has close proximity to the Barwon River, Highton Village, High Street shopping strip, and the Geelong CBD. The surf coast is also easily accessible.

“It’s the best area of Geelong to live in for access to public transport, medical centres, choices of shopping areas, and access to bike tracks. You really do get the best of both worlds.”

Geelong is increasingly popular among buyers. Picture: Getty

Belmont is also known for its great schooling options, parks, and playgrounds, making it sought-after by families, he said.

Despite all of those ticked boxes, the suburb’s broad range of dwellings tend to have a more affordable price tag.

The median house price is $750,000 and the median house rent is $450, delivering an average yield of 3.3%. The median unit price is $560,000 and the median unit rent is $393 per week, delivering an average yield of 3.7%.

Buyer’s agent Miriam Sandkuhler from Property Mavens picked Belmont as a Hot 100 suburb for its location, high level of amenity, family appeal, and investment prospects.

Queensland’s hottest investor suburbs

The Sunshine State saw an influx of property buyers during the Covid pandemic, as interstate migrants sought out a better lifestyle.

Eagleby

Demand for homes in the suburb of Eagleby, halfway between Brisbane and the Gold Coast, has surged over recent years, local agent Carlie Curtis from Ray White said.

Despite that, Ms Curtis said it still offers good value for money for those looking to buy – especially investors.

The median house price is $508,000 and the median house rent is $450 per week, delivering an average yield of 4.6%. The median unit price is $321,000 and the median unit rent is $338, delivering an average yield of 6.5%.

This two-bedroom, two-bathroom townhouse with a courtyard at 147 Fryar Road recently sold for just $285,000. Picture: realestate.com.au/sold

The area’s exceptional location is one of its main appeals, allowing locals easy access to the city and the beach, as well as an ideal lifestyle on the Albert River to the east and Logan River to the north.

“You can launch your boat on the ramp and be at Stradbroke in under half an hour,” Ms Curtis said.

“For many families, the location also means access to the abundance of local private and public schools, while industrial estates just down the M1 provide lots of job opportunities.”

Ms Hill picked Eagleby as a Hot 100 suburb for its relative affordability, gentrification activity, and investment prospects.

Bli Bli

Despite being in the centre of the Sunshine Coast, and thus boasting an exceptional location close to everything the region has to offer, Bli Bli has a quintessential “country feel” to it, local agent Natasha Hackenberg from Ray White said.

“Whether it’s tourist attractions, beaches, major shopping, the airport, or quality schools Bli Bli is so close to everything,” Ms Hackenberg said.

The suburb tends to attract young families and professionals, but appeals to a broad demographic given its location, she said.

“Affordable housing combined with current zero rental vacancy rates, the area continually produces an attractive yield for investors.”

Bli Bli is a picturesque and peaceful part of the Sunshine Coast. Picture: Getty

The recently opened Good Samaritan College, catering to prep through to Year 12, and a new $20 million tavern are among the infrastructure investments in the area.

The median house price is $865,000 and the median house rent is $660, delivering an average yield of 4.1%. The median unit price is $699,000 and the median unit rent is $530, delivering an average yield of 4.3%.

Ms Hill picked Bli Bli for its great location, high level of amenity, and investment prospects.

Canberra’s hottest investor suburb

The nation’s capital has traditionally been seen as a somewhat bulletproof suburb that can withstand downward pressure on home prices, making it an attractive investment prospect.

Narrabundah

The suburban enclave of Narrabundah in Canberra’s inner-south is a popular, leafy pocket valued for its excellent location.

Rental properties are highly sought-after and vacancy rates tend to remain low, local agent Bree Currall from Belle Property said.

“Some investors choose to rent out for the long-term to capture executive couples, defence and government employees, or families moving to Narrabundah simply to fall into a zone for a particular school,” Ms Currall said.

“Other investors choose to short-term let their properties, which works really well due to the proximity to the parliamentary triangle.”

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Narrabundah is seen as an entry level premium suburb that’s gentrifying rapidly, making it a prime position for capital growth, she added.

“It’s known for its wide leafy streets, green spaces, and level of amenity – the walking and biking trails of Red Hill Nature Reserve, strolls around the wetlands, a pitch on the baseball field, and excellent eateries including the famous XO restaurant, La Cantina, and Kita.”

Narrabundah is also in proximity to Manuka, Kingston, and Lake Burley Griffith, she said.

The median house price is $1.26 million and the median house rent is $695 per week, delivering an average yield of 2.7%. The median unit price is $565,000 and the median unit rent is $620 per week, delivering an average yield of 4.8%.

Peter Koulizos, program director of the Masters of Property at the University of Adelaide, picked Narrabundah as a Hot 100 suburb for its location and amenity.

South Australia’s hottest investor suburb

The property market in South Australia continued to grow during much of 2022, inspiring good levels of activity among local investors and those from interstate.

Craigmore

Nestled in Adelaide’s northern suburbs is Craigmore, where growing families and first-time buyers in search of a bargain flock.

Good amenity, convenient public transport links, a friendly community vibe, and proximity to bustling Munno Para make this suburb highly sought-after.

Craigmore is a growing pocket in Adelaide's north. Picture: realestate.com.au/sold

New to the market this week is 58 California Avenue – a three-bedroom, one-bathroom brick home a new kitchen and recently updated interiors, asking $349,000 to $379,000.

It’s indicative of the type of family homes to be found in the leafy, suburban neighbourhood.

The median house price is $412,000 and the median house rent is $400, delivering an average yield of $5.3%.

Ms Hill picked Craigmore as a Hot 100 suburb for its good affordability, forecast population growth, and investment prospects.

Western Australia’s hottest investor suburb

Perth’s housing market has held up better than other major capital cities, with continued buyer demand clashing with constrained supply.

Joondalup

The rapidly growing outer northern part of Perth is home to the popular suburb of Joondalup.

It makes up the urban centre of the region, Ms Creagh said, positioning it well for buyer demand and potential future growth.

“With ongoing infrastructure upgrades and increased employment opportunities, public and private investment, and amenity, a process of gentrification is already underway,” she said.

A modern four-bedroom, two-bathroom brick house at 8 Finchley Terrace, sitting across from a leafy park, recently sold for $754,000.

The median house price is $585,500 and the median house rent is $500 per week, delivering an average 4.9% yield. The median unit price is $345,000 and the median unit rent is $413, delivering an average yield of 6.3%.

Ms Hill picked Joondalup as a Hot 100 suburb for its infrastructure investment, population growth, amenity, relative affordability, and investment prospects.

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