Australia’s top 20 property hot spots in which to invest

If you’re looking to invest in a property, a new list of our nation’s 20 best options can tell you where to splash your cash.

NEW South Wales has dominated in a new report identifying Australia’s top 20 best towns and suburbs to invest.

However Queensland scooped numbers one and two positions, with Brisbane’s Woolloongabba taking the top spot, followed by the Gold Coast’s Burleigh Heads.

Members Equity Bank – also known as ME Bank – commissioned national planning and urban economics consultancy Ethos Urban, to develop the list.

Qualitative and quantitative criteria were applied to identify suburbs with the best investment prospects, with factors including new transport infrastructure, and how it would reshape the investment landscape across the range of suburbs; average rental yields; recent population growth; median house prices; and average rental prices, together with lifestyle appeal measurables such as the availability of coffee shops and cafes.

Chris McNeill, director of Ethos Urban and an urban and regional economist of 25 years, said a common theme that really stood out in the top 20 was the “huge impact that new transport infrastructure has on creating investment opportunities in a suburb.”

“Woolloongabba, for example, is already serviced by two train stations and the new Cross City Rail Project will provide a new line running directly under the suburb, increasing connectivity and changing the way people use the area,” he said.

“This will only be bolstered in the coming years as Brisbane prepares its infrastructure for the 2032 Olympics.”

The list captures all levels of investment, from apartment-focused buying in Five Dock in Sydney, South Melbourne or Claremont in Perth to larger freestanding home opportunities in up and coming suburbs such Yanchep, WA or Preston, Victoria.

Mr McNeill said NSW was a clear winner when it came to investment opportunities for Australians, claiming an impressive nine spots in the top 20 national list.

Five Dock (No. 3), Rozelle (No. 5), Parramatta (No. 7) and Crows Nest (No. 8) all secured spots in the top 10.

“Key transport infrastructure projects like the Sydney Metro South West Project will enhance connectivity to the CBD from areas including North Sydney and Crows Nest, bolstering the already well-established apartment market and coffee scene,” he said.

“Five Dock, Rozelle, Parramatta, Pyrmont (No. 15) and Concord (No. 19) will significantly benefit from the high-speed, high-frequency metro line connecting them to the Sydney CBD. “This adds to their appeal for investors following recent growth in rental prices, median house prices and change in white-collar workers”.

Queensland claimed five spots in the top 20, and Mr McNeill said investment in the Gold Coast, as well as Woolloongabba, was key to the suburbs’ success.

Properties in Woolloongabba are standouts for investors.

“The new Cross City Rail and the Burleigh Heads Light Rail will turbo-charge value, along the picturesque coast line of the Gold Coast, adding to its already valuable apartment living and growing retail focus, creating greater connectivity to both Coolangatta and Surfers Paradise for the three Gold Coast suburbs of Burleigh Heads (No. 2), Mermaid Beach (No.17) and Miami (No.18).”

Victoria claimed three spots in the top 10, including North Melbourne (No.4), Preston (No.9) and South Melbourne (No.10).

“The Andrews Government’s investment in removing level crossings is creating change around Victoria. For instance, upgrades to safety and amenities in Preston, have significantly improved the investment prospects for the north Melbourne suburb.

“The Melbourne Metro upgrade will also see the already booming South Melbourne be the perfect spot for apartment investing. With connectivity to Albert Park, good investment returns and capital growth, and lively coffee culture, what’s not to love.”

Western Australia joined Victoria with three spots in the top 20, covering diverse areas from wine country, to the beach to the leafy well-regarded suburbs perfect for apartment investments.

“The new growth area of Ellenbrook (No.6), with its wineries and masterplan estate took out sixth place thanks to WA’s investment in the Ellenbrook Rail Extension, connecting more than five suburbs,” Mr McNeill said.

“Yanchep’s (No.11) beautiful beaches and coastal township is also set to benefit from the Yanchep Rail Extension, making the journey to Joondalup just a 30-minute commute, while Claremont (No.16) in Perth’s leafy western suburbs will benefit from the Claremont station upgrade, making it for a perfect residential apartment investment opportunity.”

Leafy Claremont will be made even more appealing by the Ellenbrook Rail Extension.

While the ACT, South Australia, Tasmania and Northern Territory, had no entries in the top 20, this did not suggest they were lacking in favourable investment options, Mr McNeill said. “Based on the statistical approach and methodology applied, it is simply that the most impactful transport projects presently being undertaken are in NSW, Victoria, Queensland and Western Australia,” he said.

ME’s chief economist Peter Munckton said there was no doubt investors were back in the market after an absence due to Covid lockdowns and huge price growth in many areas.

He doesn’t believe the Reserve Bank of Australia will raise the official cash rate until the second quarter of 2023.

“Property investment should be a three to five-year strategy,” he said. “My advice – only borrow what you can afford, take a long-term horizon view and make sure you choose a good property in a good location at the right price.”

ME CEO, Martine Jager it was important to helping all Australians get ahead when it came to property.

“We know many people across the country spent the Covid-19 lockdowns reviewing their financial goals and are now looking to take the next step in achieving them,” she said.

“The ME best places to invest list provides quality information which will help investors narrow their property search and find the ideal investment.”

THE TOP 20
1. Woolloongabba, QLD

2. Burleigh Heads, QLD

3. Five Dock, NSW

4. North Melbourne, VIC

5. Rozelle, NSW

6. Ellenbrook, WA

7. Parramatta, NSW

8. Crows Nest, NSW

9. Preston, VIC

10. South Melbourne, VIC

11. Yanchep, WA

12. Waterloo, NSW

13. Coffs Harbour, NSW

14. North Sydney, NSW

15. Pyrmont, NSW

16. Claremont, WA

17. Mermaid Beach, QLD

18. Miami, QLD

19. Concord, NSW

20. Fairfield, QLD

Originally published as Australia’s top 20 property hot spots in which to invest