If you’re thinking about investing in property, location can be everything. You want to make sure you’re buying in a location that will deliver you good results and align with your investment goals.
In this article, we share some places in each Australian state and territory that could present good opportunities for property investors.This is not an exhaustive list, but merely some suggestions to get you started.
Purchasing an investment property is a big decision that requires significant research. There isn’t a ‘one size fits all’ approach to investing in property, and that’s something to keep in mind when thinking about location.
For example, an investor wanting to rent to families will have different priorities than an investor looking to rent to young professionals. While buying in the inner city may make sense for the second investor, the first investor may want to consider more family-friendly suburbs.
Keep reading to find out which areas in each of the states and territories might boom in 2023.
Where to buy in Victoria in 2023
1. Glen Waverley
Located within the City of Monash local government area (LGA), Glen Waverley is a popular residential suburb in Melbourne that’s close in proximity to education and commerce hubs.
For those commuting into the Melbourne CBD, it has its own train station. Glen Waverley has seen an average of 8.8% in annual growth per year over the past decade, with its median house price being around $1.6 million.
Houses and apartments have both seen popularity recently, so the choice is up to investors.
2. North Melbourne
Want to invest in an inner-city apartment? North Melbourne could be a good option. A centrally located suburb can attract a range of prospective renters, such as international students and young professionals.
This means that there’s high demand, with people always wanting to enjoy the conveniences of living in Melbourne’s central suburbs.
3. Caroline Springs
On the western fringe of Melbourne, you’ll find Caroline Springs. It’s a newer suburb with strong sales activity and a median house price that sits below Melbourne’s median of $950,000.
It has great amenities and proximity to schools, shops and a train station for commuters. For investors wanting a more affordable Melbourne investment opportunity, consider Caroline Springs.
4. Mildura
Up in Victoria’s north-west, you’ll find Mildura. With a population of around 35,000, Mildura boosts a promising regional economy.
While house prices are low, value growth has soared by 55% over the past 5 years. Investors also have potential for good rental yields due to ultra-low vacancy rates.
5. Bairnsdale
East Gippsland centre Bairnsdale is one of the few towns still offering houses in the $300,000s.
Acting as the gateway to the stunning Gippsland Lakes, Bairnsdale can be attractive to those who relish water activities and outdoor action.
Low vacancy rates also indicate its popularity with renters and the potential for decent rental yields for investors.
Where to buy in NSW in 2023
1. Fairfield
Fairfield in Sydney’s west is attracting demand as both a suburb and LGA. It is bucking the trend in Sydney by continuing to offer healthy sales activity.
It’s also a more affordable suburb, with house prices below the Sydney median while maintaining low vacancy rates and a healthy rate of capital growth.
It’s a well-resourced suburban area that is popular with families due to having plenty of green space, public transport and schooling options.
2. Granville
Close to the Paramatta CBD and also in Sydney’s west, Granville is another suburb full of potential for investors. Over the past year and a half, sales activity has doubled and the suburb has a good long-term growth average.
It’s a great location for a range of potential renters, having strong train links to help commuters get to Parramatta and the city.
It also has several schools, nearby employment hubs and is close to the M4 Western Motorway.
3. Marrickville
Prefer to invest in the Inner West? Marrickville could be the place for you. One of Sydney’s largest suburbs, Marrickville has an increasing demand for units.
The suburb has become increasingly trendy and is home to a diverse range of people, with good links to the city, public transport, cafes, restaurants and bars. It’s an expensive suburb to buy a house in, but units average a median price of $840,000.
4. Dubbo
Dubbo is a great regional centre in NSW to consider due to its steady property market and diverse economy.
This means that there are jobs available and demand for housing is high, with a vacancy rate below 1%. So, you may be able to get a solid rental yield by investing in a Dubbo property.
5. Goulburn
Nestled between Sydney and Canberra, Goulburn is a quaint, historic regional city. It’s perfect for renters who want the charms of country living while enjoying the conveniences of city life – all in relatively close proximity to two major cities.
It has had positive long-term growth (approximately 8.2% per year over the past 10 years), indicating its popularity, while still having houses around the $500,000 dollar mark for investors wanting to save.
Where to buy in Queensland in 2023
1. Caboolture
Caboolture offers affordability and proximity to Brisbane and the Sunshine Coast. It offers all the basic amenities residents need while offering investors a low vacancy rate and a capital growth rate of around 8% a year on average over the past 10 years.
2. Annerley
It’s a good idea for property investors to keep track of changes to cities and future events. One such major event that Brisbane will be hosting are the 2032 Olympic Games.
While it’s 9 years away, there are suggestions that suburbs nearbig sporting venues could get a boost from the Games.
Annerley is close to the Gabba, and has good links to the University of Queensland, Pacific Motorway, commuter rail and a major hospital.
While houses are gradually becoming more expensive, investors looking to save could find apartments with a median price of around $460,000.
3. Edens Landing
For investors wanting to buy between Brisbane and Surfers Paradise, Edens Landing is a suburb to keep an eye on. It offers simplicity, amenities and transport links – all on a budget.
The median house price sits at around $500,000, with rents rising by 20% in recent years due to low vacancy rates.
4. Yeppoon
Yeppoon is a popular beachy town located close to the larger regional city of Rockhampton.
It’s a picturesque town that offers idyllic living at an affordable price. Its popularity has risen in recent years leading to high rental yields and low vacancy rates.
5. South Mackay
The central Queensland city of Mackay offers a strong economy, with diverse sectors of agriculture, tourism and natural resources.
Properties are generally priced in the $300,000s and low vacancy rates and high rental yields make it an interesting place for investors to keep tabs on.
Where to buy in the ACT in 2023
1. Dickson
Canberra’s popular inner-north suburb of Dickson could be a good investment opportunity for ACT investors. Dickson is centrally located and has close access to the Dickson Centre, offices and shops.
It's also close to trendy suburbs like Braddon, where residents will find plenty of bars, cafes and restaurants. Investors might like to favour units over houses in Dickson, with median unit prices being much lower than median house prices
2. Franklin
Like most Canberra suburbs, Franklin is still fairly pricey but it’s location on the light rail service has boosted growth and rental demand in the area.
Franklin features great amenities and is only a short drive or metro ride into Canberra Civic.
3. O’Connor
Located near fellow inner-north Canberra suburb Dickson, O’Connor is another suburb to consider for property investment in units.
The median unit price is around $570,000, versus a median house price of $1,655,000.
Where to buy in South Australia in 2023
1. Craigmore
Craigmore is a humble suburb in north-western Adelaide where homes still sell in the $300,000s. This means you could bag yourself a cheap rental property, while enjoying low vacancy rates and steady price growth.
As a suburb, Craigmore offers a good choice in schooling, green space, sports fields, as well as good transport connections to Adelaide’s CBD.
2. Kurralta Park
Right outside Adelaide’s CBD you’ll find Kurralta Park, a suburb offering surprising affordability despite its central location. It’s in great proximity to the airport, employment hubs and plenty of amenities.
From an investor’s perspective, Kurralta Park has seen buying activity soar over the past 18 months with prices climbing and rents rising.
3. Christies Beach
Scenic Christies Beach in the south of Adelaide offers stunning coastal living and median house prices of around $500,000.
It’s the ultimate lifestyle suburb, with close proximity to the beach, McLaren Vale wine district, rail and road links to the city and plenty of amenities.
4. Port Augusta
Over the past 2 years, sales activity has rapidly grown in Port Augusta but houses still remain affordable.
The burgeoning popularity of the city has driven a higher median rental yield of 6.6% and its economy is transforming in a way that could attract those interested in new energy technologies.
5. Mount Gambier
Mount Gambier is one of South Australia’s largest tourist hubs and the state’s largest regional city. It’s known for its beautiful scenery due to its crater lakes and volcanic landscapes.
Located between Melbourne and Adelaide, Mount Gambier is a place many property investors will want to bookmark on their search.
Where to buy in Western Australia in 2023
1. Baldivis
Coastal suburb Baldivis is surprisingly affordable, despite its proximity to a large Perth employment hub.
It has seen increased demand and sales activity, but house sales are still affordable in the $400,000s. Its popularity can be seen in its low vacancy rate of just 0.4%.
2. Wellard
Wellard may be the City of Kwinana’s most expensive suburb, but its median house price is still only pushing $400,000.
It’s an affordable investment opportunity with rental properties likely to attract families, due to the range of parks, schools, shopping centres and amenities in the area.
3. Brabham
Located in north-east Perth, Brabham offers a range of modern housing options with affordable house prices and low vacancy rates.
Houses typically sell for somewhere in the $400,000s and investment propertiesare likely to be rented quickly with vacancy rates sitting at around 0.5%.
Brabham offers plenty of green space, links to Perth’s CBD and a pleasant lifestyle for families in particular.
4. Meadow Springs
Just outside of Perth, Meadow Springs offers a fantastic lifestyle with an affordable price tag.
Investors are likely to bag a property for just over $400,000 and tenants will get to enjoy a range of schools, parks and walking trails nearby.
For those wanting to visit or commute into Perth, the Kwinana Freeway connects Meadow Springs to central Perth.
5. Geraldton
This small coastal city boasts a cosy population of around 40,600 people and a median house price in the early $300,000s.
Rental yields are just under 6% and low vacancy rates could make this you’re a great investment location.
Geraldton is a charming city, with significant waterfront appeal and amenities that are likely to draw plenty of potential tenants.
Where to buy in Tasmania in 2023
1. Howrah
Beautiful riverside Howrah is one of Hobart’s most charming suburbs. It boasts a stable, consistent property market and a median house price of over $800,000.
While Hobart notoriously has low vacancy rates, Howrah’s are even lower at 0.2%. The suburb has strong links to the city centre, great recreation areas and convenient shopping facilities.
2. Glenorchy
Glenorchy offers slightly more affordable living with a median house price of $600,000. Despite this, property values are continuing to grow – with a growth rate of almost 10% per year over the past 10 years.
The vacancy rate is incredibly low and the suburb is a great place to live, with access to one of Hobart’s largest shopping districts.
3. Devonport
Sitting on Tasmania’s north coast, Devonport is a small city with a fairly low median house price of $425,000. Vacancy rates are close to zero and rents continue to rise.
The city holds importance due to its port, which offers ferry connections between Melbourne and Tasmania.
Where to buy in the Northern Territory in 2023
1. Darwin City
Units in Darwin City are in demand from renters and with typical rental yields being above 6%, there’s plenty for investors to get excited about.
Darwin as a whole is an affordable city, with Darwin City’s median price sitting in the low $400,000s.
2. Rapid Creek
While most of Darwin is affordable, Rapid Creek is a pricier option for investors looking for premium investment opportunities in the NT.
The median house price is around $760,000 but investors on a budget could score an average unit for around $400,000. Rapid Creek enjoys a seaside lifestyle, offering plenty of schools and a vacancy rate below 1%.
3. Rosebery
Darwin’s Rosebery has seen sales activity double over the past 18 months. Houses sell in the mid $500,000s on average, vacancy rates sit at 0.4% and rental yield is a high 5.5%.
The suburb features plenty of amenities, including a medical centre, shopping centre and nearby schooling options.
Thinking about investing in your next property? Book an appointment with your local Aussie Broker to find out more about your investment home loan options.
