Buying a rental property is a huge investment, so it pays to do your research. For most investors, the aim is to maximise rental returns and minimise expenses. That said, your investment strategy will often dictate where you choose to buy.
Whether you’re looking to increase your rental yield or maximise your capital growth over the long term, it’s essential to have a good understanding of the property market. Let’s take a look at some of the best-performing suburbs in terms of growth across the states and territories.
Australia’s fastest growing suburbs
While there are a number of ways to approach property investment, many investors tailor their approach to focus on either capital growth or rental yield over time. You should consider your circumstances to see which one would suit you best if you were to become a property investor.
Many use capital growth as a sign of a solid investment, aiming to increase the long-term value of their property portfolio by buying and selling rather than holding over time.
Rental yield, meanwhile, is based on the average rental income a property brings in, measured across capital cities and regional areas. High-yield properties provide steady cash flow, which helps investors build wealth and expand their portfolios. With reliable rental income, they can also reduce investment risks and make their portfolios more sustainable.
Ultimately, whether you opt for a higher growth or higher yield suburb depends on your investment strategy.
Let’s take a look at some of the best-performing suburbs in terms of growth across Australia.
Queensland
Are you looking for the best areas to invest in Brisbane? As the second fastest-growing suburb in Queensland, Pallara - Willawong in Brisbane’s south could be a good pick for potential investors.
Top 3 fastest-growing suburbs* in QLD |
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Chambers Flat and Logan Reserve: 18% |
Greenbank and North Maclean: 13% |
*Source: Australian Bureau of Statistics: Regional population 2022-23 financial year - Queensland
New South Wales
When it comes to the best suburbs to invest in Sydney, Ultimo in the inner city has been ranked as one of the fastest-growing suburbs in the state.
Top 3 fastest-growing suburbs* in NSW |
|---|
Marsden Park and Shanes Park: 20% |
Ultimo: 19% |
*Source: Australian Bureau of Statistics: Regional population 2022-23 financial year - New South Wales
Australian Capital Territory
The ACT is home to several suburbs in and around the capital that cater to potential investors.
Top 3 fastest-growing suburbs* in ACT |
Strathnairn: 50% |
Taylor: 46% |
Denman Prospect: 20% |
Victoria
A number of Melbourne’s outer suburbs have experienced significant growth in recent years, making them an attractive option for potential investors.
Top 3 fastest-growing suburbs* in Victoria |
Fraser Rise and Plumpton: 26% |
Tarneit - North: 19% |
Clayton (North) and Notting Hill: 19% |
*Source: Australian Bureau of Statistics: Regional population 2022-23 financial year - Victoria
South Australia
From 2022-23, Munno Para West, Angle Vale and the city centre of Adelaide itself were some of the best areas in Adelaide to invest in terms of growth.
Top 3 fastest-growing suburbs* in SA |
Munno Para West and Angle Vale: 10% |
The city centre of Adelaide: 7.5% |
Virginia and Waterloo Corner: 7.5% |
*Source: Australian Bureau of Statistics: Regional population 2022-23 financial year - South Australia
Tasmania
Here are some of the top picks for investment suburbs around Tasmania.
Top 3 fastest-growing suburbs* in TAS |
Rokeby: 3.8% |
Austins Ferry and Granton: 2.9% |
Risdon Vale: 2.8% |
*Source: Australian Bureau of Statistics: Regional population 2022-23 financial year - Tasmania
Western Australia
When it comes to growth, there are several areas around Perth that should be considered by potential investors.
Top 3 fastest-growing suburbs* in WA |
Brabham and Henley Brook: 12% |
*Source: Australian Bureau of Statistics: Regional population 2022-23 financial year - Western Australia
Northern Territory
Investors can take advantage of favourable conditions in the top end in the following suburbs.
Top 3 fastest-growing suburbs* in NT |
Berrimah: 8.5% |
Palmerston - South: 7.2% |
Mount Johns: 3.1% |
*Source: Australian Bureau of Statistics: Regional population 2022-23 financial year - Northern Territory
Property investment FAQs
Keen to learn more about property investment before you take the plunge? Here are some common property investment FAQs.
What financing options are available to purchase an investment property?
If you’re looking to buy an investment property in Australia, chances are you’ve got a few different financing options available. Depending on your current situation and financial circumstances, you might be able to use:
Personal savings,
The equity you’ve built up in an existing property,
An inheritance or a financial gift, or
A trust.
For more information about funding an investment property, check out our blog on financing options for your investment property.
What are the benefits of owning an investment property?
Buying an investment property offers a range of benefits, including:
Enjoying tax benefits through negative gearing and claiming depreciation,
Harnessing the power of capital growth to make a profit when you sell your investment,
Earning a rental income by leasing your property, and
Taking advantage of a less volatile investment compared to other investments, like shares
As is the case with all investments, property also comes with its own set of risks that are worth being aware of.
Can I use super to buy an investment property?
While it’s possible to buy an investment property through a self-managed super fund (SMSF), it’s a highly complex and heavily-regulated process. The property itself must satisfy a number of rules, like meeting the 'sole purpose test.' Not to mention, it can’t be rented by a fund member or anyone related to a fund member.
With this in mind, it’s usually best to seek professional financial and legal advice before going ahead with an SMSF investment property purchase.
How much deposit do you need for an investment property?
It’s an old rule-of-thumb that property purchases in Australia require a 20% deposit. However, some lenders will accept a deposit as low as 5% for an investment property. Keep in mind that you could be up for lenders mortgage insurance (LMI) with a deposit of less than 20% though. Reach out to your local Aussie Broker to chat more about your options for an investment loan.
At Aussie, we’re here to make your investment dreams a reality, which is why we’ve created our very own suburbs reporting tool. Use our tool to help you narrow down the best place to buy investment property and chat with an Aussie Broker to help you figure out your financing options.
