Demand for housing is at an all-time high, and a quick look at trends shows that pricing is too. But if you know where to look, you can follow the smart money and pick up a hidden gem. Here’s where the pros are looking.
Should you look for Capital Gains or Positive Gearing?
First things first: decide how you want to invest.
Most investors decide between two options: investing for shorter-term capital gains, or to get a property that can turn into a positively-geared income stream.
Positive gearing is when the money you make from renting out a property covers the costs of owning it. Costs like the mortgage, maintenance, insurance and more. It’s typically a little more difficult to get yourself into a positively geared position, especially as property prices hit record highs in NSW and the ACT.
It all comes down to your own circumstances, what you can sustain and how you want to invest.
Sydney: smart picks for 2025
Sydney’s property market remains tough, but some suburbs stand out for their affordability, growth potential, and lifestyle benefits.
Parramatta and surrounds: As Sydney’s second CBD, Parramatta continues to thrive. The Metro West rail project, expected to complete by 2030, will dramatically improve connectivity. Parramatta offers a mix of apartments and family homes, appealing to young professionals and growing families alike. Prices are lower than inner-city Sydney, but infrastructure is pushing values upward.
Blacktown and surrounds: Blacktown is one of Sydney’s most affordable options for first-time investors, with median house prices far below the city average. Its train line, schools, and proximity to employment hubs make it an attractive option for renters and buyers alike. Blacktown is primed for capital growth as infrastructure projects, like the Western Sydney Airport, transform the region.
Liverpool and surrounds: A cultural melting pot with a thriving food scene and increasing employment opportunities, Liverpool offers homes and units at prices significantly lower than inner Sydney. Its new health precinct and education hubs ensure strong rental demand, making it a great choice for positive gearing.
Oran Park: Located in Sydney's southwest, Oran Park is undergoing significant development, including the planned Tulich Lifestyle Village—a $167 million "vertical village" for seniors. This project aims to enhance housing diversity and vibrancy in the area, indicating strong future growth potential.
Holsworthy: Situated in the city's southwest, Holsworthy is set for transformation with a bold vision for a "10-minute city." Plans include the construction of 298 apartments across three towers, along with commercial and leisure facilities. This development aligns with the Greater Sydney Region Plan, aiming to create dynamic urban centres.
Alexandria: Once an industrial hub, Alexandria is experiencing significant transformation with major developments underway. Projects include a $75 million five-storey mixed-use commercial and warehouse development and a $72 million 10-storey affordable housing and retail project. These initiatives are part of a broader push to revitalise the area into a bustling commercial and retail precinct.
Sydney Olympic Park: This area is set to lose 5,000 parking spots as part of a state government masterplan aimed at transforming it into a bustling residential hub by 2050. The plan includes adding 13,000 new homes, shops, and restaurants for up to 30,000 residents, indicating a significant shift towards urban living.
Birling Estate: Located near the new Western Sydney Airport, Birling Estate is part of a larger precinct projected to house over 20,000 people. NBN Co has secured a contract to install full fibre internet to this 2,100-home development, enhancing its appeal for future residents and investors.
Canberra: smart picks for 2025
The ACT is known for its stability—strong government employment keeps property demand consistent—but certain suburbs are primed for growth in 2025.
Molonglo Valley: As one of Canberra's newest districts, Molonglo Valley is experiencing rapid development with a focus on sustainable living. The suburb of Denman Prospect, in particular, offers modern amenities, schools, and parks, attracting young families and professionals. The ongoing infrastructure projects and planned community facilities are expected to drive property value appreciation in the coming years.
Throsby: Located in the Gungahlin district, Throsby is a relatively new suburb that has quickly gained popularity due to its proximity to the city centre and natural reserves. The suburb offers a range of housing options, including contemporary townhouses and family homes. The planned development of schools and shopping centres is set to enhance its appeal further, making it a suburb to watch for potential growth.
Coombs: Situated in the Molonglo Valley, Coombs is designed with a focus on community living, featuring numerous parks, walking trails, and close proximity to the National Arboretum. The suburb offers a mix of housing options, including apartments and detached homes, catering to diverse demographics. The ongoing development of local amenities and its strategic location between the city centre and Belconnen make Coombs a promising area for investment.
Lawson: Located near the University of Canberra and the Belconnen Town Centre, Lawson offers a mix of modern apartments and townhouses. Its strategic location makes it attractive to students and professionals, ensuring strong rental demand. The suburb's development plan includes green spaces and community facilities, enhancing its livability and investment potential.
Taylor: As one of Gungahlin's newest suburbs, Taylor is designed to provide a diverse range of housing options, including affordable homes for first-time buyers. The suburb features planned schools, parks, and shopping facilities, aiming to create a self-sufficient community. Its affordability and planned infrastructure make Taylor an attractive option for investors seeking growth potential.
Regional NSW: where you can score a bargain
Regional NSW is no longer just a backup plan for those priced out of Sydney—it’s a serious contender for smart investment. Lifestyle changes and remote work flexibility have driven demand in many regional hubs, where $1 million buys far more than Sydney.
Gunnedah: Located in the North West Slopes region, Gunnedah has experienced a significant median house price increase of 12.3% over the past year, reaching $465,000. This growth is attributed to its strong agricultural base and expanding mining sector, providing a stable economic foundation.
Broken Hill: Situated in the Far West, Broken Hill's median house price has risen by 10.6% to $193,500. Known for its rich mining history and vibrant arts scene, the town offers affordable property options with potential for capital growth.
Kiama: In the Illawarra region, Kiama's median house price has increased by 10.3% to $1,500,000. Its coastal charm, proximity to Sydney, and strong tourism industry make it a desirable location for both residents and investors.
Hilltops: Located in the South West Slopes, the Hilltops region has seen a 7.3% rise in median house prices, now at $440,000. The area's agricultural productivity and emerging wine industry contribute to its economic stability and growth prospects.
Cootamundra-Gundagai: In the Riverina region, this area has experienced a 7.2% increase in median house prices, reaching $410,000. Its strategic location along major transport routes and strong community infrastructure make it an appealing choice for investors.
Why these areas?
Market trends are going to be what influences you most when it comes to picking an area to invest in. You can use our Aussie Homes Property tool to get intelligence on where house and unit prices may be falling back into bargain territory, for example.
But for many, it’s about more than money. Investing means you’re buying something cheap that people will want to pay more for later. So you need to consider lifestyle factors around your purchase, too.
You can score by looking at cheaper “alternative” suburbs that are close to premium suburbs and still have similar lifestyle benefits. Or you can track where infrastructure is set to be built in coming years to see where property might increase.
And finally, there are the lifestyle factors like proximity to the coast, quality of life and how affordable it is to live there.
Do you really need a 20% deposit?
A quick chat with our mortgage brokers reveals that it’s not always necessary to invest in a suburb as soon as you have a 20% deposit. You may be able to do it sooner, based on your circumstances.
For first-home buyers, for example, low-deposit loans and government schemes like the First Home Guarantee can help you enter the market sooner. A chat with us is a great way to figure out how you can get on the ladder by rentvesting, for example.