Australia’s investment hot spots have been revealed, with factors including infrastructure spending, average rental yields, population growth, house prices and lifestyle helping decide where the money is going.
Queensland took the top two spots in the top 20 with Woolloongabba first, thanks to its location near the new Olympic stadium, and the Gold Coast’s top lifestyle choice Burleigh Heads in second.
But while the sunshine state topped the list, NSW dominated the top 20 and Victoria claimed three spots in the top 10.
ME Bank commissioned the research from Ethos Urban, which showed new transport infrastructure is playing a major role in creating investment opportunities.
Top 20 places to invest in Australia
| Rank | Location | Rank | Location |
|---|---|---|---|
| 1 | Woolloongabba, Qld | 11 | Yanchep, WA |
| 2 | Burleigh Heads, Qld | 12 | Waterloo, NSW |
| 3 | Five Dock, NSW | 13 | Coffs Harbour, NSW |
| 4 | North Melbourne, Vic | 14 | North Sydney, NSW |
| 5 | Rozelle, NSW | 15 | Pyrmont, NSW |
| 6 | Ellenbrook WA | 16 | Claremont, WA |
| 7 | Parramatta, NSW | 17 | Mermaid Beach, Qld |
| 8 | Crows Nest, NSW | 18 | Miami, Qld |
| 9 | Preston, Vic | 19 | Concord, NSW |
| 10 | South Melbourne, Vic | 20 | Fairfield, Qld |
^Source: ME Bank, Ethos Urban
Ethos Urban consulting demographer Chris McNeil said transport, attractiveness for renters, the town centre and potential for new developments weighed heavily in the criteria.
“Woolloongabba, for example, is already serviced by two train stations and the new Cross City Rail Project will provide a 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.
“Add to this the exciting atmosphere in Logan Street, its rapid population growth and steady house price growth, and it really does offer a unique opportunity for those looking to invest in the residential property market.”
ME’s list of best places to invest captured all levels of investment, from apartment-focused buying in Five Dock, South Melbourne or Claremont to larger freestanding home opportunities in up-and-coming suburbs such as Yanchep and Preston.
Metro connections and price growth were the biggest drivers of investment in NSW while Victoria added on the eclectic atmosphere of places such as North Melbourne.
In Western Australia, the wine country and beaches made for good investment, particularly in Ellenbrook with its masterplan estate, and Yanchep gained traction from a rail extension.
While residential property prices are expected to increase 25 per cent for houses and 14 per cent this year, they are about to moderate.
The latest prediction for property prices shows houses will increase 6 per cent next year before dropping by 11 per cent while units will almost hold steady with an increase by 9 per cent and drop by 7 per cent in 2023.
This should improve the yields across the country with rent growth unable to keep up with prices, despite increasing up to 10 per cent in some cities.
