Updated in August 2025
Australia’s property market continues to be an attractive choice for investors, driven by factors like steady population growth, substantial infrastructure investments, and resilient economic performance. If you’re considering buying property, you’re likely asking important questions like: Is buying property a good investment in Australia? Which state is best for investing in property in Australia?
This comprehensive guide will explore the best places to buy an investment property in Australia, focusing specifically on Queensland, Victoria, and New South Wales. These three states are showing significant promise for property investors in 2025.
A quality Investment Property Mortgage Broker doesn’t just help you buy — they set the stage for your property wealth to scale efficiently.
Is Buying Property a Good Investment in Australia?
Property is still an important part of how many Australians plan for their future wealth. For some, it’s seen as a potential hedge against inflation, a pathway to long-term capital growth, or a source of rental income. But as with any asset class, whether it’s a suitable option depends heavily on your personal goals, financial position, and risk tolerance.
Recent figures from CoreLogic’s 2025 Home Value Index point to modest national growth, despite interest rate fluctuations and broader economic uncertainty. While housing values have softened in certain areas, others are showing renewed signs of momentum, particularly suburbs supported by infrastructure or growing rental demand.
Historically, property in Australia has offered a blend of:
- Capital growth potential, particularly in fast-growing corridors and infrastructure-backed locations
- Rental income, supported by ultra-low vacancy rates in many cities and regional centres
- Access to leverage, as lenders may offer higher borrowing capacity for property compared to other investment types
Still, performance varies significantly between regions, and some markets are entering a correction phase after years of rapid growth. Investors are encouraged to consider not just headline growth, but also practical factors such as:
- Holding and maintenance costs
- Vacancy risk and tenant demand
- Interest rate movements and borrowing conditions
- Tax treatment and implications for long-term ownership
While property could provide long-term benefits for some, outcomes are never guaranteed. Trends may point to potential, but every investment carries risk, and every buyer’s circumstances are different.
As we explore each state, we’ll focus on suburbs that current data suggests may offer potential through a combination of affordability, growth drivers, and rental performance. Let’s start with Queensland.
Queensland (QLD): Sunshine, Growth, and Affordability
Queensland continues to stand out as one of the best places to buy an investment property in Australia, offering a mix of affordability, infrastructure momentum, and population growth. Major projects tied to the 2032 Olympics, including transport expansions and urban renewal precincts, are reshaping key corridors. From the capital’s inner suburbs to coastal growth zones and rising regional hubs, Queensland presents multiple entry points, whether you’re prioritising rental yield, long-term potential or newer dwellings.
📍 Brisbane: Economic Hub with Growth-Backed Suburbs
Brisbane remains one of the best places to buy investment property in Australia in 2025, with strong rental demand and infrastructure momentum. With low vacancy rates, surging interstate migration, and projects like the Cross River Rail and Brisbane Metro driving long-term accessibility, select suburbs across the inner and middle rings are continuing to show upward potential.
Brisbane’s preparation for the 2032 Olympic Games continues to shape property demand, particularly in inner and middle-ring suburbs. Key projects are already well underway:
- Cross River Rail: Scheduled for completion in 2026, this $5.4 billion project will transform connectivity across Brisbane, adding four new underground stations (Albert Street, Roma Street, Boggo Road, Woolloongabba) and reducing travel times to the CBD. Suburbs directly serviced — such as Woolloongabba and Dutton Park — are already showing above-average rental demand from students, health workers, and young professionals.
- Gabba Stadium Redevelopment: As the centerpiece of the 2032 Games, the Gabba is undergoing a major rebuild with surrounding precinct upgrades. This urban renewal is expected to boost demand for both owner-occupier and investor stock in Woolloongabba, Kangaroo Point, and East Brisbane, creating a ripple effect across Brisbane’s inner south.
For investors, these projects signal not just a short-term construction boom but also long-term tenant demand, especially in unit markets catering to young professionals and health precinct workers.
Chermside (4032)
Chermside is a consistently high-demand inner-north suburb known for its proximity to Westfield Chermside, The Prince Charles Hospital, and the Northern Busway. Its combination of healthcare infrastructure, shopping amenities, and public transport continues to attract stable tenants.
- Median House Price: $1,100,000
- Median Unit Price: $631,500
- Rental Yield: 2.7% (houses), 4.8% (units)
- 12-Month Growth: +22.2% (houses), +24.6% (units)
Chermside could appeal to investors looking for sustained rental demand and accessible unit pricing within 10km of the CBD.
Acacia Ridge (4110)
In Brisbane’s south-west, Acacia Ridge is gaining momentum. With larger lot sizes, links to logistics employment, and more accessible entry points, it’s among the best QLD suburbs to invest in for $500k or less (for units), particularly for yield-focused investors.
- Median House Price: $790,000
- Median Unit Price: $555,000
- Rental Yield: 3.6% (houses), 4.2% (units)
- 12-Month Growth: +14.1% (houses), +22.0% (units)
Affordable and functional, Acacia Ridge might suit buyers prioritising positive cash flow and strong trades-based rental demand.
Woolloongabba (4102)
Woolloongabba is part of Brisbane’s Olympic-aligned precincts, with the Cross River Rail, hospital upgrades, and urban renewal projects reshaping the area. Health workers and students continue to fuel local demand, particularly in the unit market.
- Median House Price: $1,350,000
- Median Unit Price: $670,000
- Rental Yield: 2.8% (houses), 5.5% (units)
- 12-Month Growth: +8.2% (houses), +13.6% (units)
Woolloongabba could be one of the best capital growth suburbs Australia may see over the longer term, especially for investors targeting infrastructure-backed inner-city precincts.
Hamilton (4007)
Hamilton has long been considered one of Brisbane’s most prestigious riverfront suburbs. In 2025, the suburb’s housing market has shown some softening, but the unit segment is seeing renewed interest, particularly among renters seeking lifestyle proximity to the city and airport.
- Median House Price: $2,150,000
- Median Unit Price: $643,500
- Rental Yield: 3.0% (houses), 5.2% (units)
- 12-Month Growth: -8.7% (houses), +17.0% (units)
While high-end homes may be experiencing a price correction, units could still appeal to investors focused on premium locations with stronger-than-average yields.
Logan Central (4114)
Logan Central sits between Brisbane and the Gold Coast, offering lower home prices, strong rental returns, and easy access to major roads. It continues to perform strongly in the unit segment.
- Median House Price: $657,000
- Median Unit Price: $384,000
- Rental Yield: 4.3% (houses), 5.7% (units)
- 12-Month Growth: +19.5% (houses), +32.9% (units)
Logan Central is often listed among the QLD suburbs set to boom in 2025, especially for investors chasing yield-driven strategies with sub-$400k unit options.
Springfield Lakes (4300)
As part of the Greater Springfield master-planned region, Springfield Lakes is a self-contained urban hub with major investments in rail, education, and healthcare. It continues to attract young families and long-term renters.
- Median House Price: $822,000
- Median Unit Price: $615,000
- Rental Yield: 4.2% (houses), 5.5% (units)
- 12-Month Growth: +8.9% (houses), +25.5% (units)
Among the best suburbs to invest in South East Queensland, Springfield Lakes is often cited for its infrastructure pipeline, population growth, and evolving lifestyle offering.
📍 Gold Coast: Lifestyle & Population Growth Magnet
With vacancy rates in many coastal suburbs below 1.3%, the Gold Coast continues to attract investors targeting lifestyle-backed demand. Supported by the SEQ City Deal, inland and coastal zones are seeing new housing, transport upgrades, and high rental pressure.
Southport (4215)
Southport is considered the central business district of the Gold Coast and continues to attract steady demand from both tenants and investors. Its proximity to Griffith University, the Gold Coast Health and Knowledge Precinct, and the G:Link light rail supports both residential activity and economic development.
- Median House Price: $1,080,000
- Median Unit Price: $680,500
- Rental Yield: 4.1% (houses), 5.3% (units)
- 12-Month Growth: +13.7% (houses), +13.4% (units)
With zoning flexibility and consistent infrastructure upgrades, Southport could remain a high-demand suburb for investors seeking access to mixed-use amenities and diverse tenant pools, including students and medical professionals.
Coomera (4209)
One of the fastest-growing family suburbs on the Gold Coast, Coomera is supported by Westfield, schools, and train infrastructure. The area is frequently named among the best suburbs to invest in Queensland under construction, with more homes and commercial precincts on the way.
- Median House Price: $875,000
- Median Unit Price: $657,500
- Rental Yield: 4.6% (houses), 5.0% (units)
- 12-Month Growth: +4.8% (houses), +17.9% (units)
Coomera could suit buyers prioritising newer dwellings and tenant stability in a family-friendly corridor.
📍 Townsville: Affordable Entry Points and Regional Strength
Townsville is emerging as one of the best regional areas to buy investment property, supported by employment in health, education, and defence. It offers some of the highest rental yields across Queensland and median house prices well below capital city levels.
Kirwan (4817)
Kirwan is one of Townsville’s most established family suburbs, known for its schools, parklands, and shopping centres. The area has attracted increased interest from renters seeking a suburban lifestyle close to essential services.
- Median House Price: $540,000
- Median Unit Price: $356,500
- Rental Yield: 5.3% (houses), 6.5% (units)
- 12-Month Growth: +27.7% (houses), +25.1% (units)
Recent data shows substantial price growth alongside consistently strong yields, making Kirwan a potential candidate for yield-focused investors prioritising long-term tenant stability.
Annandale (4814)
With direct access to James Cook University, the Townsville Hospital, and military facilities, Annandale tends to attract professionals and defence-related tenants. Its mix of low-density housing and local amenity also supports owner-occupier demand.
- Median House Price: $651,814
- Rental Yield: 5.1% (houses)
- 12-Month Growth: +23.9% (houses)
Annandale could suit those seeking a more established suburb with lower vacancy risks, particularly due to its proximity to large public-sector employers.
Bushland Beach (4818)
Located north of Townsville’s CBD, Bushland Beach offers a coastal lifestyle in a more relaxed, residential setting. The suburb features newer housing estates and appeals to a mix of families, remote workers, and retirees.
- Median House Price: $621,250
- Rental Yield: 5.2% (houses)
- 12-Month Growth: +19.8% (houses)
While not as urbanised as Townsville’s inner suburbs, Bushland Beach’s ongoing development and lifestyle appeal may continue to support steady growth, especially among regional lifestyle migrants and sea-changers.
Victoria (VIC): Diverse Opportunities in Australia’s Cultural Heartland
Victoria continues to offer a wide range of investment opportunities in 2025, from urban growth corridors in Greater Melbourne to emerging lifestyle regions with regional commuter access. While some inner-city pockets remain subdued, outer-suburban and regional locations are showing renewed activity driven by affordability, infrastructure delivery, and shifting buyer preferences. For those researching the best places to buy an investment property in Australia, Victoria presents a mix of price points and property types suited to a broad range of strategies.
Victoria: Major Transport Projects Reshaping Investment
Victoria’s property market continues to be shaped by large-scale transport infrastructure, with two standout projects influencing investor interest:
- Melbourne Airport Rail (due 2029): This long-awaited rail link will connect Melbourne Airport to the CBD in under 30 minutes via Sunshine. While still several years from completion, property around Sunshine, Keilor East, and Airport West is already gaining attention from investors expecting improved connectivity and demand from airport workers.
- Suburban Rail Loop (SRL): Construction on the SRL East (Cheltenham to Box Hill) began in 2022, with completion expected by 2035. This orbital rail line will link middle-ring suburbs without requiring travel through the CBD, reshaping demand in Box Hill, Clayton, Monash, and Burwood. These areas are likely to see growth in both student housing and family rentals due to improved accessibility and proximity to education/health precincts.
Together, these projects highlight why Melbourne’s middle-ring and western growth corridors remain high on investors’ watchlists — infrastructure pipelines are often a leading indicator of where future property value uplift will occur.
📍 Melbourne: Affordable Growth Corridors and Resilient Middle-Ring Suburbs
Despite a modest recovery, Melbourne remains one of the most researched capitals for investors in 2025. According to CoreLogic, housing values have risen slightly (+0.4% MoM as of early 2025), with performance strongest in affordable and infrastructure-backed locations. Many buyers are turning to the best suburbs to invest in Melbourne under $500k to $800k, especially across the western and northern belts.
Melton (3337)
Situated 40km west of the CBD, Melton remains one of the best suburbs to invest in Melbourne under $500k. With multiple town centre projects underway, upgraded train services, and affordable housing options, the suburb has become a go-to area for both owner-occupiers and entry-level investors.
- Median House Price: $475,000
- Median Unit Price: $380,000
- Rental Yield: 4.4% (houses), 5.3% (units)
- 12-Month Growth: +0.2% (houses), +2.2% (units)
Melton’s affordability and infrastructure-led planning suggest it could offer long-term capital growth potential, especially for buyers priced out of Melbourne’s middle-ring.
Wyndham Vale (3024)
Positioned in the outer west, Wyndham Vale is often mentioned among the best suburbs to invest in Melbourne under $600k, due to its rail access, schooling zones, and links to Werribee’s employment centres.
- Median House Price: $570,000
- Median Unit Price: $450,000
- Rental Yield: 4.2% (houses), 4.9% (units)
- 12-Month Growth: -2.6% (houses), -6.2% (units)
While price movements have softened, the suburb’s consistent tenant demand may continue to support investors focused on steady cash flow and family-oriented infrastructure.
Sunbury (3429)
Located approximately 40km north-west of the CBD, Sunbury blends historic charm with new estates and rail connectivity. Its proximity to Melbourne Airport and emerging commercial nodes adds to its strategic value.
- Median House Price: $672,000
- Median Unit Price: $490,000
- Rental Yield: 4.2% (houses), 4.7% (units)
- 12-Month Growth: +1.6% (houses), +0.6% (units)
Sunbury may suit investors who value suburban scale, family-friendly infrastructure, and the potential for long-term growth as the city expands outward.
Tarneit (3029)
Tarneit is widely considered one of the best suburbs to invest in Melbourne under $700k, thanks to its booming population, new schools, and upgraded train services. It’s particularly popular with young families and migrant communities.
- Median House Price: $650,000
- Median Unit Price: $460,000
- Rental Yield: 4.4% (houses), 5.4% (units)
- 12-Month Growth: +0.0% (houses), +2.2% (units)
The suburb’s ongoing development pipeline and family-friendly infrastructure may support continued rental demand and long-term value.
Frankston North (3200)
Bordering beachside suburbs, Frankston North has become one of the best suburbs to invest in Melbourne under $800k for budget-conscious investors. Its access to public transport and nearby health precincts has bolstered both rental demand and buyer interest.
- Median House Price: $595,000
- Rental Yield: 4.3% (houses)
- 12-Month Growth: +3.5% (houses)
This suburb could be suited to those seeking renovation potential or dual-income setups in an increasingly competitive outer-bayside market.
Craigieburn (3064)
Craigieburn continues to rank among the best capital growth suburbs in Australia may watch in the middle-ring category, supported by multicultural demand, train links, and expanding retail. It offers a mix of new builds and established stock catering to families and young professionals.
- Median House Price: $650,000
- Median Unit Price: $410,500
- Rental Yield: 4.5% (houses), 5.6% (units)
- 12-Month Growth: +1.6% (houses), +0.1% (units)
Craigieburn’s diverse tenant base, infrastructure expansion, and flexibility of dwelling types could position it as a long-term performer within Melbourne’s north.
If you’re asking what suburbs might boom in Melbourne in 2025, greenfield areas like Clyde North and Mickleham continue to see developer activity, planned retail centres and school construction, all of which may contribute to future capital growth.
📍Macedon Ranges (3440+): Regional Charm with City Proximity
Located 45–90 minutes from Melbourne CBD, the Macedon Ranges region has emerged as a lifestyle destination for professionals, retirees, and remote workers. Towns like Gisborne, Woodend, and Kyneton offer leafy streetscapes, heritage charm, and commuter access via V/Line rail.
- Median House Price (Gisborne): $962,500
- Median House Price (Woodend): $955,000
- Median House Price (Kyneton): $842,500
- Rental Yield (avg): 3.4%–3.8% (houses)
- 12-Month Growth: -5.6% (Gisborne), -8.2% (Woodend), +5.3% (Kyneton)
While some towns like Gisborne and Woodend have experienced recent price softening, the region overall continues to draw interest from lifestyle buyers. Kyneton’s recent growth and the area’s limited housing supply could support long-term value for niche investors focused on land banking or boutique accommodation strategies.
New South Wales (NSW): Thriving Cities and Expanding Regional Appeal
New South Wales remains one of Australia’s most in-demand property markets, anchored by Sydney’s global status and supported by high levels of infrastructure spending, employment diversity, and strong rental demand. While inner-city affordability remains a challenge, new opportunities are emerging in Western Sydney and select regional hubs as population pressures shift demand toward outer growth corridors and lifestyle-rich coastal towns.
📍 Sydney: Major Infrastructure and Evolving Affordability Corridors
Sydney’s property landscape continues to evolve in 2025, shaped by major infrastructure projects such as the Western Sydney Airport, Sydney Metro West, and the renewal of high-density precincts. Vacancy rates across Greater Sydney have tightened to around 1.5%, with investor interest increasingly focusing on well-connected metro hubs and future-facing suburbs.
Sydney: Western Sydney Airport Boosting Property Corridors
The Western Sydney International (Nancy-Bird Walton) Airport, on track for its 2026 opening, is redefining investment prospects across Western Sydney. Surrounding suburbs are already experiencing strong buyer and rental interest due to:
- Infrastructure Upgrades: The new airport is linked to the Sydney Metro – Western Sydney Airport line, bringing new stations at St Marys, Orchard Hills, and the Aerotropolis Core. This line is expected to be operational by 2026, dramatically improving connectivity.
- Employment Growth: The airport and surrounding Aerotropolis precinct are projected to create over 200,000 jobs over the coming decades, particularly in aviation, logistics, healthcare, and education.
- Property Hotspots: Suburbs like Liverpool, Penrith, and Bringelly are emerging as key beneficiaries, with investors targeting both affordable housing and new unit developments aimed at workers.
For long-term investors, the airport represents a classic case of infrastructure-led growth, likely to underpin both capital appreciation and rental stability.
Parramatta (2150)
Often referred to as Sydney’s “Second CBD,” Parramatta is a commercial and residential powerhouse supported by government investment and mass transit upgrades, including the Sydney Metro West.
- Median House Price: $1,760,000
- Median Unit Price: $620,000
- Rental Yield: 2.2% (houses), 5.6% (units)
- 12-Month Growth: +17.3% (houses), -1.6% (units)
While unit prices have dipped slightly, the suburb’s long-term prospects remain tied to its commercial precincts, education hubs and infrastructure pipeline. These factors could support sustained rental demand.
Liverpool (2170)
Located within the Western Sydney Airport growth corridor, Liverpool is undergoing rapid transformation driven by public infrastructure, healthcare employment, and university expansions.
- Median House Price: $1,088,500
- Median Unit Price: $495,000
- Rental Yield: 3.2% (houses), 5.6% (units)
- 12-Month Growth: +11.3% (houses), +3.1% (units)
Liverpool could suit those seeking the best suburb to invest in Western Sydney, particularly for unit dwellings under $600k with yield potential and major employment links.
Penrith (2750)
Penrith is near the Blue Mountains and offers both quiet suburban living and easy travel into the city. Ongoing transport upgrades linked to the new airport are enhancing its regional importance.
- Median House Price: $927,500
- Median Unit Price: $550,000
- Rental Yield: 3.2% (houses), 4.8% (units)
- 12-Month Growth: +4.2% (houses), +2.8% (units)
Penrith may appeal to buyers considering where to buy a house in Sydney under $1 million, with potential rental return and growth supported by infrastructure and family demand.
Blacktown (2148)
As one of Western Sydney’s most multicultural and development-ready suburbs, Blacktown continues to benefit from new housing projects, station upgrades, and access to the T1 and T5 train lines.
- Median House Price: $1,030,000
- Median Unit Price: $510,000
- Rental Yield: 2.9% (houses), 5.5% (units)
- 12-Month Growth: +6.7% (houses), -1.7% (units)
Despite a slight drop in unit prices, Blacktown’s strong rental yields and zoning for higher-density development suggest ongoing potential for yield-oriented investors.
Pyrmont (2009)
Bordering Sydney CBD, Pyrmont is a tightly held suburb known for its walkability, waterfront views, and proximity to the Tech Central innovation precinct.
- Median Unit Price: $1,180,000
- Rental Yield: 4.2% (units)
- 12-Month Growth: +9.3% (units)
While prices remain elevated, Pyrmont’s scarcity of new stock and strong tenant demand could make it attractive for long-term investors focused on prestige-location assets.
Surry Hills (2010)
Surry Hills, just south of the CBD, is known for its cafés, creative spaces and short-term rentals. It’s a favourite with city workers and visitors. However, recent data show a modest price correction across both housing types.
- Median House Price: $2,047,500
- Median Unit Price: $906,500
- Rental Yield: 2.9% (houses), 4.4% (units)
- 12-Month Growth: -6.9% (houses), -2.0% (units)
Despite recent softness, Surry Hills may continue to appeal to investors focused on short-stay returns and strong tenant turnover in inner-urban settings.
Campbelltown (2560)
Located in Sydney’s south-west, Campbelltown offers affordable freestanding homes, a major public hospital, and proximity to Western Sydney University. It’s increasingly on the radar for investors seeking rental demand in family-oriented areas.
- Median House Price: $900,000
- Median Unit Price: $530,000
- Rental Yield: 3.4% (houses), 5.1% (units)
- 12-Month Growth: +7.1% (houses), +6.0% (units)
Campbelltown’s combination of price accessibility and dual-income potential (e.g. granny flats) may appeal to buyers focused on steady cash flow.
📍 Coffs Harbour: A Coastal Gem
Situated on the Mid-North Coast, Coffs Harbour offers a blend of beachside lifestyle, growing education and health services, and improved transport infrastructure. Its appeal continues to grow among remote workers, downsizers, and long-term tenants migrating from metropolitan areas.
- Median House Price: $797,500
- Median Unit Price: $570,000
- Rental Yield: 4.4% (houses), 5.0% (units)
- 12-Month Growth: +5.6% (houses), +5.2% (units)
Coffs Harbour could offer diversified appeal for investors open to permanent rentals or short-stay strategies, particularly given its low vacancy rate and consistent regional population growth.
Key Investment Criteria for Australian Property
No matter your targeted region, successful property investors share common strategies. Consider these essential criteria when deciding where to buy investment property in Australia in 2025:
1. Strong Infrastructure
Invest where government and private spending on transport, education, and healthcare is robust. Suburbs benefiting from upcoming rail links, hospital expansions, or major precinct redevelopments often show sustained interest from both buyers and renters.
2. Economic Growth
Prioritise suburbs with diverse employment sectors and resilient local economies. Access to jobs across multiple industries, not just one dominant employer, can help stabilise long-term property values.
3. Population Growth
Suburbs experiencing increasing population growth will typically see heightened demand and price appreciation. Many investors track ABS migration data or local council forecasts to identify high-growth corridors early.
4. Low Vacancy Rates
Areas with low rental vacancies indicate high tenant demand, ensuring consistent rental income. Vacancy rates below 2% are often viewed as a healthy benchmark in metro and regional markets alike.
5. Entry Price and Long-Term Affordability
Identify suburbs within your financial reach, aligning investment choices with long-term financial goals and risk appetite. Balancing upfront cost with rental yield and future growth potential remains a key consideration in 2025’s lending environment.
All data referenced in this guide reflects the most recent publicly available insights from sources including CoreLogic, SQM Research, realestate.com.au, and ABS as of early 2025. While trends can provide useful context, every property market is different. So is every investor’s situation.
It’s always worth seeking mortgage broker guidance to help assess how these suburbs align with your personal goals, borrowing position, and risk profile.
Western Australia (WA): Perth Leads the Nation in Growth
Perth has emerged as the strongest-performing capital city in early 2025, with property prices rising faster than any other market. Key factors include:
- Affordability Advantage: Compared to Sydney and Melbourne, Perth’s median house price remains accessible, drawing both local and interstate investors.
- Mining & Resources Sector: Employment tied to resources and energy continues to underpin economic resilience and rental demand.
- Rental Yields: Vacancy rates are among the lowest in the country (hovering near 0.7%), with yields of 4–6% in many suburbs.
Hotspot Suburbs:
- Baldivis (6171): Popular with families, offering affordable house prices under $600k and strong rental demand.
- Joondalup (6027): A northern hub with strong healthcare and education precincts, plus commuter rail access.
- Victoria Park (6100): Inner-city lifestyle suburb benefiting from proximity to the CBD and Curtin University.
For investors, Perth presents a mix of cash flow and capital growth potential, especially in suburbs near infrastructure corridors and employment hubs.
South Australia (SA): Adelaide’s High Yields & Tight Vacancies
Adelaide continues to shine in 2025 as a market offering strong rental returns and relative affordability. While capital growth has moderated, yields and low vacancy rates remain highly attractive.
- Affordability: Median house prices are well below Sydney and Melbourne, with opportunities under $700k in family-friendly suburbs.
- Rental Yields: Investors are seeing yields of 4.5–6%, supported by a vacancy rate under 1%.
- Economic Drivers: Defence, healthcare, and education sectors are driving steady employment growth.
Hotspot Suburbs:
- Salisbury (5108): Affordable outer-northern suburb, with houses under $600k and strong demand from trades and logistics workers.
- Mawson Lakes (5095): Popular with students and professionals, supported by rail access and proximity to UniSA and Technology Park.
- Glenelg (5045): Lifestyle suburb with tourism appeal and premium rental demand, particularly for apartments.
Adelaide’s combination of high yields, affordability, and low vacancy makes it one of the most attractive cities for investors looking for stable cash flow.
Emerging Themes in 2025 Property Investing
Build-to-Rent Projects
Sydney and Melbourne are seeing rapid growth in build-to-rent (BTR) developments, with institutional investors constructing large-scale rental complexes. While this increases supply in some high-density precincts, it also reflects growing rental demand. For individual investors, BTR may influence inner-city rental competition but highlights the strength of Australia’s long-term rental market.
Regional Lifestyle Migration
The remote work trend remains strong in 2025, with many Australians continuing to migrate toward coastal and lifestyle-rich regional towns. Areas such as the Sunshine Coast (QLD), Coffs Harbour (NSW), and Macedon Ranges (VIC) are benefiting from demand driven by hybrid workers, retirees, and families seeking lifestyle without losing city access. Investors can capitalise on low vacancy rates and steady rental demand in these regions.
Sustainability and Energy Efficiency
Energy-efficient homes are becoming a major consideration for both buyers and renters, with demand rising for properties featuring solar panels, battery storage, and high energy ratings. Government incentives and rising energy costs are pushing more Australians toward sustainable housing. For investors, sustainable features can mean higher rental appeal, reduced outgoings, and long-term value uplift as regulations tighten.
Case Study: A Teacher Investing in Craigieburn
Profile: James, a high school teacher in Melbourne’s northern suburbs, wants to begin building long-term wealth through property investment. He’s attracted to Craigieburn (VIC), a suburb known for its strong rental yields and family demand.
- Median House Price (2025): $650,000
- Deposit: 10% ($65,000), supported through a teacher home loan that offers flexible borrowing conditions.
- Loan-to-Value Ratio (LVR): 90%
- Estimated Rental Yield: 4.5% (houses)
- Projected Annual Rental Income: ~$29,250
- Estimated Loan Repayments (at 6% interest, P&I): ~$42,000 annually
Outcome:
While rental income doesn’t fully cover repayments at today’s interest rates, James benefits from:
- Tenant Stability: Craigieburn’s strong demand from families and professionals means low vacancy risk.
- Capital Growth: With ongoing infrastructure upgrades, new schools, and a diverse community base, Craigieburn is tipped as a long-term growth corridor in Melbourne’s north.
- Lifestyle Alignment: As a teacher, James values investing in a community-rich suburb that reflects his own professional environment.
This case study shows how teachers, supported by tailored lending solutions, can access family-friendly suburbs with balanced yield and growth potential, positioning themselves for both stable income and equity over time.
Case Study: A Nurse Buying in Springfield Lakes
To illustrate how lending and property selection come together, let’s look at a practical scenario.
Profile: Sarah, a registered nurse, wants to purchase her first investment property in Springfield Lakes, QLD — a suburb benefiting from rail, healthcare, and education infrastructure.
- Median House Price (2025): $822,000
- Deposit: 5% ($41,100)
- Loan-to-Value Ratio (LVR): 95% (with LMI support available through home loans for nurses).
- Estimated Rental Yield: 4.2% (houses)
- Projected Annual Rental Income: ~$34,500
- Estimated Loan Repayments (at 6% interest, P&I): ~$55,000 annually
Outcome: While repayments exceed rental income initially, Springfield Lakes offers a mix of tenant stability (families and professionals) and long-term growth potential from its master-planned infrastructure pipeline. With a tailored loan product, Sarah gains entry into the market with minimal upfront savings, positioning herself for both cash flow improvements and equity growth over time.
This example highlights how professionals such as nurses, teachers, and doctors can leverage specialised loan solutions to secure properties in growth-backed suburbs, even with smaller deposits.
Doctors, on the other hand, often have access to unique lending opportunities that recognise their strong earning potential and career stability. With a home loan for doctors, medical professionals may benefit from reduced deposit requirements, waived LMI, and higher borrowing capacity, making it easier to secure investment properties in high-demand suburbs near major hospitals or infrastructure hubs.
Investor Strategies: Growth vs. Cash Flow
Not every investor enters the market with the same goals. Some prioritise long-term capital appreciation, while others focus on steady rental returns. Understanding the difference between these strategies can help you align suburb selection with your financial goals.
Capital Growth Suburbs
These are suburbs expected to increase in value over the medium to long term, often supported by infrastructure projects, population growth, or lifestyle appeal. While rental yields may be lower, the goal is equity growth over time.
- Woolloongabba (QLD): Part of Brisbane’s Olympic precinct with major transport upgrades and hospital expansions fuelling long-term demand.
- Clyde North (VIC): A fast-growing Melbourne growth corridor, attracting developers, new schools, and shopping precincts.
Cash Flow Suburbs
These suburbs deliver higher rental yields relative to purchase price, offering stronger ongoing income streams. They often appeal to investors focused on positive cash flow or portfolio diversification.
- Logan Central (QLD): Between Brisbane and the Gold Coast, known for affordable unit prices under $400k and yields above 5.5%.
- Campbelltown (NSW): Affordable housing below Sydney’s $1M threshold with strong rental demand from families, hospital workers, and university students.
A balanced portfolio often includes a mix of growth-focused and yield-focused properties, depending on risk appetite and financial position.
Final Insights: Making Informed Investment Choices
Navigating the Australian property landscape in 2025 requires more than just watching price trends. It calls for careful research, local market awareness and a clear understanding of your long-term objectives. Whether you’re exploring suburbs with capital growth potential or evaluating locations that could offer strong rental yield and affordability, approaching your decision with informed strategy may help you stay better positioned in a changing market.
If you’re currently assessing your next move, whether it’s your first investment or you’re expanding your portfolio, and want clarity around lending options, borrowing capacity or suburb comparisons, the team at Q Financial is here to support you. Our role is to simplify the process, offer tailored guidance, and help you make decisions that align with your unique circumstances.
Ultimately, the “best” location will always depend on your personal financial goals, timeframe, and appetite for risk. With the right support and local insight, you can move forward with greater confidence and clarity, whichever path you choose.
Frequently Asked Questions (FAQs)
Suburbs showing strong capital growth in 2025 tend to be those undergoing infrastructure expansion, benefiting from population growth, and supported by diverse local economies. Based on recent data, Woolloongabba (QLD) has recorded notable unit price growth linked to Olympic precinct upgrades, Clyde North (VIC) continues to attract developers and first-home buyers in Melbourne’s growth corridor, and Parramatta (NSW) has seen house values surge amid its transformation into Sydney’s “second CBD.”
Brisbane, the Gold Coast, and Townsville each present unique opportunities depending on your goals. Suburbs such as Logan Central, Acacia Ridge, and Coomera offer a balance of affordability and strong rental demand. Meanwhile, areas like Woolloongabba and Hamilton show potential for long-term value driven by infrastructure and lifestyle appeal. For regional access points, Townsville’s Kirwan and Annandale provide high yields with lower entry prices.
Suburbs like Logan Central and Springfield Lakes are drawing attention for their infrastructure investment, strong rental returns, and affordability. Meanwhile, areas like Woolloongabba continue to benefit from Olympic-linked projects, and Hamilton’s unit market is showing resilience despite house price softening, indicating possible long-term upside for select property types.
There are several emerging options across this price band:
- Under $500k: Melton and Wyndham Vale offer accessible entry points and are part of major outer growth corridors.
- Under $700k: Suburbs like Sunbury and Tarneit combine transport access with strong community infrastructure.
- Under $800k: Craigieburn and Frankston North show steady yields and appeal to both families and investors looking for long-term value.
There’s no single “best” suburb, but Liverpool, Penrith, and Blacktown stand out for their mix of transport access, urban renewal plans, and relatively affordable unit markets. Each suburb also benefits from proximity to major infrastructure such as the Western Sydney Airport, Sydney Metro West, and health or education precincts.
Based on current median prices, suburbs such as Campbelltown ($900k), Penrith ($927k), and Liverpool ($1.08M) are among the more affordable housing options in Greater Sydney. While some suburbs are just above $1 million, they still offer better relative value compared to inner-city areas and benefit from growing population demand and major public investment.
Coffs Harbour (NSW) and the Macedon Ranges (VIC) are two notable regional areas currently attracting investor attention. Coffs offers consistent demand from families, retirees, and holidaymakers, while Macedon Ranges towns like Kyneton and Gisborne cater to remote workers and lifestyle buyers, with proximity to Melbourne and boutique amenity supporting long-term interest.
A mortgage broker can help you assess your borrowing capacity, compare lenders’ investment loan products, and structure your loan for better cash flow or equity use. They may also provide guidance on interest-only vs. principal-and-interest loans and explain how different loan features can impact long-term outcomes.
Yes — Perth remains the strongest-performing capital city in early 2025, with CoreLogic data showing double-digit annual growth across multiple suburbs. Investors are drawn to the city’s affordability compared to Sydney and Melbourne, combined with ultra-low vacancy rates (around 0.7%). Popular areas like Baldivis, Joondalup, and Victoria Park are seeing strong demand, supported by employment in resources, healthcare, and education sectors.
The new Western Sydney International Airport, set to open in 2026, is reshaping property demand across the region. Suburbs such as Liverpool, Penrith, and Bringelly have already recorded price growth above the Greater Sydney average, with further uplift expected as the airport and its surrounding “Aerotropolis” create thousands of jobs. Improved connectivity through the Sydney Metro – Western Sydney Airport line is another major driver for long-term capital appreciation.
Yield-focused investors in 2025 are targeting suburbs with affordable entry prices and strong rental demand. Examples include Logan Central (QLD), Campbelltown (NSW), Salisbury (SA), and parts of Townsville (QLD), where yields often exceed 5–6%. These areas may not offer the fastest capital growth, but they provide stable rental income that can support portfolio cash flow.
Build-to-rent (BTR) developments are expanding rapidly in Sydney and Melbourne, adding large-scale rental supply to inner-city markets. While this may increase competition for landlords in some precincts, it also highlights the strength of rental demand nationally. For smaller investors, BTR projects can create opportunities in surrounding suburbs, where renters seek more affordable alternatives to premium high-rise complexes.
Yes — regional lifestyle markets remain popular, especially coastal towns and commuter-friendly hubs. Coffs Harbour (NSW), the Macedon Ranges (VIC), and Sunshine Coast (QLD) are attracting hybrid workers, downsizers, and young families. These areas combine lifestyle appeal with relatively lower entry prices, often supported by vacancy rates below 2% and growing long-term population demand.
Sustainability is becoming a key driver of tenant and buyer decisions in 2025. Properties with features like solar panels, double glazing, and high energy ratings often lease faster and attract premium rents. With government incentives for energy-efficient homes and rising utility costs, sustainable investments are not only eco-friendly but can also improve long-term returns.
The right choice depends on your goals. Growth-focused suburbs like Woolloongabba (QLD) and Clyde North (VIC) can build long-term equity, while yield-focused suburbs like Logan Central (QLD) and Campbelltown (NSW) provide stronger rental income today. Many investors aim for a mix of both, balancing cash flow with long-term capital appreciation.
