As we step into the final quarter of 2024, Australia’s real estate market continues to evolve, offering hidden gems for property investors. While Sydney and Melbourne are facing price slowdowns and affordability issues, other parts of Australia are booming with high capital growth and rental yields. Smart investors are shifting their focus to more affordable suburbs with strong potential, so knowing where these opportunities lie is essential.
The Top Suburbs for Investment Property in Australia (2024)
In 2024, regional and smaller capital cities offer more attractive investment prospects than Sydney and Melbourne’s traditional markets. Here are some top-performing suburbs where investors see the best returns.
1. Brisbane Suburbs
Brisbane remains a hotspot for real estate investment in 2024, with its combination of affordability, infrastructure projects, and population growth driving property values upward.
- Taringa: Known for its proximity to the CBD and educational institutions, Taringa is a top choice for investors. The suburb has seen consistent demand for both rental and owner-occupied properties.
- Median House Price: $1.58 million
- Rental Yield: 3% (houses), 4.8% (units)
- Ashgrove: This leafy inner suburb is experiencing strong demand due to its family-friendly amenities and excellent public transport links.
- Median House Price: $1.25 million
- Rental Yield: 4.5% (houses)
2. Perth Suburbs
With more affordable entry points and solid rental yields, Perth is another hotspot for investors in 2024. The city’s growth is driven by economic stability, population growth, and significant infrastructure projects.
- Armadale: Armadale offers strong rental yields and is an affordable option for those entering the Perth market.
- Median House Price: $400,000
- Rental Yield: 6.2%
- Rockingham: Located near the coast, Rockingham is a popular investment destination for investors looking for both capital growth and lifestyle appeal.
- Median House Price: $550,000
- Rental Yield: 5.7% (houses)
3. Gold Coast Suburbs
The Gold Coast remains a prime area for both short-term and long-term investors, with its tourism-driven economy providing consistent demand for rental properties.
- Southport: With its central location and thriving rental market, Southport continues to offer high rental yields and affordable unit prices.
- Median Unit Price: $556,000
- Rental Yield: 9%
- Coomera: An up-and-coming suburb driven by infrastructure growth and family-friendly amenities, Coomera is gaining traction among investors for both capital growth and rental returns.
- Median House Price: $720,000
- Rental Yield: 5.2%
Affordable Australian Suburbs with High Capital Growth in 2024
While Sydney and Melbourne may be struggling with affordability, regional areas and smaller capital cities are experiencing a boom. Investors are turning to these areas to find affordable properties with the potential for strong capital growth.
1. Bundaberg, Queensland
Located on the coast, Bundaberg has become one of the most sought-after regional areas for investors. It offers affordable entry points and strong rental yields, making it an excellent choice for those seeking both capital growth and cash flow.
- Median House Price: $731,000
- Rental Yield: 6.51%
2. Rockhampton, Queensland
Known for its affordable house prices and strong rental demand, Rockhampton is gaining attention for its high rental yields and steady capital growth, particularly in the more affordable suburbs like Berserker.
- Median House Price: $232,500
- Rental Yield: 6-7%
3. Toowoomba, Queensland
Toowoomba offers an attractive option for investors looking for affordability and growth. With significant infrastructure developments and a growing population, Toowoomba continues to show steady growth.
- Median House Price: $550,000
- Rental Yield: 5-6%
Why These Suburbs Are Gaining Attention
The common factors driving investment in these areas include:
- Affordability: With the high prices in Sydney and Melbourne, more investors are seeking affordable alternatives with growth potential.
- Infrastructure Projects: Regions benefiting from government infrastructure spending—such as new transportation links, schools, and hospitals—are experiencing an uplift in property demand.
- Rental Yields: Investors are prioritizing regions that offer strong rental yields, ensuring positive cash flow even during market fluctuations.
For a deeper analysis of these investment hotspots, visit our Investment Properties page.
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Maximizing Rental Yields in 2024: Where to Invest for Cash Flow
As an investor, securing properties that generate strong rental yields can make the difference between positive and negative cash flow. In 2024, high rental yields are found in regional areas, coastal suburbs, and emerging urban hubs, which combine affordability with strong tenant demand. Here’s how to identify these opportunities and make the most of them.
1. Focus on Suburbs with Strong Rental Demand
Investing in suburbs with a high proportion of renters ensures steady rental income. Suburbs near employment hubs, universities, or tourist attractions are particularly attractive to investors.
Gold Coast – Southport
Southport continues to be one of the highest-yielding suburbs in Australia, particularly for unit investments. The combination of central location, access to services, and proximity to the beach makes it a highly desirable area for both long-term residents and short-term renters.
- Median Unit Price: $556,000
- Rental Yield: 9%
Brisbane – Coorparoo
Coorparoo is a suburb that appeals to families and professionals due to its proximity to the city and good public transport links. Investors are drawn to Coorparoo for its strong rental demand and solid rental returns.
- Median House Price: $1.2 million
- Rental Yield: 4.1%
Regional Queensland – Bundaberg
Regional areas like Bundaberg offer both affordability and high rental returns. With a strong demand for rental properties from locals and regional workers, Bundaberg is a consistent performer in terms of cash flow for investors.
- Median House Price: $731,000
- Rental Yield: 6.51%
2. Target Suburbs with Growing Infrastructure
Infrastructure plays a crucial role in determining the future capital growth of a suburb. New roads, schools, hospitals, and shopping centres increase the livability of an area and draw in new tenants.
Toowoomba, Queensland
Toowoomba is undergoing major infrastructure upgrades, including the construction of new transportation links and hospital expansions. These developments are expected to increase demand for both rental properties and owner-occupied homes, making it an attractive market for investors.
- Median House Price: $550,000
- Rental Yield: 5-6%
Perth – Baldivis
Baldivis is benefiting from Perth’s infrastructure expansion, with new roads and rail lines connecting the suburb to the central business district. The increase in accessibility has made Baldivis a prime location for investment in 2024.
- Median House Price: $500,000
- Rental Yield: 5.5%
For more detailed insights into how infrastructure is driving growth in these suburbs, visit our Market Insights page.
Identifying the Next Up-and-Coming Suburbs
Savvy investors are always looking for the next big thing in real estate. By identifying areas that are on the verge of growth, you can secure properties before prices skyrocket. Here are a few strategies to spot these emerging suburbs:
1. Track Auction Clearance Rates
Suburbs with high auction clearance rates signal strong buyer demand, which can indicate future growth in property values.
- Gold Coast – Nerang: With increasing demand and a high auction clearance rate, Nerang is emerging as a key suburb to watch in 2024. It’s seen as a more affordable option compared to other coastal suburbs, making it attractive for both investors and renters.
- Median House Price: $720,000
- Rental Yield: 5.2%
2. Follow Population Growth Trends
Areas experiencing population booms often see a corresponding rise in property demand and rental prices. Suburbs near new job hubs or regional centres experiencing migration from major cities are especially promising.
- Sunshine Coast: With ongoing infrastructure developments and strong population growth, the Sunshine Coast remains a strong investment prospect. Suburbs like Caloundra and Maroochydore are popular due to their beachside locations and access to amenities.
- Median House Price: $850,000
- Rental Yield: 4.5%
3. Government Investment and Local Economic Growth
Suburbs benefiting from government-led projects and local economic growth are more likely to experience strong rental demand and capital growth. Look for areas with planned developments such as transportation upgrades, new schools, and hospitals.
- Rockhampton, Queensland: Ongoing government investment in regional Queensland’s mining and agricultural sectors has boosted the local economy and housing demand. Rockhampton’s affordability and solid rental yields make it a standout investment location in 2024.
- Median House Price: $232,500
- Rental Yield: 6-7%
Conclusion: Capitalizing on Australia’s Best Investment Suburbs in 2024
In 2024, the key to successful property investment lies in identifying affordable areas with high rental yields and capital growth potential. Suburbs like Southport, Toowoomba, Bundaberg, and Rockhampton are emerging as top performers due to their affordability, strong rental demand, and government-led infrastructure projects.
Investors who focus on these high-growth suburbs, leverage infrastructure trends, and target rental demand hotspots are well-positioned to maximize their returns in the coming years.
If you’re ready to take advantage of Australia’s booming real estate market, visit RealtyAI for expert advice and tools to help you succeed. Explore our AI Real Estate Investment Tools to make smarter, data-driven decisions in 2024.
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