AI offers up its 2025 capital city property investment hotspots

Artificial intelligence (AI) enables real estate investors to use predictive analytics to make real estate investment decisions based on data. AI algorithms can predict property values, rental yields, and potential returns on investment by analysing market trends, economic indicators, and historical data.

On top of that, when most of the country is taking a public holiday and a journalist’s contacts are enjoying a well-deserved long weekend, AI is not at the beach, a family picnic, nursing a hangover in front of the television, or wishing they’d never started on that house painting project.

And so it was that as the majority of the country basked in a day off, I turned to AI to share its opaque font of knowledge and mind-numbing capability to unravel billions of logarithms and data points, to cast judgement on the country’s 2025 property hotspots.

After all, if it is good enough for a real estate peak body to have an AI-generated board member, it’s good enough for us to seek the technology’s insight.

Chat GPT was even kind enough to provide an intro’ paragraph before revealing where ‘it’ believes property investors should be buying in Australia's capital cities with an eye on 2025 and beyond.

“As 2025 approaches, Australian property investors are increasingly focused on identifying promising suburbs for their next investment,” Chat GPT told Australian Property Investment Magazine.

“With economic trends and market shifts in mind, property hotspots are emerging across the capital cities.

“Here, we explore the three best investment suburbs in each Australian capital city that are poised for growth,” the chatbot said, choosing to describe itself with the pronoun ‘we’.

Sydney

1. Wollongong
   Located just south of Sydney, Wollongong is becoming a prime area for young families and professionals. Its relatively affordable property prices compared to Sydney’s inner city, combined with excellent transport links, make it an attractive choice. Wollongong is also benefiting from significant investment in infrastructure and amenities. (Editor’s note: Despite stipulating to Chat GPT that we were targeting capital city suburbs, it seems so impressed with Wollongong that it acknowledges it is south of Sydney but includes it anyway).
2. Parramatta
   As Sydney’s second CBD, Parramatta is a hive of activity. The area is witnessing extensive development plans, including the new metro line that will improve connectivity. With a diverse population and an array of employment opportunities, Parramatta is one of Sydney’s fastest-growing property markets.
3. Inner West (Marrickville and Dulwich Hill)
   The Inner West suburbs of Marrickville and Dulwich Hill are gaining popularity for their vibrant community atmosphere and cultural diversity. With a mix of older homes and new developments, these suburbs attract young professionals and families seeking a lively lifestyle within proximity to the CBD.

Melbourne

1. Melton
   Melton is emerging as a hotspot for investors due to its affordability and growth potential. The suburb is part of the wider western region’s growth corridor, attracting first-time buyers and investors looking for rental yields. Future infrastructure developments, including new transport links, make it a sound investment choice.
2. Point Cook
   This suburb offers a blend of lifestyle and convenience, with ample shopping and recreational facilities. Point Cook has seen significant population growth over the past few years, alongside substantial housing developments. As demand continues to rise, property prices are expected to appreciate significantly.
3. Coburg
   Coburg is experiencing a renaissance, with revitalisation projects and a thriving arts scene. Its vibrant café culture and excellent public transport options make it appealing for young professionals. As Melbourne expands, suburbs like Coburg are becoming increasingly attractive to both investors and residents.

Brisbane

1. Logan Central
   Logan is a hotspot for affordable housing, with strong population growth expected in coming years. The suburb is positioned between Brisbane and the Gold Coast, providing an ideal location for commuters. Infrastructure developments, such as the expansion of the Logan Motorway, enhance its investment potential.
2. Chermside
   Chermside is a rapidly growing suburb that boasts major shopping and healthcare facilities. With ongoing urban development and increasing demand for housing, this area is seen as a prime opportunity for both capital growth and rental income, particularly among families and professionals.
3. North Lakes
   North Lakes has become synonymous with community living, appealing to families and retirees alike. It offers a range of amenities, including schools, parks, and shopping centres. Its ongoing development makes it a smart investment choice, as housing supply cannot keep pace with demand.

Perth

1. Baldivis
   Baldivis is fast becoming a popular choice for families and young professionals due to its affordability and proximity to Perth’s beaches. Recent infrastructure projects are making the suburb more accessible, and as Perth continues to grow, the demand for housing in Baldivis is expected to rise.
2. Mount Pleasant
   This riverside suburb is one of the most sought-after areas in Perth. With excellent schools, parks, and the nearby Canning River, it attracts families and professionals alike. As affluent buyers seek quality living spaces, Mount Pleasant continues to show strong capital growth potential.
3. Bayswater
   Bayswater is on the rise, with significant gentrification taking place. Situated close to the CBD and with great rail connectivity, it is attracting young renters and buyers. As local amenities and infrastructure develop, Bayswater is set to become one of Perth’s prime investment locations.

Adelaide

1. Mawson Lakes
   Known for its modern developments and excellent community facilities, Mawson Lakes is an attractive suburb for investors. Its proximity to universities and technology parks makes it a desirable location for students and professionals, leading to strong rental demand.
2. Hawthorn
   Hawthorn is becoming increasingly popular due to its mix of heritage homes and modern developments. Its convenient location and good schools attract families, contributing to its steady property value growth.
3. West Lakes
   With its beautiful lakeside views and recreational opportunities, West Lakes is a prime suburb for lifestyle-driven buyers. The area has seen new developments and an influx of young families, making it a promising investment choice for the future.

Canberra

Wright is a suburb in Canberra’s Molonglo Valley, is gaining attention due to its proximity to nature parks and the city’s expanding infrastructure. With significant developments underway, including schools and shopping centres, Wright is expected to experience substantial price appreciation. The suburb appeals to families and professionals seeking a mix of suburban tranquility and urban convenience, making it a prime target for property investors looking for long-term growth.

Hobart

Kingston, located just south of Hobart, is rapidly becoming a sought-after suburb thanks to its affordable housing options and vibrant community. The suburb’s appeal is heightened by its stunning coastal views and recreational facilities, attracting young families and retirees alike. With increased demand for housing and a stable rental market, Kingston is tipped as one of Hobart’s top investment prospects for 2025. Upcoming infrastructure improvements, including transport links to Hobart’s CBD, further bolster its investment potential.

Darwin

Palmerston City in Darwin stands out as a key property investment hotspot. As the second-largest city in the Northern Territory, Palmerston is experiencing rapid population growth, driven by ongoing government initiatives that foster economic development. The suburb offers affordable housing prices compared to other urban centres, alongside a growing infrastructure, including new schools and shopping precincts. Investors should take note of Palmerston City, as it offers a strong rental yield and potential for capital appreciation amidst Darwin’s evolving economy.