All mapped out: 2024's top three investment suburbs for each capital city
Exclusive to API Magazine, our interactive map complements comprehensive analysis and editorial highlighting the best three property investment suburbs in each national capital city.
By applying a wide range of measurements and statistics on every suburb in Australia, the three best suburbs for property investment heading into 2024 have been identified for each capital city, according to those parameters.
The selections have emerged after a process aggregating multiple layers of market data to provide a nuanced and empirical understanding of a suburb’s investment credentials.
Australia’s property market offers diverse investment opportunities across its capital cities, and recent trends highlight the significance of rental affordability as a key metric for potential investors.
Each city showcases unique market characteristics influenced by regional economic conditions, property types, and local demographics.
Interactive map: Top 3 investments suburbs in each major city
Zoom in on your city of choice to reveal the three top investment suburbs, and drag to and click on the location blob for an array of data on each investment hotspot selection.
In the heart of the nation, Sydney offers units priced around the $600,000-$750,000 mark, promising rental yields above 4 per cent.
Melbourne’s housing market boasts properties with prices ranging from $800,000 to more than $1 million, reflecting its status as a major hub.
Brisbane’s units stand out with impressive yields nearing 6 per cent, making it an attractive prospect for those prioritising rental returns.
Adelaide and Perth provide homes in the mid-$500,000 range, with Perth houses yielding over 5 per cent.
Hobart’s property prices span from the mid-$400,000 to close to $800,000, and its houses are fetching yields of around 4-5 per cent. The Australian Capital Territory (ACT) presents a mixed bag with both units and houses on offer, with the latter priced up to $870,000 and ensuring competitive yields, while Darwin’s property market remains vibrant, with houses priced between $600,000 and $750,000 and promising yields surpassing 5 per cent.
Rent a key variable for investment returns
A key observation from the data is the importance of rental affordability.
With the rising costs of living and housing prices, ensuring rent remains below 30 per cent of household income is essential for long-term stability.
Areas where renters consistently allocate more than 30 per cent of their income towards rent may soon witness market volatility, characterised by rising vacancy rates. As vacancies increase, there’s an expected adjustment in rents, often aligning them back to more affordable rates.
A general benchmark in housing economics suggests that when rents consume more than 35 per cent of a household’s income, financial stress ensues.
Locations witnessing a sustained breach of this threshold are poised to experience market fluctuations.
One of the first indicators is a spike in vacancy rates. As renters find it difficult to meet high rental demands, properties remain untenanted. This saturation, in turn, exerts downward pressure on rents, nudging them back into more affordable brackets.
In our analysis, we advocate for locations where rent constitutes less than 30 per cent of the household income, viewing it as a safer, sustainable benchmark.
Our curated list showcases a blend of areas, some toeing the line of affordability and others comfortably within the ideal range.
Such diversity allows investors and renters alike to delve deeper, gauge market nuances, and make informed decisions in an ever-evolving rental landscape.
Sydney suburb analysis
Each of these suburbs, while distinct in their characteristics, present a unique investment proposition, tailored to diverse investor profiles and preferences within Sydney’s vast property canvas.
Located in the Sutherland region of Sydney, Engadine presents itself as a prosperous investment hub for units. The current median list price sits at $748,000, having experienced a slight inventory decrease of 0.11 over the past three months.
With an average household weekly income of $2,303, the suburb boasts an impressive 79.55 per cent of detached houses and a balanced ownership to rental ratio, reflected in its 37.63 per cent fully owned and 13.5 per cent rented statistics. The investor score of 76, complemented by a low vacancy rate of 0.8 per cent, underlines Engadine’s appeal in the investment realm.
Northmead, nestled within Sydney’s Parramatta region, exhibits a promising investment landscape for unit enthusiasts. The units command a median price of $600,000 and have seen a -0.65 inventory shift in the last quarter.
The socio-economic ranking stands at 9, bolstered by an average household weekly income of $1,924. The tenure mix reflects a youthful demographic, with 25.86 per cent fully owning and a notable 32.18 per cent renting their homes.
Northmead’s investor score of 73 is a testament to its evolving market dynamics and investment potential.
In the Inner South West corridor of Sydney lies Mortdale, a suburb with a rich blend of property investment opportunities.
Units are priced at a median of $650,000 and have seen an inventory change of -0.42 over the past three months. With an investor score of 75, Mortdale accentuates its market attractiveness with an average household weekly income of $1,995.
The property composition showcases 42.89 per cent of detached houses. Ownership is fairly distributed with 29.89 per cent fully owning their homes and 36.64 per cent in the rental market. The socio-economic ranking aligns with its peers at 9, reinforcing Mortdale’s stature in the investment domain.
Melbourne suburb analysis
These Melbourne suburbs, with their distinctive attributes and robust investor scores, present compelling investment narratives, each appealing to different investor inclinations within Melbourne’s vast real estate mosaic.
Situated in Melbourne’s North East, Yallambie presents an attractive prospect for house investors. The prevailing median list price is $900,000, coupled with an inventory drop of -0.13 in recent months.
The area boasts an average household weekly income of $2,320. With a substantial 89.29 per cent of properties being detached houses, Yallambie has a balanced tenure ratio with 33.54 per cent of properties fully owned and 25.97 per cent rented. Its investor score stands commendably at 81, further emphasising its potential in the investment circuit.
Nestled in the Outer East of Melbourne, Croydon South is a notable destination for those eyeing house investments. Houses carry a median tag of $816,410, and inventory has receded by -0.47 in the past quarter.
A socio-economic rank of 8 is complemented by an average household weekly income of $1,876. A prominent 91.95 per cent of properties are detached houses, with tenure leaning more towards ownership at 33.43 per cent fully owned and 19.38 per cent rented.
The suburb’s investor score mirrors Yallambie’s at 81, reflecting its promising investment climate.
Located in Melbourne’s Outer East, Heathmont is a budding investment hotspot for houses. The properties are valued at a median of $1,012,000, and inventory changes have been minimal at -0.01 in the past three months. The suburb boasts an affluent average household weekly income of $2,140.
A staggering 93.72 per cent of properties are detached houses, creating a promising landscape for house investors. The balance between fully owned properties at 38.26 per cent and rentals at 17.95 per cent denotes stability. An investor score of 80 further consolidates Heathmont’s position in the investment domain.
Brisbane suburb analysis
Brisbane’s property market, teeming with diversity, presents a trove of opportunities for investors. These suburbs, with their distinct attributes and robust investor scores, offer compelling narratives for those keen to delve into Brisbane’s real estate domain.
Situated in Brisbane’s Eastern precinct, Alexandra Hills has carved a niche for unit investors. The current median list price is pegged at $419,000, with a modest inventory dip of -0.37 over the preceding months.
The suburb boasts a considerable average household weekly income of $1,829. Dominated by detached houses, constituting 93.29 per cent, the tenure landscape displays a 28.37 per cent fully owned and 21.86 per cent rental spread. An investor score of 83 solidifies Alexandra Hills as a promising investment locale.
Another gem in Brisbane’s East, Capalaba showcases potential for those eyeing unit investments. Units bear a median price tag of $479,750, coupled with an inventory reduction of -0.58 in the recent quarter.
A weekly average household income of $1,747 reflects the socio-economic fabric of the suburb. An impressive 78.60 per cent of properties are detached houses, and the tenure mix is balanced with 29.94 per cent fully owned properties and 25.94 per cent rented.
The investor score of 84 underscores Capalaba’s allure for discerning investors.
Positioned in Brisbane’s Northern belt, Carseldine stands out as an investment hotspot for units. Units fetch a median of $550,000, experiencing an inventory change of -0.66 in the last three months.
The socio-economic stature is evident, with an average household weekly income of $2,048.
The property landscape is marked by 71.44 per cent of detached houses, and the tenure balance tilts towards ownership at 34.42 per cent fully owned and 27.4 per cent rented.
With an investor score of 82, Carseldine punctuates its status as an attractive investment destination.
Adelaide suburb analysis
These Adelaide suburbs, each with its unique attributes, offer a compelling narrative for investors.
The blend of affordable prices, socio-economic factors, and robust investor scores renders these suburbs as prominent focal points within Adelaide’s expansive real estate tapestry.
Nestled in the Central and Hills region of Adelaide, Meadows offers a delightful prospect for house buyers. With a current median list price of $635,970 and an inventory contraction of -0.81 over the past three months, the suburb illustrates promising investment dynamics.
Households in Meadows earn an average weekly income of $1,964, and the property landscape is dominated by detached houses, constituting a whopping 99.15 per cent. With 31.03 per cent of properties fully owned and 10.96 per cent rented, its investor score of 87 epitomises Meadows’ investment potential.
Another gem in Adelaide’s Central and Hills district, Nairne is ripe for house investments. Homes here carry a median price tag of $583,000, and there has been a -0.74 inventory shift in the recent quarter.
The socio-economic ranking is set at 6, reinforced by an average weekly household income of $1,776. The vast majority, 98.50 per cent, of properties are detached houses, indicating a predominant preference. Tenure leans more towards ownership with 24.59 per cent fully owned properties and a rental rate of 20.68 per cent. Nairne’s investor score of 85 accentuates its investment allure.
Located in the Central and Hills belt of Adelaide, Woodside emerges as a viable investment haven for house seekers. Houses are pegged at a median of $563,850, with the inventory remaining stable in the past quarter. The socio-economic fabric is evident with households drawing an average weekly income of $1,483.
Detached houses make up 90.09 per cent of properties, setting a pronounced trend. With 36.21 per cent of properties fully owned and 19.17 per cent rented, Woodside scores a commendable 84 on the investor scale.
Perth suburb analysis
Perth’s property landscape, with its unique suburb attributes and sturdy investor scores, offers a myriad of possibilities. These suburbs present diverse narratives, each appealing to distinct investor profiles, cementing Perth’s stature as a robust real estate hub.
Located in Perth’s North East corridor, Eden Hill emerges as an enticing spot for house investments. The median list price for houses stands at $494,700. Over the recent quarter, inventory displayed a modest increment of 0.03, hinting at stable market conditions.
Households enjoy an average weekly income of $1,664. Detached houses dominate the property landscape, accounting for 86.38 per cent. A balanced tenure mix showcases 30.8 per cent of properties fully owned, juxtaposed with a rental rate of 23.21 per cent.
Eden Hill boasts an investor score of 84, underscoring its investment potential.
Situated in the North West region of Perth, Edgewater offers a blend of suburban charm and investment promise. Houses in this precinct bear a median tag of $613,083. Despite a minor inventory dip of -0.17 in the preceding months, the suburb radiates appeal with its high average household weekly income of $2,016.
A dominant 95.65 per cent of properties are detached houses. The tenure landscape is healthy, with 35.78 per cent of homes fully owned and 15.9 per cent rented. Edgewater’s investor score of 83 reinforces its allure in the Perth market.
Nestled in Perth’s North East, Greenmount stands out as a prime house investment destination. Homes are priced at a median of $599,000, with inventory changes being relatively stable at -0.08 over the past three months.
The average household weekly income here is $1,669. Detached houses form a substantial 94.18 per cent of the properties. Tenure leans towards ownership, with a notable 41.4 per cent of homes fully owned, counterbalanced by a rental percentage of 11.16 per cent.
With an investor score of 84, Greenmount accentuates its position as a top-tier investment hub.
Hobart suburb analysis
Hobart’s real estate sector, as underscored by the aforementioned suburbs, illustrates both diversity and depth. Lauderdale, Lindisfarne, and Risdon Vale each bring their unique characteristics to the table, providing investors with a varied palette of opportunities in the Tasmanian capital.
One key variable to watch is rental affordability, which is poor for many suburbs in Hobart.
Positioned in the picturesque environs of Hobart, Lauderdale beckons with an investment score of 71. Houses in Lauderdale command a median price of $795,000, with a lease median now at $650.
The inventory has experienced a reduction of -1.16 over the past three months, indicating increased demand. Households in Lauderdale command an average weekly income of $1,877.
The predominance of detached houses at 94.20 per cent hints at the suburb’s traditional allure, while a healthy mix of 37.72 per cent fully owned properties juxtaposed with 10.24 per cent rentals underscores its balanced appeal.
Lindisfarne, another gem in Hobart’s crown, presents a median house price of $770,000 and an investor score of 68. A bustling inventory change of -0.84, coupled with an average household weekly income of $1,565, paints a vivid investment picture.
Detached houses dominate the landscape, accounting for 88.57 per cent of properties. Lindisfarne has a balanced tenure, with 38.63 per cent of homes fully owned and 22.24 per cent rented.
Risdon Vale offers a unique blend of affordability and potential. The suburb boasts a median house price of $475,000 and a commendable investor score of 68.
The current lease median stands at $460. The suburb’s average weekly income is pegged at $1,187, making it an affordable option for many. Detached houses, representing 94.14 per cent of properties, define Risdon Vale’s architectural landscape.
Tenure is balanced with 22.12 per cent of homes fully owned, while 34.16 per cent are on rent.
ACT suburb analysis
The Australian Capital Territory offers a range of property opportunities across its suburbs, with each presenting its unique attributes. From the stable demand in Banks to the affluent community in Gowrie, potential investors have an array of choices in this region.
Located within the Australian Capital Territory, Banks has an investor score of 80, reflecting its potential. The median house price stands at $730,000, with the current lease median at $580. The inventory remains relatively stable with no change over the past three months.
Households in Banks enjoy an average weekly income of $2,419. With 79.05 per cent of the property type being detached houses and 21.22 per cent of them fully owned, this suburb presents a balanced housing market.
Chifley, a vibrant part of the ACT, has a median unit price of $425,000 and boasts an impressive investor score of 84.
With a decrease in inventory by 0.22 over the last three months, demand appears to be on the rise. Chifley residents earn an average weekly income of $2,347. The suburb has a relatively balanced ownership structure with 31.92 per cent of the units fully owned and 32.29 per cent rented.
Gowrie offers houses with a median price of $870,000 and has achieved an investor score of 82.
This suburb has seen a significant decrease in inventory by 1.68 over the last three months, indicating increased demand. The average household income stands at $2,674, making it one of the more affluent suburbs.
Detached houses dominate the landscape, representing 99.27 per cent, and 34.72 per cent of homes are fully owned.
With an investor score of 83, Hawker stands out in the ACT housing market. The median unit price in Hawker is $650,000 with a current lease median of $480.
The inventory has increased by 1.19 in the past three months. The average weekly income for households in this suburb is $2,251. The majority of properties are units, with 67.29 per cent being detached houses.
There’s a significant portion of units that are fully owned at 44.62 per cent, highlighting the suburb’s mature market.
Darwin suburb analysis
Darwin’s housing market offers a blend of traditional charm and modern appeal. Each suburb provides distinct opportunities, from the stability of Howard Springs to the potential of Wanguri. Investors and homeowners alike can find value in this diverse region of the Northern Territory.
Nestled in the Northern Territory, Howard Springs presents a median house price of $736,250 with an average lease median of $680. There has been a slight decrease of 0.31 in inventory over the last three months. Households in this suburb enjoy a weekly income of $2,560.
A significant 98.26 per cent of the properties are detached houses. With 33.37 per cent of the homes being fully owned, Howard Springs achieves an investor score of 77, showcasing its appeal in the Darwin region.
With a unique name and notable characteristics, Humpty Doo boasts a median house price of $749,000 and a current lease median of $650. There’s been a decline in inventory by 0.73 in the past three months.
Residents have an average weekly income of $2,401. Detached houses dominate the property landscape, accounting for 96.37 per cent. A balanced housing market is observed with 23.36 per cent of houses fully owned. The suburb attains an investor score of 77.
Wanguri, a part of Darwin’s vibrant housing market, has a median house price of $619,000 and a lease median of $650.
Interestingly, the inventory has dropped significantly by 2.39 over the last quarter. The average household in Wanguri earns a weekly income of $2,439. The majority of properties, 91.07 per cent, are detached houses.
Notably, 30.51 per cent of these houses are rented, indicating a relatively high rental market in this suburb. Wanguri secures an investor score of 73.
The process of selecting our top three investment suburbs
The Australian property market is a diverse landscape, varying not just from city to city, but from one suburb to the next. To streamline the decision-making process for potential investors, the Investor Score has been introduced. This holistic metric, underpinned by an array of pivotal variables, provides a comprehensive insight into suburb and regional investment potential. Here’s a closer look at the core components of the score:
- Inventory Suburb Now: A quintessential snapshot, this metric reveals the existing property inventory in a suburb. A high inventory might signify a buyer’s market, whereas a reduced one might hint at a seller’s advantage.
- Suburb Inventory 3 Month Change: Capturing the pulse of market dynamism, this variable quantifies the changes in property inventory over a quarter. Rapid fluctuations can indicate market volatility or emerging trends.
- Inventory SA3 Now: Delving into a broader perspective, this metric encapsulates inventory data for the encompassing SA3 region. Such a regional perspective can highlight broader market movements that may influence the suburb.
- SA3 Inventory and Price Change Over the Last Three Months: By juxtaposing inventory shifts with price alterations at the SA3 level, this metric offers a multi-dimensional view of regional market behaviour, essential for discerning investors.
- Affordability for Buyers: As the name suggests, this variable represents the median house price’s accessibility by comparing it with average income levels. A crucial metric for first-time buyers and investors targeting a particular income bracket.
- Proportion of Properties Fully Owned: Serving as an indicator of market maturity, this metric underscores areas where homeowners have fully settled their mortgages, possibly hinting at long-term stability or affluent pockets.
- Rental Yield: A direct reflection of potential return on investment, this variable is indispensable for investors with a rental income focus.
- Rent Affordability and Rental Tenure: These metrics provide a dual insight – first into how affordable rents are relative to average incomes, and secondly, the proportion of tenants in a given suburb. A high proportion might indicate a transient population or a rental hotspot.
- SA3 and SA2 Area Vacancy Metrics: These indicators, offering both a micro and macro view, chart the vacancy trends in the region. Persistently high or rising vacancies might raise red flags for investors eyeing rental incomes.
In conclusion, the Investor Score is a composite, data-driven tool designed for contemporary property investors. By aggregating multiple layers of market data, it aims to provide a nuanced and empirical understanding of a suburb’s investment credentials. As we delve deeper into specific suburbs in subsequent sections, this score will serve as an invaluable compass, guiding our analytical journey across Australia’s vibrant property terrain.
