Australia's top 20 hotspot areas for property investor activity revealed
A new report into the investor landscape over the last six months, complemented by an interactive national map, has revealed which areas are demonstrating the highest level of investment property confidence.
From Perth’s south east and Melbourne’s west, to central Queensland, property investors are returning to the national property market in greater numbers.
A new report into the investor landscape over the last six months has revealed which areas are demonstrating the highest level of investment property confidence.
Specifically examining properties sold within the last six months and subsequently advertised as new rentals, the report showed that some clear patterns have emerged across the country, indicating substantial investor confidence.
This was especially the case within suburban and regional markets offering strong affordability and attractive rental yields.
The MCG Investor Index, commissioned from Suburbtrends by MCG Quantity Surveyors and shared with API Magazine, pinpointed individual suburb areas (SA2s) that warrant closer examination by property investors.
It identified suburbs that combine compelling rental yields, affordability, socio-economic stability, and strategic positioning.
Overall, investors continue to strategically target markets balancing affordability with attractive rental returns, underpinning a resilient national rental investment landscape.
Mike Mortlock, Managing Director at MCG Quantity Surveyors, said their report highlighted significant investor preference towards houses over units, underscoring investor sentiment that favours stronger capital growth prospects.
“The findings reveal a substantial bias towards houses, with 78 per cent of newly rented properties being houses compared to 22 per cent units—illustrating investor confidence in land-based assets for longer-term wealth accumulation.
“While units traditionally offer higher yields and attractive cash flows, investors are increasingly prioritising capital appreciation in their investment strategies.”
The Index identifies Australia’s top 20 regions based on recent sales-to-rental conversions.
Mr Mortlock said that in Victoria, Melbourne’s suburban regions, notably Melbourne–West and Melbourne– South East, recorded high numbers of properties shifting to rentals, predominantly houses, reflecting sustained demand for family-oriented accommodation.
“Investors are navigating a nuanced property landscape, balancing yield opportunities in units against stronger growth potential in houses,” Mr Mortlock said.
Queensland’s markets revealed a dual trend, with significant proportional shifts observed in Central Queensland and Townsville, driven by attractive yields and affordability, complemented by continued lifestyle-driven investor interest in coastal hubs like the Gold Coast.
Western Australia showed high investor activity in Perth’s suburban areas, particularly Perth–South East, alongside remarkably high proportional transitions in regional Outback areas, underscoring affordability and yield potential in more remote locations.
South Australia exhibited robust suburban rental transitions in Adelaide–North and Adelaide–South, accompanied by strong regional performances in the state’s South East, reinforcing the appeal of affordable housing markets.
Tasmania, ACT, and Northern Territory provided diverse investor landscapes, from the ACT’s premium suburban opportunities near Canberra, through Tasmania’s regional areas such as Launceston, characterised by affordable prices and solid rental yields, to Northern Territory’s blend of high yields and affordability.
Mr Mortlock said the strong emphasis on houses is indicative of investor confidence in the enduring value appreciation associated with land-based assets.
“Houses often present greater opportunities for capital appreciation due to land scarcity, redevelopment potential, and enduring suburban demand.
“Conversely, the smaller proportion of units reflects their traditional role as income-oriented investments, attractive primarily to investors prioritising immediate rental returns and cashflow stability, but less focused on significant long-term capital gains.”
Across key NSW regions, the market analysis revealed significant investor activity, with numerous properties quickly shifting from recent sales into rental listings.
Sydney’s Outer West and Blue Mountains displayed the strongest conversion rate at 7 per cent, predominantly featuring detached homes, aligning with robust demand for affordable family-oriented housing.
Newcastle and Lake Macquarie similarly recorded notable activity (6 per cent), overwhelmingly consisting of houses, reflecting demand driven by lifestyle preferences and affordability relative to inner-city regions.
Strong investor activity was recorded across South Australia, with notable proportions of recently sold properties quickly transitioning into rentals.
Adelaide–North recorded the highest volume, with 72 new rental properties (10 per cent of recent sales), predominantly houses, highlighting sustained suburban rental demand. Adelaide–South similarly attracted investors, registering 51 new rentals (11 per cent), also heavily skewed towards houses, indicating solid suburban investment appeal.
In Perth, South East recorded the highest number of new rentals (110 properties), representing 11 per cent of recent sales, predominantly houses, driven by strong suburban rental demand.
Perth–South West similarly demonstrated robust investment activity, adding 84 properties (11 per cent), again primarily houses. Perth–North West had 77 new rentals (9 per cent), reinforcing suburban investor confidence, largely centred on detached homes.
