Top suburbs to invest $750,000 in property revealed
Based on a $750,000 budget, we reveal the top three suburbs in which to invest in real estate in four major cities, and uncover the city that presents the best investment opportunity.
When presented with a buyer's brief of a $750,000 budget, a comparison of four of Australia’s capital cities left one clear winner for property investors.
Criteria for the buyers brief included being a maximum distance of 15km from the CBD and a minimum rental yield of 4.5 per cent plus 12 other metrics.
Our journey began with the identification of suburbs that could offer at least two listings, meeting the initial criteria to make our shortlist. Armed with this shortlist, we then set out to apply our 14 key metrics across various capital cities.
These metrics encompass a comprehensive range of factors, from the sheer number of suburbs and available listings to more nuanced considerations such as median yield, rental affordability, socio-economic ranking, and price growth over different time frames.
The objective was to provide a panoramic view of the real estate landscape, allowing for a robust and holistic evaluation by prospective investors.
The cities in contention—Sydney, Brisbane, Adelaide, and Perth—each possess unique characteristics and strengths. Melbourne was excluded because when the extensive data was collated, Victoria was undecided about rent caps and investors were shying away until that was resolved.
The final outcome saw Perth dominate in six categories, with Adelaide and Brisbane earning four criteria wins. Sydney’s high priced market could not compete at this budget level, with just one shared win with Brisbane.
Perth excels in the number of suburbs available that match our buyer brief, listings available, house options, median yield, fully owned properties, and three-month price growth.
Adelaide is top in vacancy rate, six-month price growth, and both current and three-month change in inventory levels.
Brisbane shines in three categories, including rental affordability, highest median income, and closest proximity to the CBD. Sharing the highest socio-economic ranking with Brisbane, Sydney’s lone win reflects its status in this crucial aspect.
Read on to uncover the top three suburbs in each of our analysed cities for property investments of $750,000.
|Metric||Top Ranked City||Sydney||Brisbane||Adelaide||Perth|
|Most Suburbs (Count)||Perth||38||85||78||113|
|Most Listings Available (Count)||Perth||2420||2128||886||3469|
|Most House Options (Count of Suburb with Houses)||Perth||0||5||35||51|
|Best Median Yield (Median)||Perth||4.7%||5.1%||4.5%||5.2%|
|Best Vacancy Rate (Median)||Adelaide||1.70%||0.90%||0.67%||0.71%|
|Best Rental Affordability (Median)||Brisbane||31.49%||26.40%||31.70%||29.09%|
|Highest Income (Median)||Brisbane||$1,964||$2,041||$1,487||$1,723|
|Closest to CBD (Median)||Brisbane||11.0km||6.7km||9.0km||9.1km|
|Fully Owned (Median)||Perth||19.97%||22.48%||26.60%||26.94%|
|Highest Socio-Economic Ranking (Median)||Sydney & Brisbane||10||10||6||7|
|3 Month Price Growth (Median)||Perth||-0.20%||0.17%||0.73%||0.96%|
|6 Month Price Growth (Median)||Adelaide||-1.07%||0.97%||1.05%||0.00%|
|Inventory Level - Now (Median)||Adelaide||3.49||1.97||1.51||2.63|
|Inventory Level - 3M Change (Median)||Adelaide||0.00||-0.10||-0.25||-0.22|
Perth an investor hotspot
Recent growth in the mining and resources sectors has contributed to Perth’s economic resilience, attracting both national and international interest in its real estate.
The positive three-month price growth of 0.96 per cent further highlights the city’s potential for both short-term gains and long-term investment opportunities.
Overall, Perth’s robust performance across various property market indicators, coupled with its unique geographical appeal and strong economic foundations, positions it as a standout choice for those looking to engage in the Australian real estate market.
A shortage of greenfield land and predicted 20,000 home shortfall is only adding to the upwards price pressure.
Whether for investment or residence, Perth offers a compelling blend of opportunity and lifestyle that resonates with a diverse range of property seekers.
Perth’s top three suburbs for investors with a budget of $750,000 were all houses, as opposed to units.
St James (houses): Located 7km from Perth’s CBD in the South East region, St James offers houses at a median price of $624,685 and rental median of $540, yielding 4.34%.
With only 4.09% detached houses, it’s a focused market for house investors. Rent affordability is 29.56%, and the average weekly household income is $1,827.
St James’ proximity to the city and emphasis on traditional housing make it an appealling investment ground.
Parkwood (houses): Just 12km from Perth's CBD in the South East region, Parkwood features houses at a median price of $589,000 and rental median of $500. The yield is 4.33%, with 5.04% detached houses, offering classic investment opportunities.
Rent affordability is 31.27%, and the average weekly household income is $1,599. A family household percentage of 73% contribute to its community charm. Parkwood's well-balanced property types and socio-economic factors make it an attractive option for investors.
Greenwood (houses): Situated 15km from Perth's CBD in the North West region, Greenwood offers houses at a median price of $635,126 and rental median of $560. With a yield of 4.47% and only 0.16% detached houses, it’s a concentrated market for house investors.
Top 3 Sydney suburbs
Homebush West (units): Located 13km from Sydney’s CBD in the Inner West region, Homebush West offers a robust market primarily for unit investments. With 62 units available for sale at a median price of $599,400, and a rental median of $550 per week, the suburb provides a yield of 4.77%.
Remarkably, detached houses constitute 93.05% of the property type, reflecting a broader housing diversity. A rent affordability of 28.18% and average weekly household income of $1,952 underline the financial landscape of the suburb. The socio-economic ranking of 7 and a high percentage of family households at 66.56% indicate a well-rooted community, catering to diverse resident profiles.
Rockdale (units): Rockdale, 11km from Sydney’s CBD in the Inner South West region, features units as the main property type, with 85 units available at a median list price of $634,950 and rental median of $570.
The yield stands at 4.74%, and detached houses make up 71.05% of properties, offering investment variety. The rent affordability is 29.91%, and the average weekly household income is $1,906. A socio-economic ranking of 7 and family household percentage of 66.61% add to Rockdale's appeal.
Meadowbank (units): Situated 12km from Sydney’s CBD in the Ryde region, Meadowbank provides an enticing market for units, with 40 available at a median price of $680,000 and rental median of $550. The yield of 4.73% and an overwhelmingly high percentage of detached houses at 97.04% signal opportunities for diverse investments.
Top 3 Brisbane suburbs
Gordon Park (units): Gordon Park, 6km from Brisbane's CBD in the North region, offers units at a median price of $434,461 and rental median of $450. With a substantial yield of 5.44% and 32.85% detached houses, it presents a rich property landscape. The rent affordability of 20.33% and a robust average weekly household income of $2,213 illustrate the suburb's economic profile.
The socioeconomic ranking of 10 and a family household percentage of 66.32% reflect a thriving community.
Kedron (units): Kedron, 7km from Brisbane’s CBD in the North region, showcases units with a median price of $464,600 and rental median of $460. The yield of 5.20% and 30.04% detached houses provide a blend of investment possibilities.
A socio-economic ranking of 10 and a family household percentage of 64.34% contribute to Kedron's community appeal. The blend of location, property types, and socio-economic factors make Kedron a sought-after area for investors.
Coorparoo (units): Located 5km from Brisbane's CBD in the South region, offers units at a median price of $535,300 and rental median of $500. The yield is 5.05%, and 50.01% of properties are detached houses, offering diverse investment options.
Rent affordability is 23.75%, with an average weekly household income of $2,105. The socio-economic ranking of 10 and a family household percentage of 59.22% underline Coorparoo's community strengths.
Top 3 Adelaide suburbs
Mawson Lakes (units): Mawson Lakes, 13km from Adelaide's CBD in the North region, offers units at a median price of $375,000 and rental median of $420. With a yield of 6.07% and 15.03% detached houses, it presents diverse investment opportunities.
Mawson Lakes’ blend of location, property types, and socio-economic factors make it an enticing investment locale.
Parkside (units): Situated 2km from Adelaide's CBD in the Central and Hills region, Parkside offers units at a median price of $485,000 and rental median of $490. The yield is 5.96%, with 18.83% detached houses, attracting investors seeking both growth and income.
A socio-economic ranking of 10 and a family household percentage of 64.47% add to Parkside's appeal. Its close proximity to the city and balanced property offerings make it a desirable investment hub.
Lightsview (houses): Lightsview, 8km from Adelaide’s CBD in the North region, stands out with houses as the property type. The median price is $630,000, and the rental median is $540, yielding 4.53%.
With 8.86% detached houses, it provides diversity in investment options. The socio-economic ranking of 9 and a family household percentage of 64.83% create a thriving community. Lightsview’s blend of location, housing diversity, and socio-economic factors make it a prime investment destination.