Best Places to Invest in Australia: Real Estate
Market Reports 2024
Written by: Neelam Shahzadi
Reviewed by: Majid Hussain
Little Real Estate recently released its annual report that unveils the top investment locations in 2024 across Australia. The report considers factors such as median sales, rental prices, lifestyle, and rental yield in each suburb.
From Sydney’s eastern suburbs to regional Queensland, the report highlights the ones expected to experience surging property prices in 2024, as per housing demand. Here are the top investment locations across Australia according to the report.
Best Places to Invest in Australia 2024
Australia offers a dynamic and diverse landscape for real estate investors, with several hotspots emerging as prime investment locations. Take, for instance, Melbourne’s cultural hubs and Sydney’s eastern suburbs that stand out for their robust rental markets and capital growth potential. Brisbane’s expanding suburbs and the Gold Coast offer promising opportunities for those looking at potential growth areas, thanks to their increasing population and infrastructure development.
Tasmania’s Hobart remains attractive due to its unique blend of lifestyle and affordability. Meanwhile, in Western Australia, Perth’s real estate market shows signs of strong recovery, making it an interesting option for investors looking for value. Additionally, regional areas in Queensland and New South Wales are gaining popularity for their higher rental yields and lower entry points, making them excellent choices for investors aiming to diversify their portfolios across Australia’s vast landscape.
Here are some good places to invest in real estate in Australia, in detail.
NEW SOUTH WALES
1. KENSINGTON
Kensington has become a popular suburb in Eastern Sydney due to its proximity to the CBD and beaches. Little Real Estate mentioned it was the top-performing Sydney suburb for rent growth in 2023.
They also highlight the new light rail service significantly improving the suburb’s connectivity. This has reduced commute times to the city, making it more appealing to professionals and families.
For units, the suburb offers a rental yield of 4.2%, a median unit price of $940,000, and a remarkable 24.9% rent growth over the past year.
2. WILEY PARK
Wiley Park is a suburb in Greater Sydney region that has experienced the second strongest 12-month rent growth among all capital cities in the country. Despite this growth, the median property value in Wiley Park remains relatively affordable at $450,756, making it the seventh most affordable suburb in the region. Additionally, the suburb offers a high rental yield of 6.1 per cent, the third of the region’s highest.
3. EDMONDSON PARK
Edmondson Park is a suburb southwest of Sydney that has recently emerged as a long-term growth market. Due to significant developments in the area, the suburb is experiencing a population boom and rapid gentrification.
The rental returns in this suburb are above average for Sydney. Houses offer a gross yield of 3.4 percent and a median weekly rent of $730. Alternatively, units have a median price of $610,000 and a gross rental yield of 4.6 percent.
VICTORIA
1. CARLTON
The Melbourne suburb Carlton, located on the north side, is known for several reasons. Its unit rental yield is one of the highest in inner Melbourne, at 7.2 per cent. This is mainly due to its proximity to Melbourne University and the medical precinct, which attracts a steady flow of students and healthcare professionals.
According to Prop Track data, Carlton’s median unit price has decreased by 15.6 per cent in the last 12 months, currently at $400,000. The suburb has a diverse range of residents thanks to its wide array of housing options, including Victorian terraces, public housing, student accommodations, and high-end multi-unit townhouses and apartments.
2. MOONEE PONDS
Moonee Ponds is a suburb just 6km from Melbourne’s CBD, making it ideal for those seeking an inner-city lifestyle. The median property prices range from $1.5m for houses to $490,000 for units. Units in the area are typically rented out for around $460 per week and yield 5.3 per cent.
Over the past year, rental prices in Moonee Ponds have increased 11.6 per cent for houses and 15 per cent for units. The median time on the market for properties in the area is 17 days.
3. POINT COOK
Over the past year, rental prices for houses in Point Cook, located in Melbourne’s Southwest, have significantly increased by 16.3%, with a weekly median rental price of $500. Similarly, units have experienced significant growth with a 12% increase per year, renting out at around $420 per week. The median sale price for units in Point Cook is $489,000. Point Cook is considered a family-friendly suburb, with many lifestyle amenities available for residents.
QUEENSLAND
1. BULIMBA
Bulimba, located just 4.1km from Brisbane’s CBD in Queensland, is considered a premier lifestyle suburb. It is known for its leafy streets and proximity to cafes and shops along the Brisbane River. While house prices dropped by 7.5% over the year, unit prices increased by 5.6%. The median price for a house in Bulimba is $805,000, and the rental prices for units have jumped by 14.1%, with a rental yield of 4.6%.
2. CALOUNDRA WEST
The beachside suburb of Caloundra West is rapidly gaining popularity among families, professionals, and retirees. This is due to its well-maintained parks, convenience to daily needs, efficient public transport links, and easy access to the Bruce Highway.
If you want to buy a property in the area, it is worth knowing that houses in Caloundra West have a median price of $755,000, while units are priced at $625,000. Over the last 12 months, both properties have seen a 6 per cent increase in value.
The market is equally strong if you are looking to rent. Houses in Caloundra West have seen a 91 per cent increase in rent prices over the last ten years, with a rental yield of 4.5 per cent.
3. SOUTHPORT
Southport, located in the heart of Gold Coast’s CBD, is a bustling hub of shopping, dining, and business. The suburb is home to the renowned Australia Fair shopping centre, Griffith University, and an array of public and private schools, making it an attractive location for families and students.
The rental market in Southport is thriving. Houses have experienced a 115 per cent 10-year price growth and a 4.4 per cent rental yield, while units offer a 5.9 per
cent yield.
4. COOMERA
This Gold Coast suburb, Coomera, has experienced healthy growth over the past year and has a diverse community. It is particularly popular with families, with the median price for units rising over 9% in the past year. The median unit price is now $540,000, offering a 5.6% rental yield. The house rental market is also strong, with an average weekly rent of $680 and a 4.8% yield. Coomera’s significant population growth and many parks and open spaces make it an attractive location for families and investors in 2024.
Frequently Asked Questions
Little Real Estate’s 2024 report lists prime investment locations in Australia, including Sydney’s east, Melbourne’s cultural hubs, Brisbane and Gold Coast’s expanding regions, Hobart for lifestyle and affordability, Perth for market recovery, and regional areas in QLD and NSW for high rental yields.
Little Real Estate’s report identifies top investment locations in Australia for 2024, highlighting suburbs in Sydney, Melbourne, Brisbane, the Gold Coast, Hobart, Perth, and regional areas of Queensland and New South Wales for their potential in rental yield and property price growth.
Wiley Park stands out for its 12-month rent growth, offering a 6.1% yield with a median value of $450,756; Edmondson Park is noted for growth potential and yield of 3.4% for houses and 4.6% for units.
Conclusion
The best places to invest in Australia present a unique blend of lifestyle, affordability, and growth potential, from the bustling urban centres of Sydney and Melbourne to the emerging markets in regional areas. For those ready to dive into the Australian real estate market is your ideal partner. With our expert insights and comprehensive services, we can help you navigate the complexities of the market, identify promising opportunities, and make informed decisions today to ensure successful investment in Australia’s vibrant real estate landscape.
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