New study determines the top 200 Aussie Suburbs for real estate investments – realestate.com.au

Do you want to invest in real estate? There are two states full of excellent opportunities, according to an exclusive new prophet report.

Qld and WA have dominated a list of the 200 best suburbs in Australia for investors, based on rental efficiency, 12 months of value growth and the number of days that needs vacant rental properties on average.

QLD had almost half of the suburbs on the list of 98 in total, while WA 72 had. It then became daylight in third place, followed by South Australia with 17, NSW (seven), the NT (four) and Vic (two).

MORE:Queensland’s Top 20 Investor Suburbs

The number one place went to Spalding in WA, where a median priced house cost $ 398,000, came with a rental yield of 7 percent, had grown in value in value last year and could be rented on the market after an average of 22 days.

Rockhampton City, Qld was the next best, with 35 percent annual growth that brought the median of the house to $ 375,000, while on average real estate was rented after 18 days and yielded a gross yield of 6 percent.

Rea Group Senior Economist Angus Moore said that regional, or suburbs of the suburbs were the strongest in the data.

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“It’s not universal, but it’s a theme,” said Moore. “One, regional areas often have higher rental yields. And two, those areas have also seen stronger price growth in the last 12 months, but you could even expand that to the past five years. That kind of more affordable, more remote areas have seen strong growth since 2020 since 2020, and therefore they appear in these types of lists.”

West -Australia was prominent on the list.

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Moore noted that regional and city edge of suburbs “often have thinner rental markets”.

“There is simply not as much supply and availability as the city center, where you have a deeper rental market that can historically bring a risk that property is empty, and so you see higher yields to compensate,” he said.

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“That has not been true in recent years, where regional rental markets have seen extremely tight circumstances. We have also seen a very strong demand for regional and outer suburbs, both to rent and to buy, and that is much increased in those areas.”

Why Qld and WA dominate the list

Moore said that the growth of QLD and WA markets contributes to the large number of suburbs on the list in the past year.

“Regional Queensland is still solid, even if growth is slower this year and they are also extremely tight rental markets,” he said. “These areas have seen extremely low rental reports and proportionally very strong growth in rental prices during that period. So that continues to make it attractive for investors.”

Moore added that the Interstate migration had favored some states, with families who are priced from NSW and Victoria is largely on their way to QLD.

“There is not many opportunities in NSW and Victoria compared to the other states on this list. That does not mean that there are no good opportunities for investors in those states, but certainly compared to those smaller states and smaller capitals, Sydney and Melbourne have not played so well.”

MORE: Victoria’s Top 20 Investor Suburbs

Angus Moore said that regional and outer suburbs dominated the list.

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What the data may not tell you

The prophnection report is only based on data and Moore warned that extra dedication would be necessary before he invests at a location.

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Some entries on the list, such as Rochester, Vic (who is third) and Lismore, NSW (27th) have been destroyed by floods or other disasters.

“Another reservation is the regions of WA and QLD those that are mine areas,” said Moore. “These can be quite volatile markets because they depend on the circumstances in the mining sector, and that has seen some volatility in the past.

“Investors must go into and understand the area and what it has driven, to find out if it will continue, because locally specific factors will be very important, such as new builds, or people go to the area of ​​other states, large construction projects, changes in local labor markets and employers.”