Top locations in Australia for property investment in 2025

Property remains one of Australia's favourite investment vehicles, but choosing the right location can make all the difference. So, where should you look in 2025?

We've delved into the hottest property investment hotspots across the country, backed by the latest data, expert insights, and market trends.

Whether you're after high rental yields, capital growth potential, or affordable entry points, this list has something for every investor.

What's going on with Australia's property market in 2025?

The number of homes being sold in Australia increased 8% year-on-year in 2024, even with elevated interest rates.

Nationally, 528,000 homes changed hands in the 12 months to November, with home values rising 5.5% to record a median price of $812,933.

But 2024's early housing market strength slowed towards the end of the year as an anticipated Reserve Bank cash rate cut failed to materialise and the two largest capital city markets - Sydney and Melbourne - lost ground.

Indeed, Australian residential property proved a two-speed market in 2024, bookended by Melbourne's 3% decline and Perth's 19% rise.

Here's how capital city property prices have been performing around the country, courtesy of CoreLogic as at 31 December 2024:

Location	Change in values - Quarter	Change in values - Year to 30 November	Median value
Sydney	-1.4%	2.3%	$1,191,955
Melbourne	-1.8%	-3.0%	$774,093
Brisbane	1.3%	11.2%	$890,746
Adelaide	2.1%	13.1%	$814,430
Perth	1.9%	19.1%	$813,016
Hobart	0.0%	-0.6%	$651,043
Darwin	0.6%	0.8%	$496,871
Canberra	-0.3%	-0.4%	$844,277
Australia wide	-0.1%	4.9%	$814,837

Rental market slowing

Rent values in Australia also remained high in 2024, although growth rates slowed to 5.3% in the year to November - down from 8.1% over the previous year and the peak of 9.6% in the 12 months to September 2022.

Perth's unit sector recorded the highest annual rate of rent growth of the capital cities at 9.7%, but that marked a slowdown from 16.6% a year earlier. Perth also recorded the highest annual growth in house rents at 8.7%.

CoreLogic head of research Eliza Owen said slowing rental growth could be attributed to cost of living pressures and reduced net overseas migration which contributed to past rental property shortages.

Gross rental yields also firmed at 3.6% nationally, with Darwin the only capital city to see rental yield - at 6.8% - on a par with the average variable investor home loan rate of 6.6% on existing loans.

Investor activity jumps

Yet, this didn't seem to dampen the enthusiasm of property investors.

New investor lending was up 29.5% by value over the previous year, according to Australian Bureau of Statistics data for September 2024, far outpacing owner-occupier lending growth at 13.1%.

At one point in 2024, investors accounted for 38.3% of all new home loans being written in Australia - the highest level since 2017.

Perhaps unsurprisingly, the growth in investor lending was concentrated in high capital growth areas - Queensland, Western Australia, and the perennial New South Wales.

Victoria and Tasmania saw much lower levels of investor lending, and Victoria also saw a glut of investment properties returned to market for sale.

CoreLogic data found listings of previous investment properties in Victoria accounted for 29% of the national figure in October - up 10.6% on the state's previous five-year average.

What could 2025 hold for property investors?

So, what might property investors expect for 2025?

Markets are widely preparing for a mid-year cut to the Reserve Bank cash rate, expected to put a floor under prices in falling markets and spur those in rising markets higher.

Domain's chief of research and economics Nicola Powell said she expects 2025 to be a year of two halves for the housing market.

"I think rate cuts will shape 2025, [in terms of] borrowing capacities and the actual confirmation that finally inflation is under control," Dr Powell told Your Mortgage.

"That's going to provide clarity for many.

"I think there will be a sigh of relief across Australia when we see that rate reduction actually come through and delivered, and I think it will influence people's decisions.

"I think some people [have been] holding off their decisions to buy and sell, and that impacts investor decisions also."

When the cash rate drops, investors can likely expect more competition in the market from owner-occupiers who have been holding off for lower interest rates and boosted borrowing capacity.

Any rise in owner-occupier and first home buyer activity could also lead to a drop in rental demand as new purchasers move into their own homes.

'Mortgage wars' round two?

Some financial market commentators are speculating cuts to the cash rate may also spark another round of the so-called 'mortgage wars'.

A revived housing sector could trigger another period of intense competition among mortgage providers, such as the market saw in mid-2023 when banks and non-bank lenders jockeyed for market share as many Australians rolled off low fixed home loan rates.

This competition saw lenders undercutting each other's interest rates and offering cashbacks and promotional deals to entice refinancing homeowners and investors.

Investors looking to purchase additional properties or refinance to access built-up equity in their existing properties would do well to keep an eye out for competitive rates and deals.

Hot investment home loans available now

For those wanting a head start on what promises to be a rejuvenated housing market, the table below features some of the most competitive investor home loans available right now.

Important Information and Comparison Rate Warning

Investment property hotspots: Where to look in 2025

As always, savvy investors will be looking to invest in properties promising excellent capital growth as well as solid rental yields.

The trick is picking the hotspots before the rest of the market cottons on.

The marketplace is flush with data and analysts seeking to do just that, but sometimes there's nothing like hearing from people at the coalface.

Your Mortgage reached out to experts for their takes on the top investment hotspots for 2025. Here are their answers.

Data courtesy of CoreLogic as at the end of September quarter 2024 (released in December 2024).

Where to invest in New South Wales 2025

Dulwich Hill, Sydney

The inner-western Sydney suburb of Dulwich Hill is first pick of not one but two property experts for 2025 and therefore takes top billing.

As Australian property identity John McGrath says in his 2025 Report, when "the light rail makes it a short tram ride in the CBD, you can no longer resist the attractiveness of these little sleeper villages".

In recent years, Dulwich Hill has undergone considerable gentrification - or gets "groovier and groovier" as Mr McGrath puts it - with a proliferation of coffee shops, cafes, casual eateries, and restaurants.

Founder of Aus Property Professionals and 2024 Real Estate Institute of NSW buyers' agent of the year Lloyd Edge also likes Dulwich Hill for its family orientation and spaciousness compared to neighbouring suburbs.

Dulwich Hill features Federation and interwar era houses as well as what looks set to be a growing stock of apartments, having been earmarked by the NSW government for increased medium-density development.

	Units	Houses
Median Price	$940,000	$2,270,000
Weekly Median Rent	$650	$885
Gross Rental Yield	4%	2%
Quarterly Growth	3%	0%
12 Month Growth	15%	9%
5 Year Growth	35%	54%

Long Jetty, Central Coast

Another emerging hotspot earmarked by two property experts - Mr McGrath and Spring Buyers Agency co-founder Linda Johnson - is Long Jetty, also nominated as one of Australia's 'Hot 100 Suburbs' for 2025, as per realestate.com.au.

Mr McGrath said this once "somewhat unfashionable" suburb is offering some of the best value on the East Coast.

Long Jetty is picking up the overflow of buyers priced out of other popular beachside suburbs between Killcare and Wamberal on the Central Coast, according to Ms Johnson.

It's a commutable distance between Sydney and Newcastle, on the Central Coast and Newcastle train line, and emerging as a vibrant hub offering cafes, bars, arts, and culture while still being an affordable beachside suburb.

	Units	Houses
Median Price	$650,000	$1,285,000
Weekly Median Rent	$500	$580
Gross Rental Yield	4%	2%
Quarterly Growth	-4%	3%
12 Month Growth	-13%	-8%
5 Year Growth	49%	92%

Mudgee, Mid-Western NSW

Mr Edge earmarked the central western NSW town as a good place for long-term investors to consider.

Mudgee has a vibrant food and wine scene and has been a popular choice for tree changers moving from the city to more affordable, desirable locations.

"In the past 10 years, the rental trends in Mudgee have been rising, as has the median price for houses, which has now reached $680,000.

"The average gross rental yield is around 5%, which isn't as large as what you'd receive in some regional centres, but given the population has been rising and the average annual growth rate of house prices over the past 10 years is 10.12%, you might find yourself a good and relatively stable long-term investment."

	Units	Houses
Median Price	$510,000	$680,000
Weekly Median Rent	$420	$570
Gross Rental Yield	4%	4%
Quarterly Growth	0%	0%
12 Month Growth	1%	-3%
5 Year Growth	78%	60%

Where to invest in Victoria 2025

Keilor East, Melbourne

This northwestern suburb, situated 13 kilometres from Melbourne's CBD and neighbouring Melbourne's airport, is Mr McGrath's top Victorian pick.

He cites the upcoming addition of a new train station as part of the Melbourne Airport Link as a boon to the suburb.

He also likes its relative affordability compared to its more fashionable neighbour Essendon, where the median house price is around $800,000 higher.

	Units	Houses
Median Price	$780,000	$1,020,000
Weekly Median Advertised Rent	$580	$580
Gross Rental Yield	4%	3%
Quarterly Growth	0%	1%
12 Month Growth	-1%	6%
3 Year Growth	6%	11%
5 Year Growth	25%	24%

Deer Park, Melbourne

The middle-ring suburb, 17 kilometres west of the Melbourne CBD, offers good affordability and is the number one tip of National Property Buyers' (Victoria) director Antony Bucello.

"There's a strong selection of suburbs in Melbourne's northern and western middle-ring areas that offer promising potential for long-term growth, supported by healthy rental yields, provided you get the purchase right," he told Your Mortgage.

"Deer Park provides excellent transport options via road or public transport and some well-positioned townhouses and units could give a potential rental yield of 4.5%."

	Units	Houses
Median Price	$590,000	$650,000
Weekly Median Advertised Rent	$430	$460
Gross Rental Yield	4%	4%
Quarterly Growth	0%	0%
12 Month Growth	2%	2%
3 Year Growth	5%	5%
5 Year Growth	10%	19%

Bairnsdale, East Gippsland

If you're looking for a higher yield investment, Harcourt Group CEO Adrian Knowles nominated the regional town of Bairnsdale among realestate.com.au's 'Hot 100 Suburbs' for 2025.

The town is about three-and-a-half hours' drive from Melbourne and is a gateway to the Gippsland Lakes as well as Victorian ski destination Mt Hotham.

Bairnsdale is the commercial centre of local agricultural industries and has seen a recent strong increase in rental demand, according to Mr Knowles.

	Houses
Median Price	$425,000
Weekly Median Advertised Rent	$430
Gross Rental Yield	5%
Quarterly Growth	0%
12 Month Growth	-4%
3 Year Growth	25%
5 Year Growth	57%

Where to invest in Queensland 2025

Townsville

Townsville was top of the list of Your Mortgage investment hotspots last year and the North Queensland city remains in place this year.

Townsville has a relatively affordable median house price of between $400,000 to $500,000 depending on where you buy, and some property experts predict prices will rise by around 50% over the next three years.

The city's economy is growing, boosted by a significant military presence (Townsville is home to the largest army base in Australia), and Townsville has seen considerable investment and gentrification in recent years.

Ray White group's head of performance and recognition Bianca Denham nominated the suburb of Kirwan, about 10 kilometres from Townsville's city centre, for realestate.com.au's 'Hot 100 Suburbs' for 2025.

She said sales activity in the suburb has been in overdrive, with the eastern part of Kirwan an attractive option for investors looking to capitalise on its thriving market. (The table below features data for Kirwan.)

	Units	Houses
Median Price	$350,000	$476,500
Weekly Median Advertised Rent	$380	$500
Gross Rental Yield	6%	5%
Quarterly Growth	19%	7%
12 Month Growth	37%	24%
3 Year Growth	25%	44%
5 Year Growth	77%	54%

Ferny Hills, Brisbane

This northwestern Brisbane suburb has been nominated by two of our property experts: Streamline Property Buyers managing director Melinda Jennison and MCG Quantity Surveyors which releases a handpicked list of national 'Suburbs to Watch' each year.

Ferny Hills, around 15 kilometres from the Brisbane CBD, is a suburb known for green spaces and easy access to bushland and walking trails while still having good connection to Brisbane via the nearby Ferny Grove train station, according to Ms Jennison.

MCG managing director Mike Mortlock said the suburb, made up of 95% houses, still offers affordability with prices jumping over the past three months while supply has dropped.

He believes the suburb offers good capital growth opportunities. (The table below shows data for houses only as unit stock is limited.)

	Houses
Median Price	$950,000
Weekly Median Advertised Rent	$650
Gross Rental Yield	4%
Quarterly Growth	3%
12 Month Growth	12%
3 Year Growth	36%
5 Year Growth	67%

Ipswich

The city of Ipswich, located to the west of Brisbane, is another hotspot nominated by a couple of our property experts, although they point out it's important to buy in the right pockets.

National Property Buyers Brisbane director Stephen McGee likes the western suburbs of Coalfalls, Sadliers Crossing, Leichhardt, and One Mile.

He said prices have already started to increase "dramatically" over the past two to three years, with all offering rental yields between 4.2 and 5%.

"The benefit of these areas is that they're all established areas, so schools, shops, leisure, and transport is already there, as opposed to some perhaps younger areas that are time-planned for the infrastructure to arrive later," Mr McGee said.

Meantime, Mr McGrath has nominated North Ipswich as one to watch for 2025. (The table below features data for houses only in North Ipswich.)

	Houses
Median Price	$610,000
Weekly Median Advertised Rent	$480
Gross Rental Yield	4%
Quarterly Growth	4%
12 Month Growth	34%
3 Year Growth	76%
5 Year Growth	98%

Where to invest in South Australia 2025

Christies Beach, Adelaide

Christies Beach is nominated by two of our Adelaide property experts, National Property Buyers (South Australia) director Kathleen Skinner and University of Adelaide property academic and property investment consultant Peter Koulizos.

The seaside suburb has also made realestate.com.au's 'Hottest 100 Suburbs' for 2025, if you need any more convincing.

According to Mr Koulizos, Christies Beach, about 30 minutes' drive south of Adelaide, is undervalued given its location and "great" capital growth prospects.

Ms Skinner also points out it's set to benefit from a major project to improve open space access along the coastline in the area.

She said there is considerable development potential in the suburb and a strong rental yield of around 4%.

	Units	Houses
Median Price	$560,000	$662,000
Weekly Median Advertised Rent	$500	$545
Gross Rental Yield	5%	4%
Quarterly Growth	3%	6%
12 Month Growth	7%	17%
5 Year Growth	60%	74%

Paralowie, Adelaide

While Adelaide's property prices have been on a tear the past couple of years, some of the city's more affordable northern suburbs have recorded phenomenal growth.

Elizabeth South recorded the fastest rise of all Australian suburbs with the median house price doubling in just over two years.

Paralowie, nominated by Ms Skinner, is a northern suburb that's also seeing significant capital growth as well as demographic changes and ongoing demand given its relative affordability.

Ms Skinner said it offers "bang for the buck" for those with lower budgets and with rental yields achieving 4.5% or more, investors are increasingly being attracted to the suburb.

	Units	Houses
Median Price	$386,500	$620,250
Weekly Median Advertised Rent	$400	$530
Gross Rental Yield	5%	4%
Quarterly Growth	3%	7%
12 Month Growth	4%	24%
5 Year Growth	81%	100%

Port Lincoln, Lower Eyre Peninsula

Best known for its fishing industry, Port Lincoln has been nominated as one of Australia's 'Hottest 100 Suburbs' for 2025 by Propertyology managing director Simon Pressley.

The coastal city is a popular holiday destination for South Australians and home to the country's largest commercial fishing fleet where homes remain relatively affordable, according to Mr Pressley.

He noted the current volume of properties listed for sale is only one-third of normal levels, indicating the strong local property market could get more heated in 2025.

	Units	Houses
Median Price	$317,500	$450,000
Weekly Median Advertised Rent	$360	$500
Gross Rental Yield	6%	5%
Quarterly Growth	-7%	0%
12 Month Growth	-5%	10%
5 Year Growth	34%	55%

Where to invest in Western Australia 2025

Victoria Park, Perth

So many experts nominated Victoria Park - and neighbouring East Victoria Park - that it takes top billing for Western Australia's property hotspots.

Resolve Property Solutions head buying agent Peter Gavalas said the inner-southern suburb has seen a more modest median price rise than other parts of the city, making it a prime pick.

"It's close to the city and amenities, close to the river, has great public transport options, and is a gentrifying suburb," he told Your Mortgage.

East Victoria Park also made realestate.com.au's national 'Hottest 100 Suburbs' list for 2025, nominated by both Adelaide University property academic Peter Koulizos and LJ Hooker head of research, economics, and business intelligence Mathew Tiller.

	Units	Houses
Median Price	$432,000	$890,000
Weekly Median Advertised Rent	$575	$773
Gross Rental Yield	7%	5%
Quarterly Growth	5%	2%
12 Month Growth	16%	12%
5 Year Growth	11%	47%

Redcliffe, Perth

Momentum Wealth managing director and former Real Estate Institute of Western Australia president Damian Collins said Redcliffe's appeal is "undeniable".

The suburb, located next to Perth International Airport, is a mix of residential, semi-industrial, and retail properties and is a short walk from the Swan River.

Mr Collins said investors are already eyeing Redcliffe's potential, given the ongoing redevelopment of Perth Airport and the opening of the Redcliffe train station in 2022.

	Units	Houses
Median Price	$340,000	$682,500
Weekly Median Advertised Rent	$575	$650
Gross Rental Yield	7%	5%
Quarterly Growth	3%	9%
12 Month Growth	6%	24%
5 Year Growth	-	59%

Geraldton

Two experts like the regional town of Geraldton, which made realestate.com.au's national 'Hottest 100 Suburbs' for 2025.

Geraldton is WA's largest city north of Perth, about a four-hour drive away from the capital, and Mr Pressley likes the town's "very affordable" house prices.

Ray White Group head of performance and recognition Bianca Denham said Geraldton offers a relaxed, coastal lifestyle with a strong economy, driven by mining, seafood, and agriculture.

Geraldton is home to a number of suburbs and outlying areas, but most of the real estate activity takes place in the heart of Geraldton with its mix of older weatherboard homes, newer brick houses, and vacant blocks.

	Units	Houses
Median Price	$265,500	$381,875
Weekly Median Advertised Rent	$310	$450
Gross Rental Yield	6%	6%
Quarterly Growth	2%	8%
12 Month Growth	17%	23%
5 Year Growth	-39%	91%

Where to invest in Tasmania 2025

Glenorchy, Hobart

The riverside suburb, not far from Hobart's well-known Museum of Old and New Art (MONA), has made this year's realestate.com.au's 'Hot 100 Suburbs', nominated by 2024 Real Estate Institute of Australia buyers' agent of the year Samantha Spilsbury of Buyers Agents Tasmania.

Ms Spilsbury said the affordable and well-located suburb, just 13 minutes from Hobart's CBD, offers substantial rental yields for both houses and units.

Currently, around 45% of homes in the suburb are occupied by renters.

	Units	Houses
Median Price	$447,500	$552,500
Weekly Median Advertised Rent	$440	$510
Gross Rental Yield	5%	5%
Quarterly Growth	2%	-1%
12 Month Growth	-1%	-4%
5 Year Growth	54%	45%

New Norfolk

This historic settlement in the Derwent Valley, around 35 kilometres north-east of the Hobart CBD, has been earmarked for its relative affordability and rental yields.

Investorkit senior analyst Junge Ma notes the area's median house price of $463,000 is around two-thirds of that of Hobart.

New Norfolk's unit prices also saw a considerable decline during 2024, making them around 22% less than the current Hobart median for units.

However, Ms Ma said a tight rental market and low vacancy rate of just 0.3% have created strong rental yields in the suburb.

	Units	Houses
Median Price	$425,000	$460,000
Weekly Median Advertised Rent	$383	$453
Gross Rental Yield	5%	5%
Quarterly Growth	-5%	-4%
12 Month Growth	-12%	-2%
5 Year Growth	72%	72%

Devonport

Nominated by Ms Spilsbury and Mr Tiller, Tasmania's third largest city, Devonport, also made realestate.com.au's 'Hot 100 Suburbs' list for 2025.

Ms Spilsbury said the city is benefiting from the ongoing development of the new Spirit of Tasmania ferry terminal which is driving local employment opportunities and infrastructure improvements.

The delayed project, which will provide new permanent berths for larger vessels, is expected to be completed in late 2026 or early 2027, improving connectivity with the Australian mainland and boosting tourism and trade.

Mr Tiller said other infrastructure projects under Devonport's Living City redevelopment program are also driving housing demand.

He said the city's affordable property prices and strong rental potential make it a key area for investors.

	Units	Houses
Median Price	$400,000	$470,000
Weekly Median Advertised Rent	$350	$420
Gross Rental Yield	5%	5%
Quarterly Growth	2%	1%
12 Month Growth	-2%	2%
5 Year Growth	57%	71%

Where to invest in the Australian Capital Territory 2025

Macarthur

While the ACT property market has seen a slowdown in 2024, Ms Ma said investors should be focused on the Tuggeranong region to the south of Canberra.

"House prices [there] remain relatively affordable and show strong resilience against the challenges of high interest rates," she told Your Mortgage.

She singled out the suburb of Macarthur where house prices grew 8.5% in 2024, well above the ACT average of just 0.7%.

Ms Ma said the area's supply-demand dynamic also indicates prices could continue to grow next year given there are "extremely low" levels of stock on the market.

	Houses
Median Price	$962,500
Weekly Median Advertised Rent	n/a
Gross Rental Yield	n/a
Quarterly Growth	2%
12 Month Growth	7%
5 Year Growth	39%

Holt

Hello Haus property analyst Sam Powell picked the suburb of Holt in the Belconnen district, where property prices held their own in 2024.

Holt's house prices rose 3% while unit prices jumped an eye-catching 15.4%, according to Mr Powell's data.

The suburb borders open farm and bushland and is a short distance from the Molongolo River.

"Holt has strong socioeconomic indicators and low supply levels may drive appreciation [in 2025]," Mr Powell said.

	Units	Houses
Median Price	$647,500	$761,000
Weekly Median Advertised Rent	$350	$420
Gross Rental Yield	4%	4%
Quarterly Growth	3%	-1%
12 Month Growth	14%	-1%
5 Year Growth	70%	46%

Where to invest in the Northern Territory 2025

Rapid Creek, Darwin

The Northern Territory is known in Australian property investment circles for its comparatively high rental yields, although this is often coupled with lower capital growth.

For investors interested in high yields, Belinda Tennant, principal of buyers' agent and property management company Thrive Property NT, recommends the Darwin suburb of Rapid Creek, where the creek of the same name meets Darwin Harbour.

Rapid Creek is next door to sister suburb Nightcliff, well known for its foreshore walk, beach, markets, and swimming pool.

"As well as the lifestyle amenities, it's also about 10-15 minutes from Darwin's hospital and health precinct so there are a lot of medical staff looking to rent homes there," Ms Tennant said.

	Units	Houses
Median Price	$410,000	$765,000
Weekly Median Advertised Rent	$485	$600
Gross Rental Yield	6%	4%
Quarterly Growth	-3%	-5%
12 Month Growth	-1%	9%
5 Year Growth	18%	20%

Fannie Bay, Darwin

Ms Tennant also nominates the more expensive waterfront suburb of Fannie Bay for its good yields.

Fannie Bay is closer to the city and home to a museum, racetrack, sailing and trailer boat clubs, and a water ski club with Lake Alexander not too far inland.

It's also walking distance to the Parap Village Market - much loved by locals for its food, clothes, arts, crafts, and general tropical vibe.

"Both Fannie Bay and Rapid Creek have also offered higher capital growth than other parts of Darwin over the past 10 years," Ms Tennant said.

	Units	Houses
Median Price	$460,000	$1,135,000
Weekly Median Advertised Rent ($)	$550	$790
Gross Rental Yield	6%	4%
Quarterly Growth	-7%	2%
12 Month Growth	-8%	3%
5 Year Growth	28%	n/a

Braitling, Alice Springs

Further south in Alice Springs, Mr Tiller nominates the northern suburb of Braitling for its affordability and relatively strong yield.

The suburb features a supermarket, a Bunnings, and is around a five-minute drive to the centre of Alice Springs.

Mr Tiller said Braitling is also in close proximity to Alice Springs Hospital and Charles Darwin University's Alice Springs campus.

Rental demand in the town is largely driven by transient tourism workers and government employees. (The table below features data for houses only.)

	Houses
Median Price	$463,000
Weekly Median Advertised Rent	$570
Gross Rental Yield	6%
Quarterly Growth	-3%
12 Month Growth	-5%
5 Year Growth	8%

NT investor units

For those looking to purchase investment units, Ms Tennant has nominated the Darwin suburbs of Millner, the Darwin CBD, and Marrara as offering good yields.

	Millner	Darwin City	Marrara
Median Price	$299,000	$420,000	$302,000
Weekly Median Advertised Rent	$473	$600	$620
Gross Rental Yield	8%	7%	6%
Quarterly Growth	7%	1%	-1%
12 Month Growth	0%	-3%	-25%
5 Year Growth	7%	28%	n/a

_{Image by Harrison Macourt via Pexels}