24-Nov-2021 • Home Buying

ME has today revealed Australia’s top 20 best places to invest for residential property investors looking to forge new financial goals following the COVID-19 pandemic.

The national winner is the Queensland suburb of Woolloongabba in Brisbane’s thriving inner east.

ME commissioned the new research from Ethos Urban, a national urban development consultancy, to assemble the coveted list in a bid to help all Australians looking to maximise low interest rates and extra savings acquired during the COVID-19 pandemic.

Qualitative and quantitative criteria were also applied to identify suburbs with the best investment prospects. These factors include:

  • how new transport infrastructure would re-shape the investment landscape across the range of suburbs;
  • average rental yields;
  • recent population growth;
  • median house prices; and
  • average rental prices together with lifestyle appeal measurables such as the availability of coffee shops and cafes.

Based on this criteria, Australia’s top 20 best places to invest are:

1. Woolloongabba, QLD
2. Burleigh Heads, QLD
3. Five Dock, NSW
4. North Melbourne, VIC
5. Rozelle, NSW
6. Ellenbrook, WA
7. Parramatta, NSW
8. Crows Nest, NSW
9. Preston, VIC
10. South Melbourne, VIC
11. Yanchep, WA
12. Waterloo, NSW
13. Coffs Harbour, NSW
14. North Sydney, NSW
15. Pyrmont, NSW
16. Claremont, WA
17. Mermaid Beach, QLD
18. Miami, QLD
19. Concord, NSW
20. Fairfield, QLD

ME’s Consulting Demographer, Chris McNeill from Ethos Urban said: “A common theme that really stands out in ME’s list is the huge impact that new transport infrastructure has on creating investment opportunities in a suburb.

“Add to this the exciting atmosphere in Logan Street, its rapid population growth and steady house price growth, it really does offer a unique opportunity for those looking to invest in the residential property market,” said Mr McNeill.

ME’s list of best places to invest captures all levels of investment, from apartment-focused buying in Five Dock, South Melbourne or Claremont to larger freestanding home opportunities in up and coming suburbs such Yanchep or Preston.

ME General Manager, John Powell said: “It’s important to ME that we’re helping all Australians get ahead. We know many people across the country spent the COVID-19 lockdowns reviewing their financial goals and are now looking to take the next step in achieving them.

“The ME best places to invest list provides quality information which will help investors narrow their property search and find the ideal investment,” Mr Powell said.

State findings from the report:

New South Wales

New South Wales dominates the top 20

New South Wales is a clear winner when it comes to investment opportunities for Australians, claiming an impressive nine spots in the top 20 national list. Five Dock (#3), Rozelle (#5), Parramatta (#7) and Crows Nest (#8) all secured spots in the top 10.

“Key transport infrastructure projects like the Sydney Metro South West Project will enhance connectivity to the CBD from areas including North Sydney and Crows Nest, bolstering the already well-established apartment market and coffee scene,” McNeill said.

“Five Dock, Rozelle, Parramatta, Pyrmont (#15) and Concord (#19) will significantly benefit from the high-speed, high-frequency metro line connecting them to the Sydney CBD. This adds to their appeal for investors following recent growth in rental prices, median house prices and change in white-collar workers”.


Victoria claims three spots in the top 10

“The already eclectic North Melbourne (#4) boasts fourth position as the North Melbourne underground will connect with Melbourne Central, Melbourne University and Flinders Street, while incorporating in the Arden Street Precinct Structure Plan,” McNeill said.

“The Andrews Government’s investment in removing level crossings is creating change around Victoria. For instance, upgrades to safety and amenities in Preston (#9), have significantly improved the investment prospects for the north Melbourne suburb.

“The Melbourne Metro upgrade will also see the already booming South Melbourne (#10) be the perfect spot for apartment investing. With connectivity to Albert Park, good investment returns and capital growth, and lively coffee culture, what’s not to love.”


Queensland shines with top two positions

“In addition to the coveted title of ‘Australia’s best place to invest’, Queensland is home to a quarter of the suburbs in the top 20. Queensland’s investment in both Woolloongabba (#1) and the Gold Coast has been key,” McNeill said. “The new Cross City Rail and the Burleigh Heads Light Rail will turbo charge value along the picturesque coast line of the Gold Coast, adding to its already valuable apartment living and growing retail focus, creating greater connectivity to both the Coolangatta (including Airport) and Surfers Paradise for the three Gold Coast suburbs of Burleigh Heads (#2), Mermaid Beach (#17) and Miami (#18).”

Western Australia

WA secures three top 20 spots

Featuring three suburbs in the top 20, Australia’s west covers diverse areas from wine country, to the beach to the leafy well-regarded suburbs perfect for apartment investments.

“The new growth area of Ellenbrook (#6), with its wineries and masterplan estate took out sixth place thanks to WA’s investment in the Ellenbrook Rail Extension, connecting more than five suburbs,” McNeill said.

(#11) “Yanchep’s beautiful beaches and coastal township is also set to benefit from the Yanchep Rail Extension, making the journey to Joondalup just a 30-minute commute, while Claremont (#16) in Perth’s leafy western suburbs will benefit from the Claremont station upgrade, making it for a perfect residential apartment investment opportunity.”

Other states

“While the ACT, South Australia, Tasmania and Northern Territory, had no entries in the top 20, this doesn’t suggest they are lacking in favourable investment options. Based on the statistical approach and methodology applied, it is simply that the most impactful transport projects presently being undertaken, are in New South Wales, Victoria, Queensland and Western Australia,” said McNeill.


Editor notes:

· Images of featured towns available on request.

· Home loan lender, ME commissioned the research with the assistance of Ethos Urban, a national planning and urban economics consultancy.

· This is a list of Australia’s best suburbs for residential investment.

· This report presents research that was conducted in October and published in November 2021.

· This report does not offer financial advice, each investor should consider their own personal situation.

· ME does not endorse or support the infrastructure projects mentioned, these simply serve for research methodology.

· ME’s survey found that 84% of respondents agreed that the time at home during lockdown was an ‘opportunity to assess their financial goals’, leading to investment opportunity.

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