Australia’s top 20 best places to invest

You’ve been saving for this moment. You’ve got over 50 tabs open on real estate websites, binged Selling Sunsets in lockdown and practiced saying “my portfolio” in the mirror.

And while Mum’s convinced her suburb is the best investment move you can make, you’re going to need some hard data. (Sorry, mum.)

Fortunately, ME has partnered with national planning urban economics firm, Ethos Urban, to bring you a list of Australia’s top 20 best places to invest.

Our method for madness

With potentially thousands of locations on the list, the research needed to be refined to uncover the winners. To ensure the results were as inclusive as possible, they needed to tick the following boxes:

• For everyday Australians - whether you’re a first-time investor or savvy Sally, these places are unlikely to have you bidding against any of the Murdochs.
• Investments of all shapes, sizes and prices - this research isn’t based on the highest or lowest selling prices. Instead, a wide range of price points and asset types have been considered including houses, townhouses, units and apartments, so there’s plenty of options across the winning suburbs.
• Future growth - specific reasons that investment in certain locations would make a good choice and focused on where there has been recently completed, soon to be completed, or under construction transport infrastructure that could drive land value growth and potentially, urban renewal.

Filters on

The results from the preliminary round produced a list of over 126 suburbs, which were then filtered based on 12 criteria including population growth, asking rent growth, median price growth and number of sales.

The research discovered that apartment-based markets make up most of the suburbs in the final top 20 list, followed by houses.

However, the focus for winning suburbs were based on these three key criteria:

1. Transport infrastructure

Trainspotters unite – increase in transport infrastructure often signifies future demand and capital growth. It also plays an important role in decision-making for potentials renters as it shows that they can move around the suburb and its surrounds freely.

2. The vibe

Yes, the general vibe of the location matters. Potential renters are more likely to choose a suburb or property with thriving local cafes and trendy eateries, so a few smashed avos will definitely be had in the research process.

3. Rental yield

This one’s a no brainer. The better the rental yield in the suburb, the higher your investment return.

With these filters in mind, our friends at Ethos Urban crunched the numbers and analysed the data, bringing ME and you Australia’s top 20 best investment locations.

And the winner is… *cue drumroll*

Woolloongabba in Queensland!

Yay…where? For interstate players, this suburb is one of Brisbane’s not-so-hidden gems. Lined with bustling bistros, craft breweries and fine dining favourites, it is quickly emerging as one of the Brisbane’s best inner city suburbs to live in. Woolloongabba is also set to receive significant investment from the Queensland State Government to improve its local transport infrastructure which will see the area experience significant growth.

Coming in third, New South Wales’ best is…

Five Dock. This inner west suburb is rich with character and perfectly blends the laid-back Inner West lifestyle with larger homes. Renters and local residents are blessed with plenty of retail options along Great North Road alongside a mix of Italian-influenced cafes and delis. So you can have your gelato and eat it too. The suburb is also thriving with plenty of parks close by and will soon be home to a new metro station, providing a breezy, direct trip to Sydney CBD.

Overall, NSW won the title of the golden state, claiming almost half of Australia’s best investment opportunities and featuring 9 suburbs in the top 20 including Rozelle, Parramatta and Crows Nest in the top 10.

And taking fourth place, Victoria’s best is…

North Melbourne. Once a working-class suburb, North Melbourne has recently flourished into a stylish suburb lined with terrace houses, award-winning cafes and a growing arts scene. This suburb sits on the edge of the city but still has that charming community and neighbourhood vibe with plenty of tempting eateries along Errol Street. The suburb is serviced by tram routes, a number of bus routes and will also see transport infrastructure improvement with the new Arden Railway Station built on Arden Road as part of the Melbourne Metro Rail Project.

For the full list of winners, here it ME’s top 20 final list of best places to invest in Australia:

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

Now, armed with these insights, you’ll have information to impress at your next dinner party plus a short list of future investment locations that mum might just approve of. To view our full report, download it here or to speak to an expert, contact ME.