The 25 best places to invest in Australia.

You’ve got 50 tabs open on real estate sites, know a little too much about the cast of Selling Sunset and have practised dropping ‘my portfolio’ into casual conversation. You’re itching to invest in property – but where?

If you’ve told anyone you’re thinking about investing in real estate, no doubt you’ve copped a lot of unsolicited property advice. Everyone from your neighbour to your mum’s hairdresser’s cousin has an opinion to share.
 
But one of the few guarantees when it comes to property investment is that the market never rests. It’s constantly fluctuating and the best places to invest in Australia today may not be the same next year. To that we say, do your research, consult multiple sources and stay up to date. Play it right and you could not only earn yourself a passive income but also stand to make oodles in capital growth.
 
So, while everyone may be convinced their pick is the way to go, you’re better off going with some hard data. Fortunately, REA Group economists have done the number-crunching for you. They’ve weighed up a range of factors to arrive at their picks for the best places to invest in Australia, according to a new PropTrack report.

Factors that influence best areas to invest in property.

Wondering where to buy investment property in Australia? There are several factors to consider before excitedly circling a suburb. Ultimately, the best place to invest in Australia can vary with the investor.
 
Factors include:

• capital growth
• rental yield
• vacancy rates
• days on rental market
• rental affordability (how might the cost of living crisis impact demand?)
• public transport (existing and planned)
• infrastructure and amenities (existing and planned)
• population projections
• school catchment areas
• economic diversity (are there multiple industries offering job opportunities for tenants?)
• risk factors (vulnerability to natural disasters, oversupply, changing demographics, crime rates or volatile job markets).

There are also personal factors involved, including:

• investment focus (rental income vs long-term capital growth)
• your circumstances (what’s your borrowing power? Are you rentvesting?)
• proximity (do you want to live close by?)
• long-term plan (do you plan to live in the property in the future?)

Let’s take a look at PropTrack’s selections for where you could potentially make some of the best house investments in Australia.

Australia’s 5 best places to invest in houses.

And the winners are… *cue drumroll*

1. Spalding, Western Australia.

Spalding is a north-eastern suburb of Geraldton on the Western Australian coast. Four hours north of Perth, Geraldton acts as a service city for the surrounding resource-rich regions.

Experiencing 38% capital growth over the last 12 months, Spalding has a median house sale price of $398,000. Rental yield sat at 7% and rental properties spent an average 22 days on market. 

Properties in Spalding remain affordable while being close to the coastal city’s amenities. Government funding has also been allocated to urban renewal works in the area, with the $9 million Spalding Revitalisation Project aiming to boost street appeal, improve community parks, upgrade social housing and beautify the suburb.

2. Rockhampton City, Queensland.

Houses in Rockhampton City remain affordable at a median price of $375,000, even after experiencing 35% growth in the past 12 months. Rentals sat an average 18 days on market before being tenanted and rental yield was 6%. 

The influx of new residents that have moved from Victoria and New South Wales in recent years to settle in the Sunshine State has meant population growth and increased demand for housing in Queensland suburbs. 

Rockhampton has promising population and job growth prospects, as well as infrastructure developments such as the Rockhampton Ring Road. This makes it one of the best cities for investment properties.

3. Rochester, Victoria.

Serving as both a gateway to the Murray River region and a commuter town for workers in Echuca, Shepparton and Bendigo, Rochester is only two hours from Melbourne.

PropTrack’s report on good places to buy investment property was dominated by outer suburbs with limited housing supply, high affordability and strong capital growth. The small regional town of Rochester experienced 34% annual growth to reach a median house price of $408,000. 

Rental properties spent an average 19 days on market and offered 6% yield to investors. City renters pining for a tree-change can find it in Rochester, but investors should be mindful of its flooding history. 

4. Northam, Western Australia.

Serving as the economic hub of both the Avon Valley and Central Wheatbelt, the Northam shire has a thriving and diverse agriculture industry. The town itself is the urban and commercial centre of the shire and the largest in the area. 

Northam has experienced an exciting 12 months in the property market, with houses recording a median sale price of $420,000 after 29% annual growth. Rental properties sat an average 18 days on market and offered investors 7% rental yield. 

Northam’s location at the intersection of major highways connects Perth to the eastern regions of the state. It offers promising prospects if you’re searching for good investment properties in Australia.

5. Miles, Queensland.

Queensland suburbs featured prominently on PropTrack’s list for the best place to buy investment property in Australia. Sitting at the intersection of major highways, Miles is a rural town located in the Western Downs. 

Formerly known as Dogwood Crossing, Miles experienced 29% annual growth in house sale prices to reach a median of $370,000. Rental yield was 7% and rental homes sat an average 24 days on market. 

The Western Downs has a strong agriculture industry and is also known as the ‘energy capital’ of Queensland, with coal, gas, solar, wind and hydrogen projects in the region. 

Investors are reminded to do their due diligence, as Miles has experienced housing market fluctuations in the past. Research is vital when considering the best suburbs to invest in Australia 2025.

Australia’s 25 best suburbs to invest in property.

Check out PropTrack’s top investor suburbs nationally for both houses and units.
 
Houses:
1. Spalding, WA
2. Rockhampton City, Qld
3. Rochester, Vic
4. Northam, WA
5. Miles, Qld
6. Rangeway, WA
7. Park Avenue, Qld
8. Collie, WA
9. Slade Point, Qld
10. Allenstown, Qld
11. Sunset Beach, WA
12. West Rockhampton, Qld
13. Heatley, Qld
14. South Mackay, Qld
15. Berserker, Qld.
 
Units:
1. Hermit Park, Qld
2. Orelia, WA
3. Idalia, Qld
4. Pimlico, Qld
5. North Mackay, Qld
6. Ascot, WA
7. Bungalow, Qld
8. East Cannington, WA
9. Balga, WA
10. Rosslea, Qld.
 
Source: REA Group.
 
Find PropTrack’s full list of the 200 best places to invest in Australia here.

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