Top 5 regions in Australia for property investors
“The common thing in all of these locations is an extremely strong rental market with vacancy rates below 1%,” said InvestorKit founder and head of research, Arjun Paliwal.
Home prices have also risen nearly 20% over the past 12 months, with the median price now sitting at $395,000.
Investors could expect a rental yield of 5%, Paliwal said, and the coastal town should have continued rental demand due to infrastructure spending and a strong local labor market.
Just 90 minutes west of Brisbane, Paliwal said Toowoomba has seen capital growth of around 0.5-1% per month over the past seven months.
Vacancy rates hovered between 0.5 and 0.6 percent and rents had also risen, while listings for sale were below pre-COVID averages.
“Toowoomba is a major regional city and a satellite city of Brisbane,” Paliwal said.
“Brisbane has seen a surge in registrations over the past few months, but that hasn’t happened in Toowoomba.”
“It’s not uncommon to see properties between $375,000 and $500,000 in Rockhampton being rented for between $450 and $550 a week,” he said.
Albury-Wodonga, NSW and Victoria
Bordering New South Wales and Victoria, Albury-Wodonga has already seen years of strong growth and is set to continue to do so.
“Albury-Wodonga has seen strong growth over the past 10 years but even after such a high level of growth, prices can still be fetched between $450,000 and $650,000 for homes,” Paliwal said.
“When you combine the cities together, it’s just under 100,000 people.”
The governments of New South Wales and Victoria also recently approved a $500 million hospital redevelopment.
“The combination of affordable pricing, low vacancy, lack of supply and its infrastructure pipeline means Albury-Wodonga still looks good,” Paliwal said.
Barossa Valley, South Australia
“When it comes to affordable lifestyle trends, the biggest spike may be behind us, but it’s unlikely to go away any time soon,” Paliwal said.
Adelaide’s affordable middle ring was also worth considering, Paliwal said, with median prices between $450,000 and $750,000.