When it comes to property investment, choosing the best suburb to invest in every capital city in Australia can make a significant difference in your investment journey.
Each capital city offers unique opportunities, from bustling urban centers to tranquil residential areas.
In this article, we’ll explore the top suburbs for property investment in Australia’s biggest capital cities, highlighting key factors such as capital growth, median house prices, and rental yields.
Sydney, New South Wales
Best Suburb to Invest in Sydney: Marrickville
- Median Sale Price: $2,000,000
- Median Rent: $915 per week
- Median Gross Yield: 2.3%
- Median Sale Price Change (1yr): 14.03%
Data source: propertyvalue.com.au
Marrickville is the only Sydney suburb to make it into Time Out’s latest Coolest Neighbourhoods list, rubbing shoulders with the likes of Canada’s Mile End and Japan’s Shimokitazawa.
This suburb stands out due to its vibrant character and one of the best dining scenes in all of Sydney.
Despite the large ongoing developments, Marrickville maintains its authentic grit and offers a solid balance between city access, diversity of housing types, and enjoyable public spaces.
The suburb’s capital growth over the past year has been significant, with a 14.03% increase in the median sale price.
For investors, Marrickville offers a trendy yet practical choice. The median rent of $915 per week provides a solid rental income, though the median gross yield is slightly below the national average.
However, the suburb’s appeal to younger residents and its excellent public transport options ensure it remains a sought-after location. Marrickville’s mix of cultural vibrancy and potential for high returns makes it a prime choice for property investment in Sydney.
But there are other suburbs in Sydney to consider investing in as well…
Parramatta, often referred to as Sydney’s second CBD, Parramatta is seeing significant commercial and residential development, enhancing its appeal as an investment hotspot. Also, Liverpool: With major infrastructure upgrades and its designation as a regional city center under Sydney’s metropolitan plan, Liverpool offers potential for growth.
Shaun Bettman, Director, Eden Emerald Mortgages
Suburb Ratings: Marrickville NSW
Explore more real estate for sale in Marrickville NSW.
Melbourne, Victoria
Best Suburb to Invest in Melbourne: Brunswick
- Median House Price: $1,300,000
- Median Weekly Rent: $700
- 12-month Growth: -1.52%
- Average Annual Growth: +5.11%
Brunswick is known for its cultural diversity and dynamic lifestyle, making it a standout suburb for investment in Melbourne. The suburb offers excellent public transport links, with Brunswick and Jewell Train stations and the Sydney Road tram providing easy access to the CBD.
Brunswick’s median house price is $1.3 million, with a median weekly rent of $700, providing a balance between purchase cost and rental income.
Although the 12-month growth rate shows a slight decline of -1.52%, Brunswick’s long-term prospects remain strong with an average annual growth of +5.11%.
This suburb is a hot spot for cafes, arts, live music, and shopping, making it highly attractive to renters and buyers alike. Its vibrant community and variety of amenities ensure steady demand, making Brunswick a top choice for property investors in Melbourne.
Learn more about where to buy an investment property in Melbourne.
Suburb Ratings: Brunswick VIC
Check out more properties for sale in Brunswick VIC 3056.
Honourable Mentions For Best Suburbs to Invest in Sydney
Brisbane, Queensland
Best Suburb: Redcliffe
- Median House Price: $755,000
- Median Weekly Rent: $555
- 12-month Growth: +4.14%
- Average Annual Growth: +11.40%
Redcliffe, a lovely seaside town in Brisbane, offers a blend of low crime rates, good employment prospects, and great schools, making it a desirable location for families.
The recent investments by the government in the Redcliffe peninsula have led to rapid gentrification, attracting developers and small business owners.
The renovated waterfront, beautiful art installations, and community spirit make Redcliffe an excellent choice for property investors looking for a vibrant yet stable market.
Want more? Read about the best suburbs to invest in Brisbane in 2024.
Suburb Ratings: Redcliffe QLD
Don’t forget to check out more properties for sale in Redcliffe QLD 4020.
Perth, Western Australia
Best Suburb to Invest in Perth: Joondalup
- Median House Price: $675,000
- Median Weekly Rent: $620
- 12-month Growth: +20.54%
- Average Annual Growth: +6.66%
Joondalup, known for its vibrant cultural scene, including galleries, theatres, and educational institutions like Edith Cowan University, is a top investment suburb in Perth.
The suburb’s median house price stands at $675,000, with a median weekly rent of $620. Over the past year, Joondalup has seen substantial growth, with a +20.54% increase in the median house price and an average annual growth rate of +6.66%.
Joondalup offers a versatile living experience with attractions like The Lakeside Shopping Centre, Joondalup Resort Golf Club, and pristine beaches.
These amenities, combined with efficient public transportation, make Joondalup a highly attractive location for both residents and investors.
Check out more properties for sale in Joondalup WA 6027.
Suburb Ratings: Joondalup
Adelaide, South Australia
Best Suburb to Invest in Adelaide: Norwood
- Median House Price: $1,480,000
- Median Weekly Rent: $670
- 12-month Growth: +8.42%
- Average Annual Growth: +12.50%
Norwood is one of Adelaide’s most desirable locations, offering a vibrant lifestyle close to the CBD.
The suburb’s median house price is $1.48 million, with a median weekly rent of $670. Over the past 12 months, Norwood has experienced a growth rate of +8.42%, with an impressive average annual growth of +12.50%.
Norwood’s proximity to some of Adelaide’s finest public and private schools, fabulous cafes, restaurants, and shops make it a popular choice for both investors and home buyers.
The suburb’s blend of city sophistication and suburban charm, along with its high capital growth prospects, make it an excellent investment location in Adelaide.
Check out more properties for sale in Norwood SA 5067.
Suburb Ratings: Norwood
Canberra, Australian Capital Territory
Best Suburb to Invest in Canberra: Belconnen
- Median House Price: $642,500
- Median Weekly Rent: $620
- 12-month Growth: +5.76%
- Average Annual Growth: +9.80%
Belconnen is one of Canberra’s most established districts, offering a mix of urban convenience and natural beauty.
The suburb’s median house price is $642,500, with a median weekly rent of $620. Over the past 12 months, Belconnen has seen a growth rate of +5.76%, with an average annual growth of +9.80%.
Belconnen is home to several shopping centers, government departments, educational institutions like the University of Canberra, and recreational facilities.
The ongoing investment and redevelopment planning in the area, including the planned land release around Lake Ginninderra, make Belconnen a prime choice for property investors in Canberra.
We would recommend North Canberra suburbs. Molonglo Valley and Belconnen are expected to be the fastest-growing districts. This is aligned to estimated population growth in the area and upcoming infrastructure projects.
Paul Corazza, Director of Independent Property Group
Suburb Ratings: Belconnen
Check out more properties for sale in Belconnen ACT 2617.
Hobart, Tasmania
Best Suburb to Invest in Hobart: Sandy Bay
- Median House Price: $1,250,000
- Median Weekly Rent: $610
- 12-month Growth: -9.75%
- Average Annual Growth: +6.47%
Sandy Bay in Hobart is known for its stunning waterfront views and proximity to the University of Tasmania.
The suburb’s median house price is $1.25 million, with a median weekly rent of $610. Although the 12-month growth rate shows a decline of -9.75%, the average annual growth remains positive at +6.47%.
Sandy Bay offers a unique blend of natural beauty and urban convenience, making it a popular choice among academics, students, and professionals.
The suburb’s vibrant, youthful atmosphere and proximity to Hobart’s CBD make it a prime location for property investment in Tasmania.
Suburb Ratings: Sandy Bay
Check out more properties for sale in Sandy Bay TAS 7005.
Darwin, Northern Territory
Best Suburb to Invest in Darwin: Nightcliff
- Median House Price: $835,500
- Median Weekly Rent: $740
- 12-month Growth: -11.47%
- Average Annual Growth: +6.49%
Nightcliff is a coastal suburb in Darwin known for its markets, coastal paths, and hidden cafes.
The suburb’s median house price is $835,500, with a median weekly rent of $740. Despite a 12-month growth decline of -11.47%, Nightcliff has a solid average annual growth rate of +6.49%.
Nightcliff’s blend of natural beauty and urban convenience, along with its high rental yields and established community, make it an attractive choice for property investors.
The suburb’s unique charm and strong long-term growth prospects ensure it remains a desirable investment location in Darwin.
Suburb Ratings: Nightcliff
Check out more properties for sale in Nightcliff NT 0810.
How We Selected the Best Suburb to Invest in Every Capital City in Australia
Choosing the best suburbs to invest in each capital city involves a deep dive into several key factors. Our recommendations are based on the latest data, expert opinions and specific criteria that point to strong investment potential. Here’s how we did it:
- Median House Prices and Growth Rates: We looked at the median house prices and growth rates over the past year and beyond. Suburbs with high growth and stable or rising median prices were at the top of the list.
- Rental Yields: We checked the median weekly rent and rental yields to make sure the properties in these suburbs generate a good return. High rental yields mean the property can produce a steady income.
- Economic and Lifestyle Factors: Suburbs with strong local economies, good jobs and desirable lifestyle amenities were highly regarded. Proximity to schools, public transport, shopping centres and recreational facilities also played a big part in our selection.
- Expert Opinions and Market Insights: We referenced reputable sources and expert analysis to back up our picks. Sources like Your Investment Property Magazine, Property Value provided the data on growth rates, median prices and rental yields.
And resident reviews helped us get the on-ground reality of these suburbs. - Future Potential: We also considered planned developments, infrastructure projects and gentrification efforts.
Suburbs with planned land releases, new transport links and other development activity have future growth potential.
So here are the suburbs that tick all the boxes: strong investment returns, growing infrastructure and a great lifestyle.
We wanted to recommend places where you can reap rental income now and property value growth later. To see more available listings, explore our real estate for sale on Soho.com.au.
FAQs on ‘Best Suburb to Invest in Every Capital City in Australia’
Where is the best place to invest in Australia?
Perth is currently considered one of the best places to invest in Australia, largely due to its affordability and strong investor score.
The region is noted for offering a good balance of yield potential and capital growth prospects, particularly appealing to investors looking for value in a robust market.
What is Australia’s fastest growing suburb?
Seville Grove and Cooloongup, both located in the vicinity of Perth, are among the fastest selling suburbs in Australia. These areas have gained attention due to their rapid sales times, which indicate a high demand among homebuyers.
You might want to check out Soho’s article on the Best Suburbs for Capital Growth in Australia to learn more.
Where is the highest ROI in Australia?
Perth and southeast Queensland are recognized for their high yield profiles and potential for capital gains. These areas attract a mix of interstate and overseas migration, which bolsters housing demand and supports investment returns.
Which is the best suburb in Australia?
Bellevue Hill in Sydney holds the title for the most expensive suburb, which often correlates with high desirability. Its prestige and the presence of luxurious properties make it a top choice for affluent buyers plus, who can resist a lifestyle which includes waterfront mansions?
