As the Australian property market continues to evolve, savvy investors are on the lookout for the best suburbs for capital growth or hotspots, as they call it.
The year 2023 has seen shifts and turns, influenced by economic policies, interest rates, and changing lifestyles, making certain suburbs stand out as potential goldmines for discerning investors.
This guide delves into these emerging suburbs, offering a detailed look at their growth prospects, key investment metrics, and why they’re poised for success.
5 Factors Contributing to Capital Growth & Example Suburbs
Understanding what drives capital growth in certain areas is crucial. Suburbs with a mix of affordable entry points, strong rental yields, low vacancy rates, and ongoing infrastructure projects offer a compelling case for property investment.
| Factor | Example Suburb | Data/Impact | Connection to Highlighted Suburbs |
|---|---|---|---|
| Affordability & Strong Rental Yields | Elizabeth North, SA | Median house price: $370,000, Rental yield: 4.5% | 30% property price increase in 1 year linked to affordability & high rental yields (REA Group report) |
| Low Vacancy Rates & High Rental Demand | Armadale, WA | Vacancy rate: 1.5%, Rental yield: 4.2% | Suburbs with vacancy rates <2% experience higher capital growth (Domain study) |
| Infrastructure Projects & Improved Connectivity | Glenmore Park, NSW | Western Sydney Airport (2026), M12 motorway extension (2024) | Potential 10-15% price increase due to job creation and connectivity boost (SQM Research report) |
| Growing Population & Family-Friendly Amenities | Caroline Springs, VIC | Population growth: 5% annually | Median house price projected to reach $900,000 by 2027 (BIS Shrapnel report) |
| Urban Renewal & Lifestyle Upgrades | Chisholm, ACT | Town centre expansion planned | Potential 5-7% property value increase in 5 years (ACT Property Council estimate) |
Suggested Reading: Check out our article on the Best Suburb to Invest in Every Capital City in Australia to find out where you might want to make your next investment.
Suburb Highlights
Let’s explore some of the top-performing suburbs across Australia, providing a snapshot of their investment potential through key data points and expanded highlights that showcase their unique appeal.
First, let’s a quick look at these suburbs and compare their median house prices and rental yields.
Rental yields by suburbs for comparison
Median house prices by suburbs for comparison
Glenmore Park, NSW:
Glenmore Park in New South Wales stands out as a suburb with a blend of lifestyle appeal and investment potential. Nestled within Sydney’s dynamic market, it offers a unique mix of affordability, connectivity, and quality living that caters to families and investors alike.
- Rental Yield: Houses and units in Glenmore Park deliver competitive yields of 3.65% and 3.71%, respectively, reflecting the suburb’s solid rental market.
- Median House Price: With a median price of $1,048,000 as of the end of 2023, the area presents a range of investment opportunities, from high-value homes to more affordable units.
- Vacancy Rate: A low vacancy rate of 2.2% indicates a healthy demand for rental properties, making it an attractive option for investors seeking consistent rental income.
Expanded Highlights: Glenmore Park is poised for growth, driven by significant infrastructure projects that promise to enhance its appeal:
- The Western Sydney Airport, expected to complete by 2026, is set to increase the area’s connectivity and boost the local economy, making it a hotspot for investment and development.
- The M12 motorway extension and Sydney Metro West are key projects enhancing access to Sydney CBD and Parramatta, promising reduced commute times and improved public transport links.
- These developments are anticipated to bring increased job opportunities, population growth, and overall suburb development, potentially leading to property value appreciation.
Explore more properties for sale in Glenmore Park NSW 2745.
Elizabeth North, SA:
Elizabeth North in South Australia is rapidly emerging as a sought-after area for property investment, thanks to its affordability, strategic location, and significant potential for capital growth.
- Rental Yield: Attractive yields of 4.5% for houses and 4.8% for units reflect the strong rental demand in the area.
- Median House Price: The median house price stands at $370,000, offering an affordable entry point for investors.
- Vacancy Rate: The low vacancy rate of 1.7% signifies tight rental markets, potentially translating to reliable rental incomes.
Expanded Highlights: The suburb’s appeal is bolstered by the Edinburgh Defence Precinct expansion and Northern Expressway duplication, promising job creation and improved connectivity.
Additionally, the Elizabeth City Centre’s revitalization and the redevelopment of Parafield Airport into a commercial hub are set to enhance local amenities and lifestyle options.
For those considering investments in Sydney with a focus on affordability, the sydney suburbs under $600k article offers valuable insights into areas where property values are yet to peak, providing opportunities for significant capital gains.
Check out more available real estate for sale in Elizabeth North, SA.
Armadale, WA:
Armadale in Western Australia is experiencing a renaissance, with urban renewal efforts transforming the suburb into an attractive location for both residents and investors.
- Rental Yield: Houses and units yield 4.2% and 4.7%, respectively, indicative of a healthy rental market.
- Median House Price: The median house price is $520,000, offering value in Perth’s competitive market.
- Vacancy Rate: A vacancy rate of 1.5% underscores the high demand for housing.
Expanded Highlights: The focus on revitalizing the town centre, incorporating green spaces and mixed-use developments, is attracting new businesses and boosting property values.
This urban renewal is enhancing aesthetics and lifestyle amenities, making Armadale a more desirable place to live and invest.
You might want to check out Soho’s feature on the Future Growth Suburbs in Perth in 2024 for more info.
Explore more properties for sale in Armadale WA 6112.
Campsie, NSW:
Campsie, a suburb in New South Wales, is becoming increasingly popular for its unit living, offering a blend of urban convenience and investment viability.
- Rental Yield: Units in Campsie show a promising yield of 4.1%.
- Median Unit Price: The median unit price is $745,000, reflecting the suburb’s growing appeal.
- Vacancy Rate: A vacancy rate of 2.5% for units suggests a balanced rental market.
Expanded Highlights: Campsie’s proximity to public transport, including a train station and multiple bus routes, enhances its attractiveness. The area’s accessibility to major universities via public transport makes it a convenient choice for students and young professionals, driving demand for units.
Explore more properties for sale in Campsie NSW 2194.
Caroline Springs, VIC:
Caroline Springs in Victoria is recognized for its rapid population growth and family-oriented environment, making it an attractive prospect for property investors.
- Rental Yield: Houses and units in Caroline Springs offer yields of 3.8% and 4.0%, respectively.
- Median House Price: The median house price is $770,000, accommodating a range of investment budgets.
- Vacancy Rate: The vacancy rate of 2.1% indicates healthy demand for housing in the area.
Expanded Highlights: The suburb’s family-friendly atmosphere is supported by numerous parks, schools, and community amenities.
Planned expansions of the town center and improvements in public transport connectivity to Melbourne CBD are expected to further boost its desirability and property values.
Explore more properties for sale in Caroline Springs VIC 3023.
For investors focusing on Melbourne, exploring the best capital growth suburbs in Melbourne can provide deeper insights into areas with high growth potential, complementing the investment opportunities highlighted in Caroline Springs.
Annerley, QLD (Units):
Annerley in Queensland stands out for its vibrant community and strong returns on unit investments.
- Rental Yield: Units yield an impressive 4.5%.
- Median Unit Price: The median price for units is $530,000, offering an affordable investment option in Brisbane.
- Vacancy Rate: The vacancy rate for units is 2.3%, showcasing a steady demand.
Expanded Highlights: The suburb’s walkability and proximity to Brisbane CBD, coupled with its lively atmosphere and community events, make Annerley a sought-after location for young professionals and families alike.
Explore more units for sale in Annerley QLD 4103.
Chisholm, ACT:
Chisholm, located in the Australian Capital Territory, is emerging as a prime investment location due to its growth potential and connectivity.
- Rental Yield: Offers yields of 4.8% for houses and 5.0% for units, among the highest in the region.
- Median House Price: The median house price is $650,000, appealing to a broad range of investors.
- Vacancy Rate: A low vacancy rate of 1.8% indicates a tight rental market.
Expanded Highlights: Close to major employment hubs and with plans for town center expansion, Chisholm is poised for population growth and increased demand for housing, making it an attractive option for investors.
Explore more properties for sale in Chisholm ACT 2905.
Conclusion:
In 2023, the Australian property market presents diverse opportunities for investors, underscored by the unique prospects of each suburb we’ve explored. From Glenmore Park’s infrastructure-driven growth to Chisholm’s connectivity and potential, each area offers a distinct pathway to capital growth and investment success.
These suburbs not only represent strategic investment choices but also reflect broader trends in the property market, including the importance of location, community amenities, and future development plans.
Suggested reading: Want a comprehensive view of Australia’s top suburbs? Proceed to our dedicated piece on the best suburbs in Australia.
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FAQ Section on Best Suburbs for Capital Growth
What is the most in demand suburb in Australia?
The most in-demand suburb in Australia can vary depending on factors such as population growth, economic activity, and housing affordability.
However, some suburbs that have consistently shown high demand include Chandler, QLD in Brisbane’s East, Matcham, NSW in the Central Coast region, and Holgate, NSW also in the Central Coast.
What is Australia’s fastest-growing suburb?
Australia’s fastest-growing suburb is often subject to change due to various factors such as infrastructure developments, population growth, and economic trends.
As of recent data, suburbs like Riverview, QLD 4303 have shown significant growth with a median house price of $445,902 and a growth rate of +23.7% over 12 months.
What suburbs will boom in Sydney in 2024?
Suburbs expected to experience growth or “boom” in Sydney in 2024 include Wanneroo in Western Australia, Maitland in NSW, and Logan in Queensland.
These areas have been identified by experts as having potential for investment due to factors such as infrastructure projects and economic development.
Where to invest in Australia 2024?
When considering where to invest in Australia in 2024, it’s essential to research areas with strong growth prospects, rental demand, and affordability. Suburbs like Wiley Park, NSW, identified by experts as compelling options for investment, offer opportunities for property growth and rental yield
