Australia’s property market is a great investment opportunity for those looking to make their money grow. With so many options and good possibilities, it might just be the perfect time to choose any from the 26 best suburbs to invest in Australia 2021.
There’s no denying that Australia underwent some unexpected changes in 2020. A lot more people began working from home. Interest rates fell to unprecedented levels. The government started offering a wide range of grants and subsidies designed to support first home buyers and encourage investment in the residential construction industry. The result? In amongst the doom and gloom, the Australian property market started to see some unexpected growth. In fact, despite entering a recession and seeing an early dip in property values, by the end of the year property prices across the nation had seen an average increase of 1.1%.
Not only did the property market start to grow but, according to numerous industry experts, property prices across the country are predicted to undergo a strong rebound as we make our way through 2021. Off the back of a Reserve Bank of Australia (RBA) promise to leave interest rates alone for at least the next three years, buyer confidence has skyrocketed and more people than ever are looking to buy before the market really takes off.
So, which suburbs should a savvy prospective buyer be keeping a close eye on? Are these areas scattered across the country or collected in just one state? And are property prices in these locations accessible for a wide range of buyers, or limited to the top tiers? The following list includes 26 suburbs across the country that are tipped to be profitable for investors in the coming year. It includes entry-level suburbs as well as high-level investments, and, while it’s just a guide, these forecasts were made based on solid predictions within the property market.
26 Australian Suburbs Predicted to Make Money in 2021
Here is a list of the top 26 growth suburbs to invest in Australia. Lets understand where you can find the best investment property for you.
At just 45kms for the Melbourne CBD, Melton is an easy commute to the city, with trains running regularly to Southern Cross Station. Despite substantial growth in recent years, Melton maintains a modest median house price of just $392,000, with the average unit costing only $320,000. It is estimated that over the next 40 years the Melton area will end up home to 40% of metro Melbourne’s population growth.
Located in Melbourne’s outer-north, Craigieburn is known for its affordable homes that are large enough to house a growing family. Property values have seen an increase of 7.5% over the past 5 years, with the median house price now sitting at $510,000 for a 3-bedroom home. The rental market in Craigieburn is currently commanding an average of $380 per week for a 3-bedroom house and $430 per week for a 4-bedroom house. With its range of grasslands, good schools and community facilities, it’s easy to see why so many families are flocking to Craigieburn.
3. Box Hill
Box Hill can rightly be called one of the highest performing suburbs in Australia, with a phenomenal 20.84% capital growth in the past year alone. The fantastic range of infrastructure makes it easy for people living in Box Hill to commute to the city via tram or rail, while the great range of restaurants make Box Hill appealing to the foodie crowd. With several medical and educational facilities in Box Hill, there is a high demand for rentals, particularly apartments suited to just 1 or 2 people.
Geelong has become increasingly popular in recent times, experiencing a population growth of 14% during the past 5 years alone. In addition to launching the Geelong City Deal (a $382.48 million plan to revitalise the local area) and offering first home buyer incentives, Geelong has experienced a property growth rate of 5.9% for units and 9.2% for houses. When it comes to unit sales, the Greater Geelong area had 4 out of the top 5 suburbs for the highest number of unit sales in 2020, with the average 2-bedroom unit commanding a weekly rent of $410. You can choose from the best suburbs in Geelong to invest 2021.
For those seeking to buy an investment property in regional Victoria, Wodonga is a fantastic option. Not only is Wodonga more affordable (with a median house price of $347,950) than its neighbouring suburb of Albury, but it also has a strong rental market. In fact, vacancy rates in Wodonga are just 1.58%, while rental yields are around 5.4% for a house (with an average weekly rent of $365). Wodonga is seeing a slow but steady rise in property prices, with this trend predicted to continue over the coming years.
While Toowong has a higher median house price ($980,500), the average unit price is a more affordable $472,500. Toowong is currently seeing solid growth, with a compound growth rate of 6.2% for houses over the past 5 years. Toowong caters to the lifestyle crowd, which has resulted in a high demand for river-view apartments. The average rental property in Toowong currently leases for $578 per week, while a 2-bedroom unit will list for around $430 per week. That’s why Toowong could be one of best growth suburbs to invest in Australia.
2. Camp Hill
Located close to the city (with the Brisbane CBD just 6km away), Camp Hill is home to a range of sought-after schools, making it the ideal location for families. A 3-bedroom house in Camp Hill will have an average price of $805,000 and deliver a weekly rent of $490. Camp Hill has a high demand market at the moment, with listed properties experiencing 1,921 visits on average, compared to the state average of just 808 visits per property.
A family suburb just half an hour from the Brisbane CBD, Manly has a great range of property options, including apartments, brick homes and units. The average house in Manly will rent for $550 per week, delivering an annual rental yield of 3.2%. Meanwhile, units in Manly rent for an average of $420 per week, for an annual yield of 4.2%.
Tugun is an incredibly popular suburb on the Gold Coast, with a broad demographic of older couples, families, young adults and those who are retired. This lifestyle-orientated area is seeing the highest number of views per listing of any regional Queensland suburb, with 2,530 visits per property. The median house price is currently hovering at $730,000, while the average rental property is asking $585 per week.
Millswood saw some fantastic growth during the past year, with an increase in the median house price of almost 20%. The average listed property in Millswood will gain over 3,800 online views, substantially more than the South Australian average of just 1,379. Rental properties in Millswood lease for an average price of $625 per week, with this desirable inner-southern suburb playing home to SASMEE Park, the Goodwood Oval, assorted sporting facilities and a tertiary college.
2. Port Elliot
This suburb experienced an increase in demand during the height of COVID-19 disruptions, perhaps in part because of its close proximity to the beach. During the past year, Port Elliot saw an increase of 9.8% in property values, with the median house price now sitting at $487,000 and an average asking price of $323 per week in rent.
3. Mount Gambier
Mount Gambier offers a great mix of rural living, city comforts and stunning natural scenery. Interest in Mount Gambier has also increased as a result of COVID, with the suburb gaining the highest number of enquiries for any town in South Australia from April through to September of 2020. A lot of this interest has been from first home buyers and investors looking to capitalise on a very affordable median house price of $269,000.
1. Sandy Bay
Home to a diverse range of artists, professionals and students, Sandy Bay is close to the city centre, has several fantastic beaches and is considered to be one of Hobart’s most esteemed suburbs. The area has seen a 5 year growth rate of 7.4% for houses and 9.5% for units, with the median house price now sitting at $961,000. With an average weekly rent of $595, houses in Sandy Bay deliver an annual rental yield of 3.2%.
2. Blackmans Bay
Blackmans Bay is ideal for investors seeking an affordable property venture with the prospect of solid long-term growth. Close to Hobart and offering impressive scenic views, units in Blackmans Bay have an average price of $440,000 and typically lease for $425 per week (an annual rental yield of 5%). The median house price is $640,000, with a compound growth rate of 8.5% over the past 5 years.
Tasmania’s second-largest city has a great mix of properties available, including historic homes, inner-city warehouse conversions and affordable suburban family homes. With the government promising to invest in local employment, health, education, transport, housing and infrastructure, the appeal of Launceston is likely to see commeasurable growth. Currently, the median house price is $514,000, while a 2-bedroom unit has an average value of $393,000.
AUSTRALIAN CAPITAL TERRITORY
Recent improvements to infrastructure have led to a marked increase in Franklin property prices, with the average price for a 3-bedroom home now $560,000. With its easy proximity to the airport and the CBD, Franklin is popular with those looking for a no-fuss commute. Houses in Franklin have experienced a compound growth rate of 5.4% (over 5 years) and currently offer an annual rental yield of 4.2%.
Coombs is the subject of ongoing development, something that has led to exceptional growth in recent times. With its close proximity to Weston Creek Community Centre and the Holder Wetlands, Coombs delivers a great range of community facilities and natural attractions. Units in Coombs currently have a median price of $485,000 and have seen an average year-on-year increase of over 9%.
Investors looking to buy in Dickson will find that units are the way to go, with a current median price of $542,000 after year-on-year growth of 15%. This high demand for units is due to improvements in infrastructure (including a light rail interchange located close to the local shopping centre) and a range of new developments which are appealing to first home buyers and those looking to downsize.
COVID restrictions in Western Australia have led to a substantial increase in demand in Karratha, as mining corporations aim to keep workers within the state. Sales activity in Karratha has grown by 61%, with the median dwelling price increasing by 8.1% to $465,000. The high demand for rental properties has led to an average rental price of $725 per week, delivering a high return on investment for property owners.
Willagee offers the vibe of a small town but close to both Freemantle and the Perth CBD. With approximately 33% of the population renting, Willagee has an exceptionally low vacancy rate of just 0.63% – a big drawcard for investors looking to rent out their properties. Units are offering a rental yield of around 6.5%, with a median price of $282,000 and a weekly rent of $350.
Less than an hour from Perth and sandwiched between the beaches of the Indian Ocean and the nearby National Park, Yanchep is becoming an increasingly popular suburb. With more and more people looking for a coastal change post-COVID, Yanchep saw a 133% surge in property sales during October 2020, as many buyers took the opportunity to buy up available land. Although the current median house price is $370,000, this figure is expected to rise in the coming years.
NEW SOUTH WALES
1. Bardwell Park
Despite a median house price of $1.4 million, demand in Bardwell Park remains high, with a typical property listing receiving 3,002 visits (almost double the NSW average of 1,572 visits per property). Close to the eastern and inner west suburbs of Sydney, Bardwell Park has an average rent price of $650 per week, for a respectable rental yield of 2.4% per annum. The area is popular with established families and couples, with this demographic making up almost a quarter of households in the area.
Located on Sydney’s northern beaches, Narrabeen is a popular suburb for renters, with approximately 40% of properties currently occupied by tenants. A magnet for the young professional crowd, Narrabeen offers a range of lifestyle features that are ideal for those seeking a more harmonious work-life balance. Narrabeen has seen a compound growth rate of 5% over the last 5 years, with industry experts predicting this trend will continue.
After recent blows to the local economy, Newcastle is in the process of bouncing back. Becoming a popular place for ‘Independent Youth’, the population of Newcastle includes many young professionals who appreciate the convenience of a city with the relaxed beachside vibe of a holiday town. The compound growth rate in Newcastle has been steady, with an increase of 8.3% for units and 3.3% for houses. The median price for a unit in Newcastle is $725,000, with the average unit renting for $495 per week.
Located on the Hawkesbury River about an hour’s drive north-west of Sydney, Windsor has become more desirable thanks to an increase in remote working opportunities. With the long commute to the city no longer an issue, people are succumbing to the charms of Windsor’s outskirt life, thanks in large part to the suburbs housing affordability. With the average house leasing for $440 per week, investors can expect a rental yield of 3.3%.
The entire Central West region has seen steady growth over the past 5 years, thanks in large part to the local mining sector. In Bathurst, where almost 25% of the population are classed as ‘Independent Youth’, there is a great range of employment and education opportunities attracting young people to the region. The median house price in Bathurst is $420,000, while for units it is just $299,000, delivering an average annual rental yield of 4.3% and 5% respectively. So this could be one of best suburbs to invest in Australia.
Buying a second property can be a solid investment strategy, but only when it is well planned, thoroughly researched and backed up by the right kind of home loan. To find out more about investment property loans, contact the experienced team of mortgage brokers at Coronis Finance.