Best Suburbs to Invest in Australia for 2025

This post looks at the best suburbs to invest in Australia for 2025, focusing on regional areas, capital cities and lifestyle driven areas.

Check out affordable suburbs with strong rental yields like Geraldton, Port Augusta and Rockhampton with multiple economic drivers for growth.

From coastal towns like Golden Beach to South Australia and Tasmania, find high potential areas for long term investment success in 2025.

Regional Hotspots

Investing in regional Australian property is on the rise as buyers look for affordability, high rental yields and growth. These regions are great for investors looking to diversify their portfolio. Below we break down why these hotspots will be winners in 2025.

Why Geraldton, WA is a Top Investment

Affordability Meets High Rental Yields

Geraldton’s median house price of $346,500 makes it an affordable market for investors. Rental yields over 6% is the icing on the cake, providing steady cash flow. For those looking to get into the property market Geraldton offers a rare combination of affordability and returns that few markets can match.

Thriving Local Economy Drives Demand

A mining, agriculture and renewable energy based economy provides a solid foundation for Geraldton’s housing market. These industries create employment opportunities, population growth and housing demand. Investors have a stable tenant base due to the city’s diverse economy.

Infrastructure and Lifestyle

Geraldton’s infrastructure upgrades are improving connectivity and liveability. Its waterfront and recreational attractions are drawing families and retirees looking for a lifestyle change. As part of the Exodus to Affordable Lifestyle trend Geraldton stands out for its modern amenities and coastal lifestyle.

Rockhampton, QLD: The Beef Capital’s Rental Boom

Unmatched Rental Returns

With a median house price of $235,000, Rockhampton is very affordable. Investors are further rewarded with rental yields of 8.3% making it cash flow heaven. Low entry costs and high returns make it a no brainer for cash flow investors looking for immediate returns.

Multiple Economic Drivers

Rockhampton’s economy is built around agriculture, particularly cattle farming, hence the nickname “Beef Capital of Australia”. With mining and education sectors, the city has economic resilience. This diversity means rental demand is consistent even during economic downturns, providing investors with long term stability.

Population Growth

Rockhampton’s population is growing steadily driven by regional migration and jobs. This demographic trend means rental demand is sustained and the market is good for investors. A growing tenant base means low vacancy rates and Rockhampton is a high yielding hotspot.

Mount Gambier, SA: Beautiful and Profitable

Price and Rent Growth

Mount Gambier has seen 12.6% property price growth in the last 12 months. Median weekly rents have also risen 8.1% to $400. With both capital and rental growth this is a great opportunity for investors to get in on the growth trend.

Close to Iconic Wine Regions

Located near South Australia’s wine regions, Mount Gambier attracts professionals and families looking for a premium lifestyle. Its scenic views and cultural attractions make it desirable for renters and buyers looking for a beautiful and practical place to live.

Multiple Economic Drivers

Tourism and manufacturing are the backbone of Mount Gambier’s economy creating jobs and housing demand. The city’s diverse economy means the housing market is stable and profitable for long term property investment.

Port Augusta, SA: High Yielder

Low Entry Point

Port Augusta’s median house price of $220,000 is one of the lowest in SA, it’s an entry level market for first time investors. This affordability combined with high rental yields means you can get positive cash flow with minimal risk, it’s a great starting point.

High Rental Yields

Rental yields in Port Augusta can be up to 8% compared to many urban areas. These yields are perfect for cash flow investors. Low entry prices and high yields means steady income and big upside in the years to come.

Economic Stability through Industry

Port Augusta’s economy is driven by mining, renewable energy and infrastructure projects. These industries bring in transient workers and creates constant demand for rental properties. This means consistent occupancy rates and a steady income stream for property investors.

Toowoomba, QLD: Infrastructure driven growth

Major Infrastructure

Recent infrastructure projects including a new airport and upgraded rail links are transforming Toowoomba’s connectivity. These developments make Toowoomba a regional hub for business and lifestyle and attracting a growing population of renters and buyers looking for modern amenities.

Urban Amenities and Lifestyle

Toowoomba is a rare combination of urban living and country lifestyle. With high quality education, healthcare and cultural attractions it’s a magnet for families and professionals. Close to Brisbane means you can have city access without the congestion.

House Price Growth

Toowoomba’s median house price of $547,550 is driven by demand and growth potential. The area has seen steady price growth so it’s a good option for investors looking for long term capital growth and stable rental income.

Muswellbrook, NSW: Hunter Valley’s best kept secret

Hunter Valley Location

2.5 hours from Sydney and Newcastle Muswellbrook is the perfect balance of accessibility and affordability. Located in the Hunter Valley, one of the world’s most famous wine regions makes it attractive to tenants and buyers looking for proximity to major cities.

Economic Diversification

Muswellbrook is driven by coal mining, agriculture and renewable energy. Economic diversification means stable job creation and housing demand. Investors benefit from a market that’s resilient even when one industry goes through a downturn.

Affordable Median House Price

Muswellbrook’s median house price of $485,000 is an affordable option in NSW. With 5.1% rental yields it’s a balanced option for capital growth and steady income for investors looking for stability and growth.

Capital City Suburbs

Investing in capital city suburbs is a mix of growth, demand and lifestyle. These areas have urban convenience and good returns, they’re the go to places for smart investors. Below we explore why these suburbs are good for 2025.

Arncliffe, Sydney, NSW: Inner South gateway

Affordable Growth

Arncliffe is a rare opportunity in Sydney’s tight market with a median house price of $1.35 million. It’s the most affordable entry point compared to surrounding suburbs, Arncliffe attracts young professionals and families. Investors will benefit from strong rental demand in a suburb that’s going to see steady price growth.

Connectivity and Development

9 km from Sydney CBD, Arncliffe has good transport links, major train stations and motorways close by. Ongoing infrastructure upgrades including road expansions and residential developments will drive long term capital growth and tenant interest.

Lifestyle Diversity

Arncliffe’s parks, cultural diversity and modern amenities makes it a great location. Close to Brighton-Le-Sands and the inner city means it’s urban living with a relaxed lifestyle, good for renters and buyers.

Rosebery, Sydney, NSW: Inner city with growth potential

High Rental Demand

6 km from Sydney CBD, Rosebery has consistent rental demand. The suburb’s median house price of $1.8 million is premium. Investors get 3.5% rental yields and strong tenant interest in the area’s convenience and lifestyle.

Emerging Lifestyle Precinct

Rosebery has become a lifestyle hub with trendy cafes, boutique retail and creative spaces. Its appeal to professionals and creatives is driving housing demand and ongoing urban renewal is making it more attractive for investors.

Infrastructure driven growth

Close to major roads and public transport, Rosebery has easy connectivity. The Green Square precinct upgrades will drive growth and investors will have opportunities to get in on a growing suburb.

Werribee, Melbourne, VIC: Growth corridor gem

Affordable Entry

Werribee is one of Melbourne’s most affordable entry points with a median house price of $625,000. Its affordability and 4.3% rental yields makes it a great option for first time investors looking for growth and cash flow.

Expanding Infrastructure

In Melbourne’s western growth corridor, Werribee has major infrastructure projects including road upgrades and the expansion of Werribee Mercy Hospital. These will drive population growth and housing demand and create a great market for investors.

Lifestyle and Connectivity

Werribee’s proximity to Werribee Open Range Zoo and Pacific Werribee Shopping Centre makes it a lifestyle location. Between Melbourne and Geelong means it’s convenient, families and professionals want affordability and accessibility.

Carlton, Melbourne, VIC: Inner city heritage with modern appeal

Growth and Returns

Carlton’s median house price of $1.2 million is premium. Known for its heritage, the suburb offers capital growth and steady rental income. 3.1% rental yields means reliable cash flow.

Educational and Cultural Precinct

University of Melbourne and Lygon Street means students and professionals live here. The vibrant dining and cultural scene drives tenant demand and low vacancy rates.

Close to the City

Carlton is just 2 km from Melbourne CBD. Its urban convenience and heritage charm means consistent demand from renters and buyers looking for inner city living.

Salisbury, Adelaide, SA: Northern suburbs on the rise

Affordable and High Yield

Median house price $465,000 and 5.2% rental yields means Salisbury is a great investment option. Affordable and high yielding is what investors are looking for.

Diversified Economy and Growth

Salisbury’s economy is backed by manufacturing, defence and logistics. This economic stability means steady employment and housing demand and consistent rental income for investors.

Close to Amenities

Salisbury’s appeal is further enhanced by its proximity to schools, shopping centres and healthcare facilities. 25 minutes from Adelaide CBD means a growing tenant base and long term growth.

High End

East Perth’s riverfront and high end developments makes it one of Perth’s most sought after suburbs. Median house price of $1.15 million means it’s for premium buyers and renters looking for luxury and convenience.

Lifestyle and Urban Amenities

The suburb has a lively mix of cafes, restaurants and waterfront attractions which appeals to young professionals and downsizers. Walkability and public transport means strong tenant interest.

Growth

Close to Perth CBD and ongoing residential developments means growth opportunities. Investors can get in on the suburb’s premium positioning and consistent rental demand for long term gains.

These capital city suburbs offer a mix of affordability, growth and lifestyle, making them the perfect options for property investment in 2025.

South Australia and Tasmania

Investors are looking to South Australia and Tasmania for affordability, growth and lifestyle. These regions have untapped opportunities for property investors looking for value and diversity in 2025.

Port Augusta, SA: Low cost entry into a growing market

Low cost and High Yield

Port Augusta has a median house price of $225,000, one of the cheapest entry points in South Australia. 7.5% rental yields means consistent returns for cash flow investors.

Energy projects driving growth

A hub for renewable energy projects, Port Augusta attracts professionals and transient workers looking for rental accommodation. Consistent demand means minimal vacancy rates, perfect for stable income.

Strategic regional location

Port Augusta is the gateway to South Australia’s Outback. Proximity to mining, tourism and agriculture means a balanced tenant base and long term investment security.

Elizabeth North, Adelaide, SA: Northern suburbs with upside

Elizabeth North has a median house price of $340,000, one of Adelaide’s most affordable suburbs. Rental yields often above 5% means it’s for investors looking for affordability and steady income.

Infrastructure and Amenities growth

New retail, schools and healthcare facilities are turning Elizabeth North into an urban hub. These improvements means it’s more appealing to families and young professionals, driving housing demand and property values up.

Strong tenant demand

With major employment zones and public transport close by, Elizabeth North has a stable tenant base. Investors get consistent occupancy and long term growth in the northern corridor of Adelaide.

Salisbury, Adelaide, SA: Suburban hotspot

Family friendly destination

Salisbury’s affordability and family appeal makes it a great option for property investment. With house prices averaging $470,000 it’s a balance of accessibility and capital growth.

Employment growth

Close to Adelaide’s industrial and defence sectors means a steady stream of workers looking for housing in Salisbury. Economic stability means rental demand and sustainable returns for property investors.

Community driven growth

New recreational facilities, parks and shopping precincts are elevating Salisbury’s lifestyle. These means it’s a growth suburb in Adelaide’s northern suburbs.

New Norfolk, TAS: Tasmanian beauty

Affordable and pretty

New Norfolk has affordability and scenery, with a median house price of $465,000. In Tasmania’s Derwent Valley it’s a popular spot for families and retirees, so diverse tenant demand.

Tourism and agriculture backbone

Strong employment in tourism and agriculture means population growth in New Norfolk. The area’s reliance on these stable industries means consistent rental demand, less risk for landlords.

Lifestyle and heritage appeal

Historic charm and proximity to Hobart means New Norfolk is a popular spot. Riverfront lifestyle and boutique shopping precincts means investors get capital growth and steady income.

Rokeby, TAS: Urban renewal with high returns

Affordable and growing fast

Rokeby’s median house price of $475,000 means it’s affordable in Tasmania’s competitive market. 6% rental yields means it’s a great option for investors looking for high returns and low vacancy.

Close to Hobart

11 km from Hobart, Rokeby gets the benefits of the city’s growth but still has the suburb feel. Means it’s a hot spot for renters looking for convenience and affordability.

Renewal driving demand

Urban renewal in Rokeby is turning the area into a liveable community. New developments and amenities means young professionals and families are moving in, property values and rental demand is growing.

Launceston, TAS: Regional powerhouse

Consistent growth and affordability

Launceston has affordability and growth, with a median house price of $585,000. It’s a balance of value and demand means it’s a top market for investors in 2025.

Education and healthcare hub

As Tasmania’s second city, Launceston has strong employment sectors including education and healthcare. These industries means a steady tenant base of professionals, means long term stability for property investors.

Cultural and lifestyle attractions

Launceston’s food scene, heritage buildings and natural attractions means it’s a hot spot for renters and buyers. Its timeless appeal means demand is consistent, means it’s a top investment spot in Tasmania.

Queensland lifestyle growth

Queensland is attracting investors with its property market, beautiful landscapes and growing population. These suburbs are great for growth and lifestyle investment in 2025.

Golden Beach, Sunshine Coast: Luxury beach living and investment

Golden Beach has a median house price of $980,000, it’s a luxury beachside area. High demand means steady property growth, means it’s a popular investment option.

Tourism driven economy

As part of the Sunshine Coast, Golden Beach gets the benefits of a booming tourism industry. Being close to beaches and local attractions means rental demand is high, especially from holiday makers and long term tenants.

Lifestyle and infrastructure appeal

Golden Beach has a laid back vibe with modern amenities, from waterfront dining to parks. The Sunshine Coast’s ongoing infrastructure upgrades, like improved transport links, means it’s getting more connected and desirable.

Nambour, Sunshine Coast: The affordable lifestyle hub

Budget option

Nambour’s median house price of $620,000 means it’s an affordable option on the Sunshine Coast. Its affordability and charm means first time investors and experienced buyers are both drawn to it.

Community vibe

Known for its bustling markets and friendly feel, Nambour is a family and professional haven. The strong sense of community means long term rental demand.

Central location

Nambour’s position near major hubs means easy access to the rest of the Sunshine Coast. Its affordability and accessibility means it’s a secret gem for smart property investors.

Bundaberg: High yields in a regional gem

High rental returns

With rental yields over 6% Bundaberg is one of Queensland’s highest cash flow opportunities. The median house price of $450,000 means it’s accessible to new and experienced investors.

Diverse economy

Bundaberg is driven by agriculture, tourism and healthcare industries, means steady employment and housing demand. The region’s sugar and rum production heritage is a unique selling point for both residents and tourists.

Lifestyle and growth

Bundaberg has a laid back lifestyle and growth opportunities. Being close to beaches and the Great Barrier Reef means it’s in high demand from tenants who want comfort and convenience.

Gladstone: Industrial hub with high returns

Affordable investment option

Gladstone’s median house price of $390,000 means it’s an affordable investment. Robust rental yields, often over 7% means consistent cash flow and great value.

Industry driven stability

As a major port city Gladstone’s economy is driven by industries like mining, LNG and manufacturing. This diversity of industry means workers are looking for quality housing, means low vacancy rates.

Infrastructure and regional appeal

Gladstone is getting infrastructure upgrades to improve connectivity and liveability. Strong community focus and proximity to Heron Island means it’s getting more desirable.

South Toowoomba: Regional growth hotspot

Price growth

South Toowoomba’s median house price of $500,000 means it’s on an upward trend. The balance of affordability and growing demand means it’s perfect for long term investors.

Education and healthcare hub

Being close to major educational institutions and healthcare facilities means housing demand from students and professionals. Means consistent tenant interest and stable returns.

Charming lifestyle

South Toowoomba has heritage charm and modern amenities. Leafy streets, parks and cultural events means it’s a popular area for families and retirees, means it’s a great investment area.

Originally Published: https://www.starinvestment.com.au/where-to-invest-australia-2025-suburbs/