Real Estate: What to Invest in Australia 2024

Brisbane and Surrounding Areas

As we move into 2024, Brisbane’s property market and its neighboring regions shine as prime areas for high rental yields and notable capital growth. This surge is largely fueled by low vacancy rates, strong demand, and major infrastructure upgrades.

Here’s a guide to top-performing suburbs and regions offering substantial potential:

High-Yield Suburbs: Suburbs within Logan and Ipswich—such as Eagleby, Woodridge, Kingston, and Crestmead—are leading Brisbane’s rental market, delivering yields in the range of 6.1% to 6.3%. Situated between Brisbane and the Gold Coast, these areas benefit from accessibility to employment hubs and relatively low property prices, appealing to renters.

Infrastructure advancements, including motorway improvements, are enhancing both connectivity and desirability in these neighborhoods.

Capital Growth Suburbs: Suburbs closer to Brisbane’s CBD or featuring rich community amenities are experiencing robust capital growth.

Wavell Heights and Nundah, for instance, boast annual growth rates exceeding 10%, attracting young professionals and families alike. Goodna and Petrie are also popular investment choices, with yields over 5%, driven by an affordable housing market and efficient transportation links to Brisbane’s core.

Lifestyle and Long-Term Investment Areas: Neighborhoods like Ashgrove and Cannon Hill cater to higher-income professionals and families, with median property prices exceeding $1 million but stable growth.

These areas are distinguished by quality amenities, parks, and top-tier school catchments, making them desirable for long-term family investments. Similarly, Wilston and Tarragindi pair high rental demand with a strong community allure, likely to appreciate further as Brisbane approaches the 2032 Olympics and benefits from infrastructure projects such as the Brisbane Metro and Cross River Rail.

With Brisbane’s vacancy rates currently under 1% for both houses and units, rents have surged—by approximately 9.3% for houses and 24.8% for units over the last year.

This tight rental market, alongside a substantial influx of interstate migrants, particularly from New South Wales and Victoria, is expected to sustain rental demand and elevate both yields and property values.

For tailored strategies focused on rental income or capital growth in any of these promising areas, don’t hesitate to reach out!

Perth and Regional Western Australia

The Perth and regional Western Australia property markets offer high rental yields and notable capital growth potential. Here’s an overview of some key suburbs and factors fueling this trend:

Perth Suburbs with High Yields: Suburbs like Armadale, Gosnells, and Brookdale stand out for their affordability, delivering rental yields of 6% to 7%. For instance, Armadale’s median property price hovers around $370,000, with a yield close to 7%, attracting local and interstate investors looking for affordable entry points.

Regional Growth: Western Australia’s resource-rich regions, including towns such as Karratha and Geraldton, yield returns in the 6-7% range.

These towns are buoyed by a strong mining economy that drives local employment and an influx of renters.

The Bunbury region, particularly Withers, is also gaining traction, offering yields above 7% while maintaining accessible property prices, keeping investor interest robust.

Capital Growth Potential: Perth’s median property price remains around $646,520, relatively low compared to other major Australian cities. This affordability, combined with high migration and limited housing supply, has boosted both property values and rental rates.

Over the past year, Perth’s house rents surged nearly 20%, driven by low vacancy rates, further enhancing rental yields and positioning Perth for continued growth through 2024.

Demand Factors: A robust economy and relatively affordable property market are drawing both interstate and international migrants to Western Australia. As of March 2023, WA’s population growth rate led the nation at 2.8%. With construction rates low, this influx has heightened demand, maintaining vacancy rates around 1% in many areas, thereby enhancing rental income potential for investors.

These dynamics indicate that Perth and strategic regional areas in Western Australia offer prime investment opportunities, particularly for those seeking properties that deliver reliable rental returns and capital appreciation. Continued growth is anticipated well beyond 2024.

Sydney and Melbourne

Sydney and Melbourne present select suburbs and property types that cater to various investment objectives in 2024. Here’s a breakdown of promising locales:

Sydney: Sydney’s rental market experienced over 17% growth in 2023, pushing up yields in high-demand suburbs. Key rental income hotspots include:

• Arncliffe: Situated near the airport and coastlines, Arncliffe yields about 6.1%, with a low vacancy rate of 1.4%.

• Pleasure Point: Known for its tranquil environment, Pleasure Point delivers a yield of 4.9%, with rent growth reaching 47% this year and a low 0.7% vacancy rate.

• Newington and Rosebery: Both yielding around 4.6-4.7%, these suburbs offer lifestyle amenities and are close to the CBD, making them attractive for tenants seeking convenience and comfort.

Melbourne: Melbourne’s suburbs also offer solid rental yields in 2024, especially for units:

• Outer Suburbs: Werribee and similar areas, where home prices are more affordable, have rental yields over 4%, meeting growing suburban rental demand.

• City-Fringe Suburbs: Carlton and Footscray are noted for yields between 4% and 5% on units, and are conveniently close to urban amenities.

With Sydney’s rental growth outpacing Melbourne due to lower vacancy rates, specific Sydney suburbs may yield stronger immediate returns, while Melbourne’s outer suburbs present balanced growth opportunities with diverse renter demographics.

South Australia and Tasmania

South Australia and Tasmania are attracting investors with high rental yields and capital growth potential in 2024. Here’s an overview of high-performing areas in these regions.

South Australia: Regional towns like Port Augusta and Whyalla lead with yields as high as 8% on houses. In Port Augusta, the median price is around $220,000, generating weekly rents of about $320, making it highly favorable for cash-focused investors.

Other high-yield regions include Port Pirie and Bordertown, where yields hover around 7.2%, driven by demand from transient workers in mining and manufacturing.

Adelaide’s suburbs like Elizabeth North and Salisbury also offer approximately 6.5% for units, supported by lower entry prices.

Tasmania: Hobart and Launceston suburbs provide competitive rental yields, particularly in affordable, growing areas like Rokeby and New Norfolk. Rokeby yields around 4.98% on houses, supported by infrastructure growth in southeastern Hobart.

In Launceston, suburbs like Riverside and East Launceston yield between 4-4.76%, appealing for their lifestyle amenities, scenic views, and proximity to the CBD. East Launceston, in particular, offers capital growth opportunities due to its historical charm and established reputation.

Affordability, low vacancy rates, and strong rental demand drive South Australia and Tasmania’s appeal for investors seeking income and capital appreciation. Let me know if you’d like specific advice on investment strategies in these locations!

Queensland Regional Markets

Regional Queensland presents diverse investment opportunities for high rental yields and capital growth in 2024. Here’s a look at leading regions:

High-Yield Regions: Mining and industrial towns, including Moranbah and Dysart in the Isaac region, deliver yields of 12.5% and 10.8%, respectively.

Other high-yielding locales include Collinsville in the Whitsundays, with a yield of 11.4%, and Koongal in Rockhampton, around 10.2%.

These regions thrive on transient worker populations and affordable housing, typically around the $300,000 mark, making them ideal for cash flow-seeking investors.

Capital Growth Hotspots: Rockhampton, Gladstone, and Bundaberg have seen price gains of around 17-18% over the past year.

Gladstone, with its industrial base and rising infrastructure, has mid-$300,000s to $400,000s median house prices and yields around 6-8%. Bundaberg offers a mix of coastal appeal and affordability, with houses priced near $520,000, presenting steady growth prospects.

Lifestyle Regions with Growth: Sunshine Coast locales such as Golden Beach and Nambour consistently attract demand, with Golden Beach reporting capital growth around 11%, driven by lifestyle amenities.

Toowoomba, with infrastructure upgrades including a new airport and rail links, continues to support property value growth, currently around 14%.

Regional Queensland stands out for affordable entry points, high yields in resource-driven regions, and lifestyle-based growth, positioning it as a top choice for property investors.

Originally Published: https://www.starinvestment.com.au/real-estate-what-to-invest-in-australia/