The suburbs fueling Australia’s impressive property price surge have been highlighted in the latest Domain House Price Report. Capital city house and unit prices continued their upward trajectory with another quarter of gains. This marks the sixth consecutive increase for houses and the fifth for units, reaching new record highs.
Investors are increasingly attracted to suburbs like Caulfield East in Victoria and Orelia in Western Australia, where apartments offer impressive rental yields of 10% and 9.2% respectively. While rental yield is a vital indicator of return on investment from rental income, it is not the sole factor determining a suburb’s success. What causes certain suburbs to experience more rapid or substantial growth than others? Factors such as new infrastructure, strategic location, appealing amenities, and appropriate pricing can significantly enhance a suburb’s growth potential. Investors should evaluate these aspects alongside rental yield to pinpoint suburbs with the most promising long-term prospects.
The suburb of Parkhurst in Queensland has shown an impressive 54.2% increase in median house prices over the last year. Its proximity to the city of Rockhampton, as well as its access to schools, shopping centers, and parks, make it an attractive location for families. Similarly, Gawler South in South Australia has seen a 36.9% increase in median house prices, thanks to its affordable price range as well as its range of quality schools and public transport options.
Investors should also pay attention to upcoming developments and infrastructure projects in their chosen suburb. These can greatly impact property values and rental demand. For example, the construction of a new shopping center or train station near a suburb could potentially increase rental yields and attract more tenants
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Located just 17km from the Brisbane CBD, Manly offers a relaxed coastal lifestyle with popular beaches and marinas. Houses in Manly have seen a 44.9%% jump in median prices over the last year, making it an attractive option for investors looking for capital growth. With a strong rental demand and solid rental yields of 3.2%, Manly is a top choice for investors.
Located on the lower north shore of Sydney, Kirribilli offers stunning views of the Harbour Bridge and city skyline. Apartments in this suburb have seen a 50.4% increase in median prices over the last year. Lifestyle amenities such as cafes, restaurants, and parks make Kirribilli a popular choice for young professionals and families.
Darlington, Western Australia
Not far from the Perth CBD and with a growing population, Darlington offers investors strong capital growth potential. The median house price in this suburb has increased by Up 28.2% over the last year. With its proximity to quality schools, public transport, and recreational facilities, Darlington is an attractive option for families.
Located just 14 km from Sydney’s CBD, units in this suburb have increased in value by a very impressive Up 51.7% over the last year. A popular coastal suburb with beautiful beaches and parks, Little Bay offers a resort-like lifestyle. With strong rental demand and strong yields of 4.3%, it is also an appealing choice for investors.
Kuraby, Queensland
Kuraby is a sought-after suburb in Brisbane’s south with easy access to the CBD and Gold Coast. The median house price has experienced an increase of 27.7% over the last year, making it a prime location for investment. Kuraby also offers a diverse range of amenities including shopping centres, family-friendly parks, and good schools.
The suburbs that top the list in 2024 are a mix of both metropolitan and regional areas, showcasing the diverse range of investment opportunities in Australia. With strong capital growth potential, appealing lifestyle factors and a variety of amenities, these suburbs are set to continue their upward trend in the coming years. However, the next property hotspot will be the one that offers the ideal balance of location, affordability and growth potential. By researching and staying ahead of market trends, investors can make informed decisions and find the next up-and-coming suburb for their investment portfolio.
Australia’s top-performing suburbs, including Parkhurst, Kirribilli, and Darlington, have demonstrated strong capital growth and remain attractive for investors seeking long-term returns. Investing in these areas requires a strategic approach, taking into account various factors such as location, amenities, price range, rental yield, and potential for future growth.
Find out more: property selection process
At Ironfish, we can guide your investment decisions and help you add a top-performing investment property to your portfolio with our expertise, research, and market insights. Don’t miss the opportunity to invest in the best performing suburbs and reap the benefits for years to come.
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