What Makes a Suburb Top-Performing?

Discerning investors should take note of the following key indicators that contribute to a suburb’s growth potential:

• Proximity to key amenities such as public transport, schools and shops
• Infrastructure developments, such as new roads or train lines
• Demand for housing in the area, with low vacancy rates and high rental yields being favourable
• Median house price growth over time, indicating a strong market performance.

Employment and lifestyle opportunities

The presence of diverse job opportunities in a suburb can create a strong rental market, as individuals move to the area for work, thus increasing demand for housing and potential rental yields. Equally important are new developments within a suburb. These can dramatically improve the attractiveness and convenience of the area, drawing in more prospective residents. For instance, the introduction of new office complexes, shopping centres, or recreational facilities can significantly enhance the lifestyle potential of a suburb, thereby driving up property values.

8 Top Performing Suburbs in Australia

Here are the top-performing suburbs according to Domain’s latest report:

Sydney

Milsons Point

Located in the Lower North Shore region, just 3km from the CBD, Milsons Point is a highly desirable suburb with stunning views of Sydney Harbor and an abundance of amenities. With a median unit price of $2.5 million and an impressive annual growth rate of 25%, Milsons Point is a top performer in the Sydney property market.

Matraville

Located in Sydney’s Eastern Suburbs, Matraville also ranks highly with a median unit price of $835,000 and an annual growth rate of 10.6%. With easy access to the CBD, picturesque beaches, and a lively community atmosphere, Matraville is a popular choice for investors and renters alike.

Rockdale

Situated just 13km south of Sydney’s CBD, Rockdale has excellent connectivity to the city via public transport and major road networks. The suburb also boasts a range of amenities, including shopping centers, schools, and parks. With a median unit price of $700,00 and an annual growth rate of 7.7%, Rockdale offers strong potential for investors seeking steady returns.

Melbourne

Caulfield South

Known for its leafy streets and family-friendly atmosphere, Caulfield South is a popular choice for families and young professionals. The suburb offers easy access to the CBD, excellent schools, and an array of cafes and restaurants. With a median unit price of $785,000 and an excellent annual growth rate of 23.20%, Caulfield South is one of Melbourne’s top-performing suburbs in the property market.

Armadale

Located in the prestigious Stonnington area, Armadale boasts excellent public transport links to the CBD and surrounding areas. The current media house price in Armadale is $2.72 million, up 10.5% from the previous year. With a high demand for rental properties, Armadale is a top pick for investors looking for strong capital growth and high rental yields in Melbourne.

Kew

Kew, a vibrant suburb in Melbourne, takes the top spot on the list with the highest median house price. With prices soaring up to $2.78 million, this represents a significant annual increase of 9.9%. Well-connected to the city and renowned for its green spaces and top-tier schools, Kew’s property market shows a strong appeal to both families and investors, indicating promising potential for continuous growth in the upcoming years.

Brisbane

Alderley

Located just 5.4km from the CBD, Alderley is an up-and-coming suburb in Brisbane. It offers a mix of traditional Queensland homes and modern units, making it a popular choice for a wide range of renters and buyers. The median unit price in Alderley stands at $557,750, representing an impressive annual growth rate of 25.10%. This strong capital growth, combined with its close proximity to the city, makes Alderley an attractive option for property investors.

Carseldine

Carseldine, a suburb situated 13.7km from Brisbane’s CBD, presents yet another attractive prospect for property investors. It has an appealing blend of residential units and townhouses that are popular with a diverse pool of potential renters and buyers. The current median unit price in Carseldine is $522,500, which represents a strong annual growth rate of 24.40%.

5 High Rental Yield Suburbs Australia in 2023

A good rental yield for Australian capital city suburbs falls between 5 and 7%. However, some suburbs are outperforming this benchmark by offering even higher rental yields. Based on the latest data from CoreLogic, here are five of the best high rental yield suburbs in Australia to consider for investment in 2023:

Elizabeth North, Adelaide

Elizabeth North, located in the northern region of Adelaide offers an impressive return of 8.3%. This high rental yield coupled with an affordable median house price of $322,500 makes it a top choice for investors looking for positive cash flow.

Elizabeth Downs, Adelaide

Elizabeth Downs is another northern suburb of Adelaide that boasts a high rental yield of 7.7%. The median house price in this area is $370,500, making it an affordable option for investors looking to enter the market.

Cooloongup, Perth

Cooloongup, a suburb situated in the South West region of Perth, is an attractive property investment option due to its high rental yield of 7.1%. This significant yield, well above the capital city average, underlines the strong potential of this suburb.

Brookdale, Perth – South East

Brookdale, located in the South East region of Perth, offers investors a 6.9% rental yield. Its competitive property values and potential for steady rental income make Brookdale a noteworthy consideration for investors.

Riverview, Ipswich

Riverview, a suburb located in the Ipswich region, boasts a healthy rental yield of 6.9%, making it a lucrative option for property investors. The median weekly rent in Riverview is $317, with a median house price of $416,000. Riverview’s affordable entry point and strong rental yield make it an attractive option for investors looking for good returns.

Conclusion

The property market landscape in Australia is evolving, and the keys to success lie in understanding the subtleties of growth indicators and making informed decisions. With careful research and strategic planning, investors can find opportunities in the Australian property market that offer high rental yields and excellent potential for capital growth.

At Ironfish, our team of experienced property strategists can help you navigate the market and make informed investment decisions. Contact us today to find out more about the best property investment opportunities in Australia.

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