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Where are the best places to invest in Australia right now? Is Sydney still the top pick, or are cities like Brisbane, Adelaide, and Hobart gaining ground? What makes these locations attractive to both local and foreign investors?
We’re often asked these questions because we work directly with real estate agents, property developers, and clients who invest across the country. Our firsthand experience in these markets gives us unique insights into where the real opportunities lie. To save everyone from asking privately, we’ve written this article to share our knowledge broadly.
Our goal is to highlight the hottest markets in Australia and explain why they’re worth your attention in 2025.
If you have suggestions or want us to dive deeper into a specific area, let us know. You shoot an email, we answer within 24 hours.
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1) Hobart, Tasmania is booming with limited housing supply and rising demand driving up property values
Hobart, Tasmania, is still a hot spot for real estate in 2025.
With limited housing supply, buyers are in fierce competition, often paying more than the asking price. This has led to rising property values, making Hobart a sought-after market. In 2024, the median house price hit a record $940,000, an 11% jump from the previous year. Suburban areas like Sandy Bay saw even higher prices, with a median of $1.4 million, reflecting a 9% rise compared to 2023.
The rental market is also feeling the heat, with vacancy rates dropping to a mere 0.6% in September 2024. This means rental properties are scarce, pushing demand and prices even higher. The median weekly rent for a house in Hobart climbed by 7% over the past year, reaching $600.
Sources: Tasmanian Property Market Continues to Soar in September 2024, Forecast: Up to $21k could be added to Hobart's typical house
2) Ballarat, Victoria, is booming with affordable housing compared to Melbourne, attracting first-time buyers and investors
Ballarat, Victoria, is catching the eye of property buyers thanks to its affordable housing prices compared to Melbourne.
In 2024, the median house price in Ballarat was $555,000, a stark contrast to Melbourne's $840,000. This price gap is a magnet for first-time buyers and investors hunting for budget-friendly options.
Between the first and second quarters of 2024, Ballarat's property market saw a 2.8% rise in median house prices. This steady growth reflects a healthy demand, with house sales jumping by 9.6% in Q2 2024 compared to the same time in 2023.
Investors are also eyeing Ballarat's rental market, which promises solid returns. As of June 2024, the rental yield for houses in Ballarat was 3.7%, outpacing both the Ballarat LGA and Melbourne Metro.
These factors make Ballarat a compelling choice for those seeking better investment returns. The city's combination of affordability and growth potential is hard to ignore.
Sources: PRD Ballarat Market Update 2nd Half 2024, PRD Ballarat Property Market Update 2nd Half 2024, Savings.com.au - Rental Yield in Victoria
We made this infographic to show you how property prices in Australia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
3) Wollongong, New South Wales, is gaining attention for its coastal lifestyle and strong rental market driven by a growing student population
Wollongong, New South Wales, is catching eyes for its stunning coastal lifestyle and booming rental market.
In the last ten years, property prices in Wollongong have skyrocketed by 118%, leaving many other regional cities in the dust. This surge shows just how desirable and economically promising the city has become.
The rental scene here is buzzing, with vacancy rates dipping below 1% and rents climbing 7.4% in a single year. This high demand makes Wollongong a hot spot for investors, even if rental yields aren't the highest around.
Fueling this growth is the influx of students, thanks to the University of Wollongong's rising popularity. Since 2017, the university has seen a 40% jump in Early Admission applications, cementing the city's status as a lively educational center.
Wollongong's charm lies in its coastal lifestyle, offering beautiful beaches and lush national parks that attract young families and professionals alike. Australians' love for coastal living is well-documented, adding to the area's allure.
Sources: InvestorKit, University of Wollongong, Realestate
4) Geelong, Victoria, is gaining interest for its capital growth potential and commuter-friendly proximity to Melbourne
Geelong, Victoria, is becoming a hot spot for home buyers.
In recent years, property prices in Geelong have been climbing steadily, with dwelling values reaching $728,000 by November 2024. This upward trend highlights Geelong's strong potential for capital growth, making it an attractive option for investors and home buyers alike.
One of the key reasons for Geelong's growing popularity is its proximity to Melbourne. The $1.8 billion upgrade of the Princes Freeway has significantly improved the commute, making it faster and more convenient for those who work in the city but prefer the laid-back vibe of Geelong.
Geelong offers more than just convenience; it promises a desirable lifestyle. With its close proximity to the stunning Great Ocean Road and beautiful beaches, residents can enjoy a coastal lifestyle that many find irresistible. This blend of lifestyle and accessibility to Melbourne is a major draw for potential buyers.
For those considering a move, Geelong's appeal is clear. The city combines the best of both worlds: a relaxed coastal lifestyle with the benefits of being near a major city. This makes it a top choice for those looking to balance work and leisure.
Sources: Realestate.com.au, RDV Victoria, Property Markets News
5) Newcastle, New South Wales, is attracting interest with high rental yields and urban development projects enhancing its appeal
Newcastle, New South Wales, is becoming a hot spot for property buyers due to its high rental yields and exciting urban development projects.
While a rental yield of 3.8% might not seem extraordinary, it's the rising rental prices and stable sale prices that are making it attractive. Units, in particular, are doing well with a rental yield of 3.9%, showing a promising trend for investors.
One big draw for Newcastle is its low rental vacancy rate of around 1%. This is much lower than the 2% mark that signals a tight rental market, meaning there's strong demand for rentals here. Over the last ten years, rental prices have jumped by 61.5%, which is in line with other major regional cities.
Newcastle is also buzzing with urban development. The city is pouring nearly $377 million into community infrastructure for the 2023-2024 financial year. Projects like upgrading the Newcastle Ocean Baths and expanding the Newcastle Art Gallery are part of this big push.
These developments are not just about beautifying the city; they're also about boosting jobs in key areas like health, education, and tourism. The construction of a new organics facility is another step in this direction, aiming to enhance the city's infrastructure.
Sources: InvestorKit, City of Newcastle, WiseBuy Group
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6) Mandurah, Western Australia, is gaining interest for its affordable coastal properties and growth potential as Perth expands
Mandurah, Western Australia, is becoming a hot spot for property buyers due to its affordable coastal properties and potential growth as Perth expands.
In recent years, Mandurah has seen a 71.1% increase in property sales since March 2020, with values rising by 20.1% annually. This boom is largely fueled by Eastern State retirees and first-time buyers from the city seeking new opportunities.
The median house price in Mandurah is now $470,000, marking a 26.2% annual capital growth. Despite this rise, it's still cheaper than Perth, making it a great choice for those wanting a coastal lifestyle without breaking the bank.
Mandurah has been named Australia's top regional property hot spot due to investor activity, capital growth, and rental yields. This recognition is drawing even more interest from potential buyers.
Infrastructure projects like the Mandurah Estuary Bridge duplication are improving connectivity to Perth, making Mandurah more appealing for those who want a coastal life but need city access. These developments are part of ongoing government efforts to boost local employment and infrastructure.
With these enhancements, Mandurah is becoming increasingly attractive, offering a blend of coastal charm and urban convenience that is hard to resist.
Sources: The West Australian, WA Government, Perth Now
7) Bendigo, Victoria, is attracting investors with affordable property prices and strong rental demand from its growing population
Bendigo, Victoria, is catching the eye of investors with its affordable property prices and strong rental demand.
With a median house price of $598,000, Bendigo offers a budget-friendly alternative to Melbourne's hefty $1.1 million. This affordability, along with a 4.2% rise in property prices from last year, shows a healthy and growing real estate market. The city's charm isn't just in its prices; it's also in the numbers.
Rental demand is thriving here, thanks to low vacancy rates that lead to competitive rental yields. Bendigo's population has been steadily climbing, reaching 128,563 as of June 2024, with an average growth rate of 1.80% over the past 12 years. This steady influx of new residents keeps the rental market buzzing.
Infrastructure is another big draw. The city is seeing major developments like the $75 million expansion of Bendigo Airport and significant transport upgrades. These projects not only improve connectivity but also attract new residents and businesses, further boosting the rental market.
Government investment in regional development is also a key factor. By supporting infrastructure projects and community amenities, the government enhances the quality of life and economic stability in Bendigo. This makes the city even more appealing to both investors and potential residents.
Sources: Population.net.au, LeverageEdu, Broker News
8) Launceston, Tasmania, is gaining interest for its low property prices and rising rental demand from students and professionals
Launceston, Tasmania, is quickly becoming a hot spot for property buyers due to its affordable housing prices and rising rental demand.
In recent years, Launceston's property market has experienced a rise in median house prices, yet they remain more affordable than many other regions. For instance, the median house price in Launceston is around $560,000, which is still a bargain compared to other areas. This affordability is a magnet for first-time homebuyers and investors looking for value.
The rental market in Launceston is buzzing, with a low vacancy rate of just 1.5%, much lower than the national average. This strong demand is partly due to the growing number of students at the University of Tasmania's Launceston campus. Professionals are also flocking to the city, drawn by its appealing work-life balance, which further fuels rental demand.
Launceston is also benefiting from significant government investment in infrastructure. These projects are not only enhancing the city's appeal but are also expected to attract more residents and businesses. This influx is likely to boost the local economy and drive up property prices and rental yields.
With its combination of low property prices and increasing rental demand, Launceston is becoming a prime location for property investment. The city's unique blend of affordability and growth potential makes it an attractive option for both homebuyers and investors.
Sources: Smart Property Investment, A Home Rentals
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Australia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
9) Toowoomba, Queensland, is gaining attention for its affordable real estate and strong rental yields fueled by regional economic growth
Toowoomba, Queensland is becoming a hot spot for affordable real estate and strong rental yields.
In recent years, Toowoomba's property market has stood out because of its affordability. For instance, the median house price in Toowoomba was around $645,000, which is quite a bit lower than Brisbane's $870,000. This price difference makes Toowoomba an appealing choice for both homebuyers and investors looking for value.
Investors are particularly drawn to Toowoomba because of its impressive rental yields. The median rental yield for houses in Toowoomba was 5.0%, outpacing Brisbane's 3.7%. This means that property investors can expect better returns here compared to larger cities, thanks to a robust rental market and low vacancy rates.
Toowoomba's economic growth is another key factor in its rising popularity. Major infrastructure projects, like the Toowoomba Second Range Crossing, have boosted connectivity and economic prospects. This has led to a surge in job opportunities, with over 7,000 new roles anticipated in sectors such as healthcare, retail, education, and social assistance.
The economic activity in Toowoomba has also spurred steady population growth. The region's population has been increasing consistently over the years, further fueling demand for housing and rental properties.
With its combination of affordable housing, strong rental yields, and economic growth, Toowoomba is becoming an increasingly attractive option for property buyers and investors. The city's development and job market expansion are key drivers of this trend.
Sources: Tomoro, Savings.com.au, Population.net.au, Live Toowoomba
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.