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Are you considering investing in Australian real estate and want to know where the hottest markets will be in 2025? Curious about which areas are set to boom and offer the best returns on your investment? Wondering how to make a smart property purchase that aligns with future growth trends?
We will lay down recent insights, providing you with a clear roadmap to the most promising real estate hotspots. Here, no guesswork, we rely only on solid data to guide your investment decisions.
Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the Australia Property Pack
1) Hobart Tasmania's limited housing and high demand drive property values up making it a hot market
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 sees a property demand surge due to affordable housing compared to Melbourne attracting 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
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3) Wollongong New South Wales attracts interest for its coastal lifestyle strong rental market and 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 attracts buyers with strong capital growth potential and proximity to Melbourne making it commuter-friendly
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 attention for high rental yields and urban development projects boosting 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 sees rising property interest due to 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 attracts investors with affordable property prices and strong rental demand from a 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 a hot market with 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
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9) Toowoomba Queensland is booming with affordable real estate and strong rental yields due to 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
10) Adelaide Hills South Australia attracts buyers with its scenic living and property appreciation as people leave city centers
Adelaide Hills in South Australia is becoming a popular choice for homebuyers due to its stunning living environment and potential for property value growth.
In 2024, property values in the area jumped by 14.41%, far outpacing the national average. This surge highlights the growing interest in the region, making it a real estate hot spot. The area offers a unique blend of rural charm and city conveniences, attracting families, young professionals, and retirees alike.
The demand for homes is strong, with a vibrant rental market and low vacancy rates. Investors are particularly keen, eyeing the area for its promising rental returns and future property appreciation. The lifestyle here is a big draw, offering a peaceful retreat with easy access to urban amenities.
Population growth in the Adelaide Hills has been steady, with a 1.05% increase in 2023. This reflects a broader trend of people moving away from city centers, especially as remote work becomes more common. The area's natural beauty and quality of life are major attractions for those seeking a scenic and tranquil place to live.
Local infrastructure projects are enhancing the area's appeal, making it even more accessible and convenient for residents. These developments are expected to further boost property values and attract more buyers. The combination of natural beauty, lifestyle, and growth potential makes Adelaide Hills a compelling choice for homebuyers.
As more people discover the charm of Adelaide Hills, the region is poised for continued growth and development. The area's unique blend of rural and urban living, coupled with its strong property market, makes it an attractive option for those looking to invest in a home.
Sources: Adelaide Hills Real Estate Market Trends: A 2024 update, Estimated Resident Population (ERP) | Adelaide Hills Council, 5 infrastructure projects happening in SA now
11) Sunshine Coast Queensland property values are soaring as demand for coastal living and strong rental yields increase
The Sunshine Coast in Queensland is seeing rapid property appreciation as more people seek coastal living with strong rental yields.
Over the past five years, the Sunshine Coast has experienced a 71.4% growth in median sales prices, making it one of the top areas for price growth in Queensland and the fourth most expensive in Australia. This trend is expected to continue, with forecasts for 2025 predicting house prices to rise by 2-5% and unit prices by 4-6% due to increasing demand and limited housing stock.
People are flocking to the Sunshine Coast for its coastal lifestyle, contributing to its status as one of the fastest-growing regions in the country. Since 2011, the population has increased by 30%, driven by both overseas and interstate migration. In the year leading up to September 2023, more than 120,000 people moved to Queensland, highlighting the region's appeal as a desirable living destination.
For property investors, the Sunshine Coast offers strong rental yields. The region boasts a low vacancy rate of just 1.1%, indicating strong rental demand. Areas like Mountain Creek and Maroochydore are particularly attractive, with Mountain Creek reporting a vacancy rate of 0.8% and an average rental yield of 4.1% for houses and 4.7% for units.
These figures demonstrate the potential for high returns on investment in the area. The Sunshine Coast's property market is thriving, with its combination of lifestyle appeal and investment potential making it a hotspot for buyers.
As more people discover the benefits of living on the Sunshine Coast, the demand for property is likely to remain strong, further driving up prices and rental yields. The region's growth is a testament to its appeal, offering a unique blend of coastal living and investment opportunities.
Sources: Sunshine Coast Property Price Forecast for FY 2025, Overseas and Interstate Migration Contributes to..., Sunshine Coast Property Market: Insights & Forecast for 2024, Property Prices on the Coast Among Highest in Nation
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.