Investors looking to buy property in the new year have received a helping hand from a panel of property experts amid a hand-selected list of 100 suburbs set to outperform in 2024.
The Hot 100 suburbs to watch in 2024 initiative brought together 17 industry experts – including the heads of major agency groups, buyer’s agents, researchers, investors and PropTrack economists - to identify the suburbs to watch in the new year.
Suburbs were nominated based on factors such as affordability, location, family appeal and investment and infrastructure projects.
Rental yield is a key factor when looking for an investment property; and currently, units offer the highest return.
Units in Armadale, Perth, offer a median rental yield of 7.7% and have also experienced double-digit price growth in the past 12 months.
| Suburb | State | GCCSA | Property type | Median weekly advertised rent | 12-month change in median weekly advertised rent | Rental Yield |
| Armadale | WA | Greater Perth | Unit | $415 | 18.6% | 7.7% |
| Geraldton | WA | Rest of WA | Unit | $260 | 4.0% | 7.7% |
| Gladstone Central | QLD | Rest of Qld | Unit | $350 | 3.7% | 7.4% |
| Darwin City | NT | Greater Darwin | Unit | $600 | 3.4% | 7.3% |
| Whyalla | SA | Rest of SA | Unit | $230 | -4.2% | 7.2% |
| Townsville City | QLD | Rest of Qld | Unit | $450 | 7.1% | 7.1% |
| Victoria Park | WA | Greater Perth | Unit | $450 | 21.6% | 7.0% |
| Bayswater | WA | Greater Perth | Unit | $450 | 21.6% | 6.7% |
| Maryborough | QLD | Rest of Qld | Unit | $300 | 7.1% | 6.7% |
Armadale was nominated for its affordability and investment opportunities and has become a hotspot for investors as it is close to the city. A house can be purchased for less than $400,000 and a unit for around $300,000.
Geraldton in regional Western Australia, number two on the list, also offers a 7.7% unit yield and 6.2% for houses.
The city is a large port used for exporting minerals and wheat, and plenty of employment opportunities exist.
It is also extremely affordable, with the median house price at $320,000 and units at $182,000.
It isn't just WA suburbs where the highest rental yield can be found; there are also top suburbs in the Northern Territory, Queensland and South Australia.
In regional Queensland, Gladstone was nominated by the panel for its amenities and affordability and is in the midst of a mining boom.
The rental yield for units in Gladstone is 7.4%, although it is just 1.9% for houses.
| Suburb | State | GCCSA | Property type | Median weekly advertised rent | 12-month change in median weekly advertised rent | Rental Yield |
| Armadale | WA | Greater Perth | Unit | $415 | 18.6% | 7.7% |
| Geraldton | WA | Rest of WA | Unit | $260 | 4.0% | 7.7% |
| Victoria Park | WA | Greater Perth | Unit | $450 | 21.6% | 7.0% |
| Dickson | ACT | Australian Capital Territory | Unit | $585 | 2.6% | 5.3% |
| Holt | ACT | Australian Capital Territory | Unit | $530 | 7.1% | 5.2% |
| Holt | ACT | Australian Capital Territory | House | $620 | 3.3% | 4.3% |
| Dubbo | NSW | Rest of NSW | Unit | $320 | 0.0% | 5.0% |
| Armidale | NSW | Rest of NSW | Unit | $300 | 3.4% | 5.0% |
| Armidale | NSW | Rest of NSW | House | $440 | 2.9% | 4.7% |
| Gladstone Central | QLD | Rest of Qld | Unit | $350 | 3.7% | 7.4% |
| Townsville City | QLD | Rest of Qld | Unit | $450 | 7.1% | 7.1% |
| Maryborough | QLD | Rest of Qld | Unit | $300 | 7.1% | 6.7% |
| Whyalla | SA | Rest of SA | Unit | $230 | -4.2% | 7.2% |
| Whyalla | SA | Rest of SA | House | $370 | 25.4% | 6.6% |
| Salisbury | SA | Greater Adelaide | Unit | $330 | 11.1% | 6.3% |
| Burnie | TAS | Rest of Tas. | Unit | $270 | 8.0% | 5.2% |
| Rokeby | TAS | Greater Hobart | Unit | $520 | 5.0% | |
| Devonport | TAS | Rest of Tas. | House | $400 | 5.3% | 4.8% |
| Albion | VIC | Greater Melbourne | Unit | $325 | 16.1% | 5.6% |
| Churchill | VIC | Rest of Vic. | House | $360 | 5.9% | 5.3% |
| Burwood | VIC | Greater Melbourne | Unit | $450 | 4.7% | 4.7% |
More investors have been selling than buying in recent years; however, vacancy rates are at an all-time low and median weekly rents continue to rise, creating a strong environment for investors.
Additionally, the current high interest rate environment will make renting the only affordable option for many property seekers, pushing up demand even further for rental properties.
