The year 2024 saw a resurgence in investor activity after a couple of poor performing years. According to PropTrack, there was a 19 per cent rise in new lending commitments to investors over the past 12 months.
To assist in any investor decisions, REA Group unveiled its hot 100 suburbs for 2025. Spanning all corners of Australia, here are the top 10 promising suburbs for investors.
1. Broome
With both tourism and mining helping to keep this community thriving, Broome offers a rental yield of 7.2 per cent for houses and 7.7 per cent for units. House prices have seen massive increases over the year, climbing 27 per cent. Meanwhile, unit prices grew 12 per cent. As of November, the median house price is $772,000 and $459,000 for units.
2. Rockhampton
With median house prices of $345,000 in November and a rental yield of 7.1 per cent, this Queensland city is a hotspot for agriculture. With close proximity to the coast, it’s also a great tourist location.
3. Braitling
Located in Northern Alice Springs, this desert town is a popular location for tourists and government workers. Rental yields are 6.8 per cent on units and 6.2 per cent on houses, with a median house price of $455,000.
4. Geraldton
This regional Western Australia town is crucial for the mining industry, acting as a port for exports. It’s also affordable, with median prices of $405,000 for houses and $274,500 for units. Yields are 6.1 per cent for houses and 7.6 per cent for units.
5. Kirwan
A suburb of Townsville, Kirwan boasts strong demand due to reduced supply. It has a 5.5 per cent yield on houses and 6.7 per cent on units. You can expect a median house price of $494,000 for houses and $332,500 for units.
6. East Victoria Park
One of a few capital city suburbs, this south-east Perth area has great returns for units, with a yield of 7 per cent. Meanwhile, the median unit price was $495,000 in November, with 24 per cent annual growth. The area is popular due to period homes, good schools and green spaces.
7. West Leederville
Another Perth suburb, this area is known for cafes, dining, schools and transport links. The median unit price was $462,000 in November, with yields of 6.5 per cent.
8. Bassendean
Located in central Perth, median house prices are relatively cheap for how central this suburb is, at just $495,000 for units, with a yield of 6.3 per cent. REA Group has recognised “upward trends” in prices and rents.
9. Mount Lawley
A popular nightlife destination in Perth, this “accessible” suburb offers median unit prices of $455,000 and yields of 6.3 per cent.
10. Bayswater
Located near Perth Airport, the area is known for its older homes on large blocks of land. Subdivisions are seeing attention in Bayswater, said REA Group, with a 6.3 per cent yield and $410,000 median unit price, up 42 per cent annually.