Australia’s top 20 affordable property investment locations revealed

Locating the best prospective property investments without breaking the bank is difficult with prices having risen so sharply, but this meticulously researched list, and interactive map, makes the task a whole lot easier.

Uncovering the best affordable property investment regions in one of the world’s least affordable national property markets is no easy feat.

Property prices and rents in Australia are prohibitively expensive by international standards.

Sydney has had the first, second or third least affordable housing of any major market in 15 of the last 16 years. Melbourne is the seventh least affordable of 94 markets measured, while Perth and Adelaide’s rental markets are among the very worst in the developed world when it comes to vacancy rates.

Although rental pain around the country is only worsening, housing affordability has improved for the first time since the start of 2021.

According to the Real Estate Institute of Australia, the proportion of income required to meet average loan repayments fell 1.0 percentage points to 46.7 per cent to mid-2024. The improvement can be attributed to stronger wage growth and a pause on interest rate hikes.

Rental affordability declined, however, in all states and territories. Declines ranged from 0.2 percentage points in Victoria to 0.7 percentage points in Tasmania. Nationally, the proportion of income required to meet median rents increased 0.5 percentage points over the quarter to 24.4 per cent.

So where does that leave investors who don’t have an unlimited budget?

To unearth the top 20 relatively affordable investment prospects in Australia, a range of factors have been examined and their combined impact assessed, including price and trajectory, supply, rental income and yields, affordability and lifestyle.

The top 20 list is compiled from the Australian Bureau of Statistics’ (ABS) 358 SA3 geographical areas, and singles out particular hotspot suburbs. SA3s are essentially the functional areas of regional towns and cities with a population in excess of 20,000 or clusters of related suburbs around urban commercial and transport hubs within the major urban areas.

The results, below this interactive map, are listed by state, with Western Australia landing seven locations in the top 20 list, while just one is in Victoria. The map provides a wealth of property market information about the SA3 regions throughout Australia (just click on the zone or search your area via the magnifying glass icon).

Australia’s Top 20 Affordable Investment Markets

Queensland

1. The Hills District

The Hills District, in Moreton Bay – South, offers an attractive median house price of $962,000, with a recent 10 per cent increase over the past 24 months. The inventory forecast is low at 2.24 months, signalling strong demand. With a median rent of $670 per week and a rental yield of 3.6 per cent, suburbs such as Albany Creek and Ferny Hills are highly sought after for their blend of affordability and lifestyle. The area’s rent affordability index is 28 per cent, making it accessible for many renters.

 

2. Rockhampton

Rockhampton, located in Central Queensland, presents a more affordable option with a median house price of $470,000, up 27 per cent over the last 24 months. The low inventory forecast of 2.42 months and a median rent of $490 per week result in a rental yield of 5.4 per cent. Suburbs like Berserker and Frenchville offer family-friendly amenities and strong rental demand, with a rent affordability index of 32 per cent.

 

3. Toowoomba

Toowoomba, with a median house price of $610,000 and a 29 per cent increase in the last 24 months, has a low inventory forecast of 2.59 months. The median rent is $500 per week, yielding 4.3 per cent. Popular suburbs such as East Toowoomba and Highfields provide excellent schools and parks. The rent affordability index is 33 per cent, ensuring it remains accessible for both renters and buyers.

 

4. Darling Downs – East

Darling Downs – East, in the Darling Downs – Maranoa region, offers a median house price of $405,000, which has increased by 33 per cent over the past 24 months. With an inventory forecast of 2.68 months and a median rent of $440 per week, the rental yield is 5.6 per cent. Suburbs such as Dalby and Pittsworth are known for their rural charm and affordability, with a rent affordability index of 33 per cent.

 

5. Capalaba

Located in Brisbane – East, Capalaba has a median house price of $880,000, with an 11 per cent increase over the past 24 months. The area has a low inventory forecast of 1.79 months and a median rent of $680 per week, yielding 4.0 per cent. Suburbs like Alexandra Hills and Birkdale are popular for their coastal proximity and community facilities, with a rent affordability index of 35 per cent.

 

6. Ipswich Hinterland 

The Ipswich Hinterland region offers a median house price of $600,000, with a significant 36 per cent increase over the past 24 months. The inventory forecast is higher at 3.98 months, and the median rent is $525 per week, yielding 4.6 per cent. Suburbs such as Fernvale and Lowood provide a semi-rural lifestyle with strong community ties. The rent affordability index is 37 per cent, making it an attractive option for renters.

 

South Australia

7. Adelaide Hills

Adelaide Hills, part of Adelaide – Central and Hills, offers a median house price of $775,000, with a 19 per cent increase over the past 24 months. The inventory forecast of 2.77 months and a median rent of $550 per week yield 3.7 per cent. Suburbs like Mount Barker and Hahndorf are known for their scenic beauty and community lifestyle, with a rent affordability index of 29 per cent.

 

8. Lower North

Lower North, in the Barossa – Yorke – Mid North region, has a median house price of $365,000, increasing by 30 per cent over the past 24 months. With an inventory forecast of 2.85 months and a median rent of $345 per week, the rental yield is 4.9 per cent. Suburbs like Clare and Balaklava are notable for their historical charm and wine-producing regions, with a rent affordability index of 30 per cent.

 

9. Gawler – Two Wells

Located in Adelaide – North, Gawler – Two Wells offers a median house price of $589,000, with a significant 31 per cent increase over the past 24 months. The inventory forecast of 2.82 months and a median rent of $495 per week yield 4.4 per cent. Suburbs such as Gawler and Evanston provide a blend of affordability and family-friendly amenities, with a rent affordability index of 33 per cent.

 

10. Tea Tree Gully 

Tea Tree Gully, part of Adelaide – North, has a median house price of $722,500, increasing by 19 per cent over the past 24 months. With an inventory forecast of 2.23 months and a median rent of $570 per week, the rental yield is 4.1 per cent. Suburbs like Modbury and Golden Grove are popular for their excellent amenities and schools, with a rent affordability index of 35 per cent.

 

Victoria

11. Mildura 

Mildura, located in North West Victoria, offers a median house price of $427,500, with a 6 per cent increase over the past 24 months. The higher inventory forecast of 3.85 months and a median rent of $420 per week result in a rental yield of 5.1 per cent. Popular suburbs such as Irymple and Red Cliffs are known for their agricultural production and relaxed lifestyle, with a rent affordability index of 31 per cent.

 

Western Australia

12. Joondalup

Joondalup, in Perth – North West, has a median house price of $875,000, with an 18 per cent increase over the past 24 months. The low inventory forecast of 2.16 months and a median rent of $680 per week yield 4.0 per cent. Suburbs like Hillarys and Mullaloo are popular for their coastal lifestyle and community facilities, with a rent affordability index of 31 per cent.

 

13. Kalamunda

Kalamunda, located in Perth – South East, offers a median house price of $700,000, with a 25 per cent increase over the past 24 months. The inventory forecast of 2.59 months and a median rent of $600 per week yield 4.5 per cent. Suburbs such as Forrestfield and Lesmurdie are known for their natural beauty and spacious properties, with a rent affordability index of 32 per cent.

 

14. Mundaring

Mundaring, in Perth – North East, has a median house price of $732,000, with a 20 per cent increase over the past 24 months. The inventory forecast of 2.51 months and a median rent of $600 per week yield 4.3 per cent. Suburbs like Glen Forrest and Darlington are popular for their semi-rural lifestyle and community spirit, with a rent affordability index of 33 per cent.

 

15. Albany

Albany, located in the Western Australia – Wheat Belt region, offers a median house price of $505,000, with a 20 per cent increase over the past 24 months. The inventory forecast of 3.35 months and a median rent of $470 per week yield 4.8 per cent. Suburbs such as Denmark and Emu Point are known for their scenic views and relaxed lifestyle, with a rent affordability index of 36 per cent.

 

16. Canning

Canning, part of Perth – South East, has a median house price of $816,000, with a 31 per cent increase over the past 24 months. The higher inventory forecast of 3.66 months and a median rent of $650 per week yield 4.1 per cent. Suburbs like Willetton and Rossmoyne are popular for their family-friendly amenities and schools, with a rent affordability index of 36 per cent.

 

17. Stirling 

Stirling, in Perth – North West, offers a median house price of $890,000, with a 13 per cent increase over the past 24 months. The inventory forecast of 3.43 months and a median rent of $650 per week yield 3.8 per cent. Suburbs like Scarborough and Innaloo are known for their vibrant lifestyle and coastal proximity, with a rent affordability index of 36 per cent.

 

18. Bunbury

Bunbury, part of the Bunbury region, offers a median house price of $505,000, with a significant 28 per cent increase over the past 24 months. The inventory forecast of 2.80 months and a median rent of $570 per week yield 5.9 per cent. Suburbs such as Eaton and Dalyellup provide a blend of affordability and family-friendly amenities, with a rent affordability index of 37 per cent.

 

New South Wales

19. Upper Hunter

Upper Hunter, located in Hunter Valley excluding Newcastle, offers a median house price of $490,000, with an 18 per cent increase over the past 24 months. The inventory forecast of 2.54 months and a median rent of $500 per week yield 5.3 per cent. Popular suburbs such as Scone and Muswellbrook are known for their equestrian activities and vineyards, with a rent affordability index of 33 per cent.

 

20. Newcastle

Newcastle, part of Newcastle and Lake Macquarie, has a median house price of $880,000, with stable prices over the past 24 months. The inventory forecast of 1.90 months and a median rent of $630 per week yield 3.7 per cent. Suburbs like Merewether and Hamilton are popular for their beaches and vibrant dining scene, with a rent affordability index of 36 per cent.

 

Affordable property options can be found

These regions across Queensland, South Australia, Victoria, Western Australia, and New South Wales demonstrate that affordability is still attainable for both buyers and renters.

The combination of strong rental yields, increasing house prices, and low inventory levels suggest that these areas will continue to attract interest from both investors and first home buyers.

Affordability remains a key factor in these regions, ensuring that they remain accessible to a wide range of buyers and renters.

 

Additional reporting by Craig Francis