Revealed: The 10 best investment locations with the highest yields
Investors looking to boost their positive cash flow and achieve rental yields of up to 8 per cent should consider these top 10 high-yield suburbs.
New research from Washington Brown and Hotspotting has identified the next top 10 suburbs for investors seeking to secure up to 8 per cent rental yields and grow their positive cash flow.
Hotspotting’s latest Pulse Report identified the top performing suburbs nationwide and noted seven suburbs ideal for unit investment and three for houses.
Washington Brown director, Tyron Hyde, said strong economic fundamentals, affordable property prices, and high rental demand characterised the top 10 locations.
“All of these factors contribute to their attractiveness as investment destinations, offering potential for significant returns,” Hyde said.
“The Australian property market continues to present lucrative opportunities for investors, particularly in locations offering high rental yields, across both houses and units.”
Hotspotting director, Terry Ryder, said that the research highlights Australia’s unique economic drivers and infrastructure developments that fuel the growth and stability of the property market.
“By examining key metrics such as median prices, growth rates, rental yields and vacancy rates, our research provides a comprehensive overview of the most promising areas for property investment, including above-average yields and potential for future capital growth,” Ryder said.
For investors looking for affordable buy-ins, the report showed that high-yield locations can be found in all states for a median dwelling price bellow $400,000 with a rental yield between 7.4 per cent and 8.1 per cent.
Additionally, Hyde said investors can benefit from depreciation benefits each year.
“Across the top 10 locations, annual taxation benefits potentially range anywhere from $2,700 to nearly $6,500, depending on the type of property and the location,” he said.
The report showed that investors in Leanyer could benefit from about $5,000 in depreciation, which could lead to a net yearly benefit of approximately $1,900 to $2,300, depending on the investor’s tax bracket and the type of property purchased.
“The median unit price in Douglas in Townsville, for example, is just $310,000 with a potential annual taxation benefit of $4,250, while the median house price in Spalding in Geraldton is $340,000 and features a possible taxation benefit of nearly $4,000,” Hyde said.
“Likewise, in Moree Plains in Moree, where the median house price is $300,000 with a potential annual taxation benefit of nearly $3,200.”
Here are the top 10 areas nationwide with high yields for both houses and units:
Houses
Depot Hill, Rockhampton, Queensland
• Median house price: $260,000
• 12-month growth: 27 per cent
• Rental yield: 8.1 per cent
• Vacancy rate: 0.0 per cent
Located south of the Rockhampton CBD, Depot Hill offers access to the city center while maintaining a more residential atmosphere, appealing to investors and renters alike.
Hyde said Rockhampton’s diverse and thriving economy, supported by billions in infrastructure projects, has generated jobs and fuelled housing demand while keeping vacancy rates at zero.
“Despite rising prices, Rockhampton remains affordable compared to capital cities, making it a prime investment spot,” Hyde said.
Moree, Moree Plains, NSW
• Median house price: $300,000
•12-month growth: -7 per cent
• Rental yield: 8 per cent
• Vacancy rate: 2.4 per cent
Nestled in the Moree Plains Shire of NSW, Moree is known for its rich agricultural industry and natural hot springs, where it serves as a regional hub for farming, commerce and tourism.
Ryder said that Moree, poised for significant growth as a special activation precinct focused on agribusiness and logistics, benefits from enhanced connectivity via the Inland Rail Link.
Additionally, with affordable housing prices and high yields, Moree is an appealing investment destination.
Spalding, Geraldton, Western Australia
• Median house price: $340,000
• 12-month growth: 26 per cent
• Rental yield: 7.4 per cent
• Vacancy rate: 1.7 per cent
Located approximately 8 kilometres south-east of the Geraldton city center, Spalding offers a mix of affordable housing and proximity to the coastal city’s amenities and beaches.
“Its strategic location between resource-rich regions ensures continued prosperity,” Hyde said.
“Affordable housing and strong rental demand make Geraldton a standout for investors looking for long-term performance.”
Units
Leanyer, Darwin, NT
• Median unit price: $345,000
• 12-month growth: 6 per cent
• Rental yield: 8 per cent
• Vacancy rate: 1.6 per cent
Known for its family-friendly atmosphere, Leanyer offers a mix of housing options and is close to parks, schools and recreation parks, making it the next hotspot for investors.
Ryder said the recent infrastructure projects and population growth have helped Greater Darwin’s property market rebound.
“High yields and affordability compared to other regions make Leanyer a top choice for investors,” he said.
Holloways Beach, Cairns, Queensland
• Median unit price: $296,000
• 12-month growth: 7 per cent
• Rental yield: 7.6 per cent
• Vacancy rate: 1.6 per cent
Holloways Beach, located about 15 kilometres north of Cairns, offers a relaxed beachside lifestyle.
Its mix of residential properties, easy access to the Coral Sea, and local amenities make it a popular destination.
“Affordable prices and low vacancies make Holloways Beach an appealing investment location,” Hyde said.
Douglas, Townsville, Queensland
• Median unit price: $310,000
• 12-month growth: 17 per cent
• Rental yield: 7.5 per cent
• Vacancy rate: 1.9 per cent
Douglas, located about 10 kilometres south-west of Townsville’s city centre, is known for its proximity to James Cook University and the Townsville Hospital, making it an ideal location for students and healthcare professionals.
Ryder said Townsville’s diverse economy, major infrastructure projects and strong employment opportunities make it a consistent and affordable property market for investors.
Larrakeyah, Darwin, NT
• Median unit price: $417,000
• 12-month growth: 4 per cent
• Rental yield: 7.5 per cent
• Vacancy rate: 2.5 per cent
Only 2 kilometres from Darwin’s city center, Larrakeyah offers a blend of residential properties, waterfront views and parks.
The suburb is popular for its proximity to amenities like the Darwin CBD, Cullen Bay Marina and popular dining spots, providing a convenient and coastal lifestyle.
Additionally, Hyde said Larrakeyah’s proximity to military bases and high rental demand make it an obvious choice for investors.
“The suburb’s growing population and development projects are driving economic recovery,” he said.
West Mackay, Mackay, Queensland
• Median unit price: $330,000
• 12-month growth: 10 per cent
• Rental yield: 7.4 per cent
• Vacancy rate: 0.9 per cent
West Mackay, located just 3 kilometres from the city center, is known for its blend of established homes, green spaces, and modern developments.
Ryder said that Mackay’s strong economy, driven by mining and agriculture, establishes it as a vital regional hub.
“Recent infrastructure investments highlight its ambition to sustain and expand its economic base, making it an attractive investment location,” he said.
Coconut Grove, Darwin, NT
• Median unit price: $367,000
• 12-month growth: 0 per cent
• Rental yield: 7.4 per cent
• Vacancy rate: 1.8 per cent
Coconut Grove, located about 14 kilometres north-east of Darwin’s city center, offers a relaxed residential vibe with a mix of homes, parks, and proximity to the coastal reserve and popular beaches.
Hyde said investors should consider Coconut Grove as the suburb records affordable prices and high rental demand.
“Ongoing projects in Darwin are creating jobs and boosting the local economy, enhancing its investment appeal,” he said.
Carlton, Melbourne, Victoria
• Median unit price: $320,000
• 12-month growth: 10 per cent
• Rental yield: 7.4 per cent
• Vacancy rate: 2.5 per cent
Only 2 kilometres north of Melbourne’s city center and nearby Melbourne University and the Royal Melbourne Hospital, Carlton is known for its vibrant cultural scene and historic architecture.
Ryder said Carlton’s proximity to universities and new infrastructure development have been boosting rental demand, making it a prime investment location.
“The suburb's vibrant dining district and student population also drive its strong rental market,” he said.