Investor dream: When affordability meets capital growth
While home prices sit at record highs, these 10 suburbs offer the perfect combination of affordability and high capital gain for both houses and units.
The latest PropTrack Home Price Index showed that dwelling prices across the country rose by 0.40 per cent in February, representing a 3.49 per cent increase year-on-year.
Nationwide, capital cities led the price growth, with Melbourne and Sydney seeing the largest price increase of 0.67 and 0.5 per cent, respectively.
Similarly, Perth, Adelaide and Brisbane recorded the highest growth over the past 12 months, with a dwelling price increase between 10 per cent and 13 per cent.
While home prices have been growing slowly, REA Group senior economist Eleanor Creagh said they have remained steady, creating pockets of investment.
Creagh said the Reserve Bank of Australia’s rate cut had boosted borrowing capacity and buyers’ confidence.
“Looking ahead, prices are expected to continue lifting, and interest rates are expected to fall further,” she said.
Through the report, PropTrack identified which suburbs in each capital city have the best value for money, recording between 10 per cent and 55 per cent growth over the past 12 months.
Here are the top 10 suburbs for investors:
Sydney
Fairfield:
- Median house price: $1,155,000
- Price growth over 12 months: 22.9 per cent
Located 32 kilometres south-west of Sydney’s CBD, Fairfield boasts a range of amenities such as parks, schools, and shopping centres while being close to essential transport links.
Known for its affordability, it blends suburban charm and proximity to the city, making it an attractive option for first-time investors.
Punchbowl:
- Median unit price: $532,500
- Price growth over 12 months: 19 per cent
Punchbowl, about 20 kilometres south-west of Sydney’s CBD, provides affordable housing options and a family-friendly environment, with transport links and local amenities like parks, schools and shopping centres.
Melbourne
Cranbourne South:
- Median house price: $828,500
- Price growth over 12 months: 10.5 per cent
Cranbourne South, located 45 kilometres south-east of Melbourne’s CBD, is a rapidly growing suburb offering affordable housing options for families.
The area has a mix of modern homes and rural land, appealing to investors seeking a property that balances peaceful living and easy access to urban amenities.
West Footscray:
- Median unit price: $547,500
- Price growth over 12 months: 24.4 per cent
Only 8 kilometres west of Melbourne’s CBD, West Footscray is a vibrant and up-and-coming suburb known for its diverse community and mix of residential and industrial areas.
The suburb has easy access to public transport, including train and bus services, as well as proximity to parks, schools and shopping precincts.
Brisbane
Tivoli:
- Median house price: $628,300
- Price growth over 12 months: 36.6 per cent
Known for its affordable housing options, Tivoli is a peaceful residential suburb offering a blend of rural charm and suburban convenience.
Located 40 kilometres west of Brisbane’s CBD and near Ipswich, Tivoli is a great choice for investors seeking to attract renters with a relaxed lifestyle and easy access to urban conveniences.
Dakabin:
- Median unit price: $667,500
- Price growth over 12 months: 51.7 per cent
Situated 30 kilometres north of Brisbane’s CBD, Dakabin is a growing suburb known for its family-friendly atmosphere and affordable housing options.
With convenient access to the Bruce Highway, Dakabin offers residents easy commuting options to Brisbane and surrounding areas, and close proximity to schools, shopping centres and public transport.
Adelaide
Elizabeth South:
- Median house price: $477,500
- Price growth over 12 months: 32.6 per cent
Elizabeth South is a suburb in Adelaide, located approximately 26 kilometres north of the city centre in the Playford region.
The area benefits from nearby shopping precincts, recreational spaces and good transport connections, including the Elizabeth railway station.
With plans for urban renewal and infrastructure improvements, Elizabeth South is gaining interest as a suburban area with strong potential for future growth.
Salisbury East:
- Median unit price: $465,000
- Price growth over 12 months: 55 per cent
Salisbury East, located 22 kilometres north of Adelaide’s CBD, is a suburban area known for its family-friendly atmosphere and green spaces.
With well-established schools, shopping centres, and easy access to major roads and public transport, Salisbury East is an attractive location for first home buyers and investors looking for long-term value and a balanced lifestyle.
Perth
Medina:
- Median house price: $545,000
- Price growth over 12 months: 47.3 per cent
Medina, located 34 kilometres south of Perth, is an affordable suburb offering great potential for investors.
With spacious homes on larger blocks, it provides a peaceful, family-friendly atmosphere with easy access to parks and local amenities.
The area is also well-connected with public transport options and is close to the Kwinana Freeway, making it a convenient location for commuting to the city.
Orelia:
- Median unit price: $315,000
- Price growth over 12 months: 50 per cent
Located next to Medina, Orelia shares proximity to local amenities, parks and transport links.
With its affordable housing options and growing community amenities, Orelia is an appealing choice for investors and those seeking a quieter, more affordable alternative to central Perth living.