The top 10 investment locations with the highest yields, as well as potential for future capital growth, have been revealed, according to new research and analysis from depreciation experts Washington Brown.

The Pulse report, powered by Hotspotting, identified the top property performers around the nation with the combined power of high rental yields as well as capital growth fundamentals.

Washington Brown Director Tyron Hyde said the top 10 high-yield locations all have median prices under about $600,000 as well as yields above six per cent and can be found in the Northern Territory, New South Wales, Queensland, Western Australia, and Victoria.

“The Australian property market continues to present lucrative opportunities for investors, particularly in locations offering high rental yields, across both houses and units,” Mr Hyde said.

“Our top 10 selected locations are characterised by strong economic fundamentals, affordable property prices, and high rental demand. All of these factors contribute to their attractiveness as investment destinations, offering potential for significant returns.”

Hotspotting Director Terry Ryder said the research also highlights the unique economic drivers and infrastructure developments that underpin the growth and stability of these markets.

“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,” Mr Ryder said.

Mr Hyde said investors in the top 10 locations were also benefiting from thousands of dollars’ worth of 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.

“For investors in Leanyer, for example, the possible annual taxation benefit could be approximately $5,000, resulting in a net benefit of about $1,900 to $2,300 over the past year, depending on an investor’s personal tax bracket and the type of dwelling purchased.”

Mr Hyde said affordable buy-in prices produced superior yields across the top investment locations.

“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,” he 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.”

Top 10 Investment Locations with Highest Yields

Houses

Depot Hill, Rockhampton, QLD

• Median House Price: $260,000

• 12 Month Growth: 27%

• Rental Yield: 8.1%

• Vacancy Rate: 0.0%

Mr. Hyde said Rockhampton’s diverse economy is thriving, bolstered by billions in infrastructure projects.

“This surge in development has created jobs, driving housing demand and keeping vacancies at zero,” he said.

“Despite rising prices, Rockhampton remains affordable compared to capital cities, making it a prime investment spot.”

Moree, Moree Plains, NSW

• Median House Price: $300,000

• 12 Month Growth: -7%

• Rental Yield: 8.0%

• Vacancy Rate: 2.4%

Mr. Ryder said Moree is poised for significant growth as a Special Activation Precinct, focusing on agribusiness and logistics.

“The Inland Rail Link enhances its connectivity, and affordable housing prices coupled with high yields make it an attractive investment location,” he said.

Spalding, Geraldton, WA

• Median House Price: $340,000

• 12 Month Growth: 26%

• Rental Yield: 7.4%

• Vacancy Rate: 1.7%

Mr. Hyde said Geraldton, the largest city north of Perth, is experiencing rapid growth.

“Its strategic location between resource-rich regions ensures continued prosperity,” he 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%

• Rental Yield: 8.0%

• Vacancy Rate: 1.6%

Mr. Ryder said Greater Darwin’s property market is rebounding, driven by massive infrastructure projects and population growth.

“High yields and affordability compared to other regions make Leanyer a top choice for investors,” he said.

Holloways Beach, Cairns, QLD

• Median Unit Price: $296,000

• 12 Month Growth: 7%

• Rental Yield: 7.6%

• Vacancy Rate: 1.6%

Mr. Hyde said Cairns’ economy is diversifying beyond tourism, with growth in healthcare, agriculture, and construction.

“Affordable prices and low vacancies make Holloways Beach an appealing investment location,” he said.

Douglas, Townsville, QLD

• Median Unit Price: $310,000

• 12 Month Growth: 17%

• Rental Yield: 7.5%

• Vacancy Rate: 1.9%

Mr. Ryder said Townsville’s diverse economy, bolstered by major projects and strong employment opportunities, makes it a consistent and affordable property market.

“Significant investments in healthcare and defence further enhance its appeal,” he said.

Larrakeyah, Darwin, NT

• Median Unit Price: $417,000

• 12 Month Growth: 4%

• Rental Yield: 7.5%

• Vacancy Rate: 2.5%

Mr. Hyde said Larrakeyah’s proximity to military bases and high rental demand make it a popular choice for investors.

“The suburb’s growing population and development projects are driving economic recovery,” he said.

West Mackay, Mackay, QLD

• Median Unit Price: $330,000

• 12 Month Growth: 10%

• Rental Yield: 7.4%

• Vacancy Rate: 0.9%

Mr. Ryder said Mackay’s robust economy, fuelled by mining and agriculture, positions it as a key 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%

• Rental Yield: 7.4%

• Vacancy Rate: 1.8%

Mr. Hyde said Coconut Grove’s affordable prices and high percentage of renters make it a solid investment location.

“Ongoing projects in Darwin are creating jobs and boosting the local economy, enhancing its investment appeal,” he said.

Carlton, Melbourne, VIC

• Median Unit Price: $320,000

• 12 Month Growth: 10%

• Rental Yield: 7.4%

• Vacancy Rate: 2.5%

Mr. Ryder said Carlton’s proximity to universities and high rental demand, coupled with new developments, make it a prime investment location.

“The suburb’s vibrant dining district and student population also drive its strong rental market,” he said.

Since the start of the pandemic in 2020, many of Australia’s property markets have experienced some extraordinary price growth.

Many locations, both city-based and regional, achieved unprecedented price increases with median house and unit prices soaring as demand hit new highs. Where once a million-dollar house or unit median was unusual, that recent growth has launched many locations into that club for the first time.

As of January 2025, there were 1,194 suburbs or towns with a median house price or median unit price of $1 million or more – 50 more than in September 2024.

These figures show that although price growth may have eased in some locations in the past six months, the number of million-dollar markets continues to increase throughout Australia.

And there are still plenty of opportunities for investors to find markets that are set to tip over into million-dollar markets in 2025.

The latest Hotspotting and Propertybuyer, National Million Dollar Hotspots report shows there are plenty of markets teetering on the edge of a million-dollar median.

They are the markets where price growth has been steady in recent years and demand remains strong. ith that trajectory set to continue, these markets will soon breach the million-dollar barrier.

They are also strong markets for investors, where rents have been rising, yields are solid and vacancy rates are low.

Residential properties line the Sydney suburb of Birchgrove in Australia.

WATCH THE PROPERTY PLAYBOOK NOW

Million-dollar median

There is a distinct lure to investing in a suburb with a million-dollar median and it’s not just the prestige of the price tag. The magic of buying in a million-dollar suburb is its capital growth potential.

By reaching a million-dollar median, it’s already proven to be a desirable location where owner-occupiers and investors are prepared to pay top dollar to secure a piece of the action.

There are plenty of inner-city markets throughout Australia which already have million-dollar medians, but successful investors are those who find locations where prices aren’t just rising, but the fundamentals and amenities are in place to ensure ongoing solid price growth and increasing demand for properties in the suburb.

It’s essential when considering a million-dollar location to invest in that it meets a variety of criteria, not just price point. There needs to be ongoing demand for property and significant amenities to meet community needs, such as public transport, shops, schools and recreation spaces, whether that be beaches, parks or lakes.

WATCH THE PROPERTY PLAYBOOK NOW

Employment opportunities

Infrastructure spending is also important, as is solid population growth and access to good local employment opportunities. These are factors that will keep buyers returning time and again to these suburbs and increased buyer demand is what will keep prices increasing to $1 million and beyond.

Southport on the Gold Coast is a good example of this. Within less than six months, the median house price in Southport, which was a selection in our October 2024 report, has breached the $1 million median mark.

It had a median house price of around $970,000 in September 2024, which hit $1.04 million in February 2025 – that’s a rise of $70,000 in just five months.

The suburb has achieved 15% median house price growth in the 12 months to February 2025 – and is an example of what can be achieved in the Million Dollar Hotspots.

Terry Ryder is the Managing Director of HotSpotting

The property myth that could cost you a fortune in 2025

The Property Playbook is a dynamic real estate show that empowers investors and professionals with the insights and strategies needed to achieve strong returns in the Australian property market. Hosted by Tim Graham & Terry Ryder from Hotspotting.

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