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
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
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
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
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
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
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
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
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
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
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.
