A new report has highlighted the top-performing areas for property investment across Australia as the number of investors in the market explodes.
Investor activity has surged to levels not seen since 2017, with higher rents and lower mortgage rates encouraging more investors to dive in.
While some investors have been selling up, others have been snapping up properties in affordable pockets of the capitals where prices are growing rapidly.
The PropTrack Terri Scheer Investor Report found that the vast majority of investor sales in the past year have been profitable – largely a result of the rapid price growth of the past few years, particularly in the high-performing capitals of Adelaide, Brisbane and Perth.
Strong price rises in these cities have pushed the share of profitable investor sales to the highest level on record.
“Most sales happening today will have benefited from the rapid home price increases during the pandemic, as well as the years following in the smaller capitals,” said REA Group executive manager of economics Angus Moore, who co-authored the report with economic analyst Megan Lieu.
“Investors selling in the smaller capitals — Brisbane, Adelaide and Perth — have nearly all seen profits on their sale,” he said.
Source: PropTrack Terri Scheer Investor Report
By contrast, the share of profitable investor sales in Melbourne was lower – a result of the city’s slower price growth.
“While prices have been growing in 2025, that follows a softer period since the RBA started raising rates,” Mr Moore said.
Almost all investors who sold in Brisbane in the past year made a profit. Picture: Getty
The report found that the number of new investor loans has trended up nationally in the past two years, following that quieter period in the market.
Rents rose rapidly in the past few years, and while growth has slowed and rental yields have stabilised, mortgage rates have come down. This has reduced interest costs, which is the largest expense of owning a rental property that investors incur.
Source: PropTrack Terri Scheer Investor Report
“Investors are making up a very substantial share of new lending – close to as high as recorded in a couple of decades in some of the smaller states, and nationally around the highest since 2017,” Mr Moore said.
Property markets investors are now targeting
While fewer investors who sold in Melbourne made a profit compared with the other capitals, that hasn’t stopped a new wave of investors flocking to the city’s affordable pockets where rental yield is high and price growth is outpacing the rest of the city.
Outer suburbs of the capitals were on the radar, including several areas where freestanding houses could be purchased for less than $750,000, while investors also made up a high share of buyers in inner city markets, the report noted.
Investors have targeted outer areas where freestanding houses are more affordable, such as Wyndham in Melbourne's west. Picture: realestate.com.au/buy
“Areas like Wyndham, Tullamarine and Melton in Melbourne’s west, Blacktown and St Mary’s in Sydney’s west, Ipswich in Brisbane’s west, Kwinana in Perth’s southwest and Armadale in its southeast, are all seeing a high degree of new investor purchases.”
Top-performing suburbs for investors
The report also highlighted the top-ranked suburbs for investors, based on a combination of factors including high capital gains, high rental yields and strong rental demand.
In Melbourne, the top-ranked suburbs for houses were mostly found in more-affordable pockets in the north west and south east, with Cranbourne South, Meadow Heights and Coolaroo topping the list.
Top investor suburbs for houses in the capitals
| Rank | Suburb | Region (SA4) | Median sale price | Annual growth | Rental yield | Rental days on market |
| 1 | Tumbi Umbi, NSW | Central Coast | $1,100,000 | 16.4% | 3.6% | 16 |
| 2 | Werrington, NSW | Sydney – Outer West and Blue Mountains | $1,044,000 | 14.1% | 3.8% | 23 |
| 3 | Austral, NSW | Sydney – South West | $1,070,000 | 14.4% | 3.9% | 28 |
| 4 | Richmond, NSW | Sydney – Outer West and Blue Mountains | $980,000 | 13.4% | 3.7% | 18 |
| 5 | Woodcroft, NSW | Sydney – Outer South West | $1,070,000 | 18.9% | 3.5% | 22 |
| 1 | Cranbourne South, VIC | Melbourne - South East | $800,000 | 9.5% | 4.3% | 21 |
| 2 | Meadow Heights, VIC | Melbourne - North West | $638,000 | 10.0% | 4.5% | 26 |
| 3 | Coolaroo, VIC | Melbourne - North West | $602,000 | 11.4% | 4.3% | 26 |
| 4 | Dallas, VIC | Melbourne - North West | $570,000 | 6.5% | 4.5% | 24 |
| 5 | Westmeadows, VIC | Melbourne - North West | $700,000 | 6.5% | 4.4% | 22 |
| 1 | North Booval, QLD | Ipswich | $650,000 | 28.7% | 4.4% | 20 |
| 2 | East Ipswich, QLD | Ipswich | $649,500 | 25.9% | 4.3% | 19 |
| 3 | Kilcoy, QLD | Moreton Bay - North | $630,000 | 18.9% | 5.0% | 22 |
| 4 | Laidley, QLD | Ipswich | $585,000 | 19.4% | 5.0% | 25 |
| 5 | Lowood, QLD | Ipswich | $655,000 | 20.2% | 4.5% | 24 |
| 1 | Evanston Gardens, SA | Adelaide - North | $640,000 | 23.4% | 4.6% | 22 |
| 2 | Elizabeth North, SA | Adelaide - North | $505,000 | 19.0% | 4.8% | 22 |
| 3 | Evanston, SA | Adelaide - North | $614,000 | 21.5% | 4.6% | 23 |
| 4 | St Clair, SA | Adelaide - West | $720,000 | 18.0% | 4.5% | 14 |
| 5 | Elizabeth Downs, SA | Adelaide - North | $560,000 | 21.7% | 4.6% | 24 |
| 1 | Midvale, WA | Perth - North East | $655,000 | 23.6% | 5.5% | 17 |
| 2 | Cannington, WA | Perth - South East | $725,000 | 24.5% | 5.2% | 15 |
| 3 | Stratton, WA | Perth - North East | $608,000 | 21.1% | 5.3% | 16 |
| 4 | Bullsbrook, WA | Perth - North East | $755,000 | 24.7% | 5.2% | 18 |
| 5 | Pinjarra, WA | Mandurah | $603,000 | 21.7% | 5.3% | 22 |
| 1 | Isabella Plains, ACT | Australian Capital Territory | $840,000 | 5.8% | 4.2% | 18 |
| 2 | Calwell, ACT | Australian Capital Territory | $845,000 | 5.0% | 4.3% | 19 |
| 3 | Casey, ACT | Australian Capital Territory | $934,000 | 13.8% | 4.2% | 22 |
| 4 | Banks, ACT | Australian Capital Territory | $765,000 | 4.1% | 4.5% | 20 |
| 5 | Bonner, ACT | Australian Capital Territory | $956,000 | 7.4% | 4.1% | 21 |
See the full list of top investors suburbs in the PropTrack Terri Scheer Investor Report 2025
Property values in these suburbs have grown much faster than Melbourne overall, with growth rates ranging between 9.5% and 11% in the past year, and rental yields exceeding 4%.
Real estate agent and auctioneer Amin Halabi of YPA Hume City said about two thirds of the buyers in Meadow Heights and Coolaroo were investors – a proportion that has risen in the past six months.
“A lot of them are coming from interstate, and there’s so many buyer advocates out there that are purchasing on their behalf,” he said. “They’re getting good rent, and renting quite quickly.”
Top-performing suburbs for units include Notting Hill, with a median unit price of $384,000 and an indicative rental yield of 6.9%, as well as Sunshine and Broadmeadows.
Median unit prices in these suburbs have grown by 11-12% in the past year.
Standout Sydney suburbs for investors looking at houses were mostly found in the city’s west, including Werrington, Austral and Richmond.
While these suburbs have median house prices exceeding $1 million, solid growth rates would attract investors looking for capital gain.
For units, attractive rental yields were found in affordable suburbs in the inner south west such as Lakemba (5.7%), Wiley Park (5.5%) and Bankstown (5.5%).
Real estate agent and Knapton & Co director Luke Knapton said investors buying in the area valued the proximity to the CBD, high yields and low vacancy rates, while others expected uplift from extension of the metro to Bankstown, which would reduce travel times.
“Rate cuts are a factor, but also the railway line is being upgraded and that comes into effect early next year,” he said.
“Rents are still rising and prices are jumping fairly rapidly.”
Lakemba, about 25 minutes from the Sydney CBD, has a median unit price of $480,000. Picture: realestate.com.au/sold
Investors seeking strong gains in southeast Queensland could look at suburbs in the Ipswich region such as North Booval, One Mile and East Ipswich, where despite values rising as much as 29% in a year, houses can still be purchased for $650,000 or less.
The Logan region was a standout for units, with Beenleigh, Slacks Creek and Woodridge offering solid yields, rapid price growth and strong rental demand.
Top investor suburbs for units in the capitals
| Rank | Suburb | SA4 | Median sale price | Annual growth | Rental yield | Rental days on market |
| 1 | Lakemba, NSW | Sydney - Inner South West | $480,000 | 9.1% | 5.7% | 19 |
| 2 | Bankstown, NSW | Sydney - Inner South West | $579,000 | 9.2% | 5.5% | 19 |
| 3 | Enfield, NSW | Sydney - Inner West | $750,000 | 15.4% | 5.1% | 25 |
| 4 | Wiley Park, NSW | Sydney - Inner South West | $466,000 | 8.6% | 5.5% | 19 |
| 5 | West Gosford, NSW | Central Coast | $610,000 | 8.0% | 5.4% | 15 |
| 1 | Notting Hill, VIC | Melbourne - South East | $384,000 | 10.9% | 6.9% | 22 |
| 2 | Sunshine, VIC | Melbourne - West | $516,000 | 12.2% | 6.0% | 23 |
| 3 | Broadmeadows, VIC | Melbourne - North West | $465,000 | 11.8% | 5.7% | 23 |
| 4 | Cremorne, VIC | Melbourne - Inner | $600,000 | 5.3% | 6.0% | 16 |
| 5 | Fawkner, VIC | Melbourne - North West | $590,000 | 9.9% | 5.0% | 18 |
| 1 | Beenleigh | Logan - Beaudesert | $500,000 | 30.5% | 4.8% | 16 |
| 2 | Slacks Creek, QLD | Logan - Beaudesert | $515,000 | 26.7% | 4.9% | 20 |
| 3 | Woodridge, QLD | Logan - Beaudesert | $431,000 | 19.7% | 5.0% | 14 |
| 4 | Kippa-Ring, QLD | Moreton Bay - North | $552,000 | 22.7% | 5.0% | 22 |
| 5 | Kelvin Grove, QLD | Brisbane Inner City | $640,000 | 21.9% | 4.9% | 18 |
| 1 | Brooklyn Park, SA | Adelaide - West | $455,000 | 27.1% | 5.0% | 17 |
| 2 | Camden Park, SA | Adelaide - West | $618,000 | 39.8% | 4.5% | 16 |
| 3 | Morphett Vale, SA | Adelaide - South | $578,000 | 22.7% | 4.5% | 14 |
| 4 | Glenside, SA | Adelaide - Central and Hills | $689,000 | 26.7% | 4.7% | 18 |
| 5 | Salisbury, SA | Adelaide - North | $441,000 | 22.2% | 5.1% | 19 |
| 1 | East Cannington, WA | Perth - South East | $560,000 | 40.0% | 6.5% | 19 |
| 2 | Hamilton Hill, WA | Perth - South West | $570,000 | 41.8% | 5.8% | 15 |
| 3 | Cloverdale, WA | Perth - South East | $525,000 | 26.5% | 6.6% | 17 |
| 4 | Belmont, WA | Perth - South East | $566,000 | 27.3% | 6.2% | 17 |
| 5 | Ascot, WA | Perth - South East | $558,000 | 26.7% | 6.4% | 17 |
| 1 | City, ACT | Australian Capital Territory | $547,000 | 11.7% | 5.9% | 25 |
| 2 | Harrison, ACT | Australian Capital Territory | $585,000 | 3.8% | 5.7% | 19 |
| 3 | Braddon, ACT | Australian Capital Territory | $615,000 | 7.9% | 5.6% | 23 |
| 4 | Campbell, ACT | Australian Capital Territory | $718,000 | 7.5% | 5.1% | 21 |
| 5 | Gungahlin, ACT | Australian Capital Territory | $430,000 | -1.8% | 6.3% | 23 |
See the full list of top investors suburbs in the PropTrack Terri Scheer Investor Report 2025
Adelaide’s north remains the city’s standout market for investors looking at houses, with Evanston Gardens topping the list. Meanwhile, Brooklyn Park was the number one pick for units, with a rental yield of 5% and a median unit price of $455,000.
Perth’s top investor suburbs for houses included Midvale, Stratton and Middle Swan in the north west, as well as Merriwa and Ridgewood in the outer north.
Units in Belmont in Perth's east are ticking a lot of boxes for investors. Picture: realestate.com.au/sold
Several suburbs in the city’s east had rental yields exceeding 6%, including East Cannington, Cloverdale and Belmont.
Isabella Plains was the top pick for houses in Canberra with an $840,000 median house price and 4.2% yield, while City stood out for its 5.9% yield, with prices having risen almost 12% in the past year.
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