Real Estate: What to Invest in Australia 2024

Looking to invest in real estate across Australia in 2024? This guide has got you covered with high-yield and growth opportunities in major cities and regions.

Brisbane’s rental market, Perth’s affordability, Sydney and Melbourne’s top suburbs, South Australia, Tasmania and Queensland’s high performers. We cover investment hotspots for 2024.

Infrastructure, economic trends and migration – what are the drivers and where will you get the best returns in 2024? Read on for tailored strategies and insights.

High-Yield & Growth in Brisbane & Surrounds

2024 is shaping up to be a great year for Brisbane and its surrounding regions for high rental yields and growth. Low vacancy rates, strong demand and major infrastructure upgrades are the drivers.

Here are the top performing suburbs and regions to watch:

High-Yield Suburbs: Suburbs in Logan and Ipswich – Eagleby, Woodridge, Kingston and Crestmead – are leading the charge in Brisbane’s rental market with yields of 6.1% to 6.3%. Between Brisbane and the Gold Coast, these areas have employment hubs and relatively low property prices and are popular with renters.

Infrastructure upgrades including motorway improvements are making these areas more connected and desirable.

Growth Suburbs: Suburbs closer to the Brisbane CBD or with great community amenities are growing strongly.

Wavell Heights and Nundah are growing at over 10% per annum and are popular with young professionals and families. Goodna and Petrie are also investment hotspots with yields over 5% due to affordable housing and easy transport to the Brisbane CBD.

Lifestyle and Long-Term Investment Areas: Ashgrove and Cannon Hill are for higher income professionals and families with median property prices over $1m but stable growth.

These areas have great amenities, parks and top schools and are long term family investments. Wilston and Tarragindi have high rental demand and community appeal and will only appreciate more as Brisbane hosts the 2032 Olympics and gets the Brisbane Metro and Cross River Rail.

Brisbane vacancy rates are under 1% for houses and units so rents have gone up – 9.3% for houses and 24.8% for units in the last 12 months.

This tight rental market and a big influx of interstate migrants from NSW and Vic will keep rental demand strong and drive yields and prices up.

For tailored strategies for rental income or capital growth in any of these areas get in touch!

Investment Potential in Perth & Regional WA

Perth and regional WA have high rental yields and growth potential. Here are some key suburbs and areas to watch:

Perth Suburbs with High Yields: Armadale, Gosnells and Brookdale are affordable and delivering yields of 6-7%. Armadale has a median property price of $370,000 with a yield of 7% and is popular with local and interstate investors looking for an entry point.

Regional Growth: WA’s resource rich regions including Karratha and Geraldton are yielding 6-7%.

These towns are driven by a strong mining economy and local employment and an influx of renters.

The Bunbury region, particularly Withers, is also on the move with yields over 7% and affordable property prices keeping investor interest strong.

Growth Potential: Perth’s median property price is around $646,520 which is low compared to other major cities in Australia. The affordability and high migration and low housing supply has driven both property values and rents up.

In the last 12 months Perth house rents have gone up nearly 20% due to low vacancy rates which has further increased rental yields and put Perth in a strong position for growth through to 2024.

Demand Factors: A strong economy and affordable property market is attracting interstate and international migrants to WA. As of March 2023 WA had the highest population growth rate in the country at 2.8%. With construction rates low this has increased demand and kept vacancy rates around 1% in many areas so rental income for investors is strong.

So Perth and regional WA are the investment sweet spots especially if you want properties that deliver rental income and capital growth. Growth will continue beyond 2024.

Prime Investment Opportunities in Sydney & Melbourne

Sydney and Melbourne have select suburbs and property types for different investment goals in 2024. Here are the areas to watch:

Sydney: Sydney’s rental market went up 17% in 2023 so yields in high demand suburbs have increased. Key rental income hotspots:

• Arncliffe: Near the airport and coastlines, Arncliffe is yielding 6.1% with a 1.4% vacancy rate.
• Pleasure Point: A peaceful area, Pleasure Point is yielding 4.9% with 47% rent growth this year and a 0.7% vacancy rate.
• Newington and Rosebery: Both yielding 4.6-4.7% these suburbs have lifestyle amenities and are close to the CBD so are popular with tenants looking for convenience and comfort.

Melbourne: Melbourne’s suburbs also have solid rental yields in 2024 for units:

• Outer Suburbs: Werribee and similar areas where prices are more affordable have rental yields over 4% to meet growing suburban demand.
• City-Fringe Suburbs: Carlton and Footscray are yielding 4-5% on units and are close to the city.

With Sydney’s rental growth ahead of Melbourne due to lower vacancy rates, some Sydney suburbs may have stronger short term returns while Melbourne’s outer suburbs have balanced growth with diverse renter demographics.

Investment Hotspots in South Australia & Tasmania

South Australia and Tasmania are the hotspots for investors with high rental yields and growth in 2024. Here are the areas to watch.

South Australia: Regional towns like Port Augusta and Whyalla are leading the way with yields up to 8% on houses. In Port Augusta the median price is around $220,000 which generates around $320 per week so it’s a cash flow investor’s dream.

Other high-yielding areas are Port Pirie and Bordertown where yields are around 7.2% driven by transient workers in mining and manufacturing.

Adelaide’s suburbs like Elizabeth North and Salisbury are yielding around 6.5% for units with lower entry prices.

Tasmania: Hobart and Launceston suburbs have competitive rental yields especially in affordable growing areas like Rokeby and New Norfolk. Rokeby is yielding 4.98% on houses with infrastructure growth in southern Hobart.

In Launceston, suburbs like Riverside and East Launceston are yielding 4-4.76% with lifestyle amenities, views and close to the CBD. East Launceston has capital growth opportunities due to its historic charm and established reputation.

Affordability, low vacancy rates and strong rental demand makes South Australia and Tasmania a hot spot for investors looking for income and growth. Contact me if you want to know more about investment strategies in these areas!

Queensland’s High-Return Regional Markets

Regional Queensland has many investment opportunities for high rental yields and growth in 2024. Here are the areas to watch.

High-Yielding Areas: Mining and industrial towns like Moranbah and Dysart in the Isaac region are yielding 12.5% and 10.8% respectively.

Other high-yielding areas are Collinsville in the Whitsundays with 11.4% yield and Koongal in Rockhampton with 10.2%.

These areas have transient worker populations and affordable housing around $300,000 so are perfect for cash flow investors.

Growth Areas: Rockhampton, Gladstone and Bundaberg have seen 17-18% growth in the past 12 months.

Gladstone with its industrial base and infrastructure growth has mid $300,000s to $400,000s median house prices and 6-8% yields. Bundaberg has coastal appeal and affordability with houses around $520,000 and steady growth.

Lifestyle Areas with Growth: Sunshine Coast areas like Golden Beach and Nambour are always in demand, Golden Beach has 11% growth driven by lifestyle amenities.

Toowoomba with infrastructure upgrades including a new airport and rail links is supporting property value growth around 14%.

Regional Queensland has affordability, high yields in resource areas and lifestyle growth. Perfect for investors.