5 cheapest Aussie neighbourhoods tipped for growth

The report compared the following metrics: rising sales activity, high levels of affordable stock, strong infrastructure, and proximity to major job nodes.

So what are Hotspotting’s five top picks for investors? Here is their final shortlist.

1. City of Melbourne

With a steady stream of newcomers and public works projects galore, the City of Melbourne is predicted to be a haven for investors.

Hotspotting director Terry Ryder shared that “despite facing challenges during the pandemic, Melbourne has shown resilience and stability in its property market”.

“Its strong economy, with major businesses, universities, hospitals and government services, has been further bolstered by ongoing infrastructure projects such as the North East Rail Link and the proposed Surburban Rail Link,” the director revealed.

With high-density dwellings comprising 86 per cent of residential property, rental yields are reliable and strong, making the City of Melbourne “a favourable option for long-term investors”.

2. City of Salisbury, Adelaide

The northern Adelaide region of Salisbury is another hotspot that the report recommends to investors.

The area is currently experiencing a construction boom, with developments like the Edinburgh Parks Precinct and Riverlea Estate leading property prices to witness growth rates of up to 20 per cent per annum.

Jobs are rising, and Hotspotting general manager Tim Graham noted: “As a result, vacancy rates are extremely low, with some postcodes reporting a rate of only 0.5 per cent.”

“Overall, the combination of affordable prices, a booming economy and strong investment opportunities make Salisbury an ideal location for entry-level investors,” Mr Graham observed.

3. City of Armadale, Perth

Over in Western Australia, southern Perth has seen “a remarkable turnaround in recent years”, according to Mr Ryder.

He revealed that the city’s post-COVID-19 upward trend “has persisted throughout 2023, making Perth the strongest property market in the nation”.

The City of Armadale is a particularly high performer due to its abundance of budget-friendly accommodation, proximity to major employment hubs and federal infrastructure projects.

A $4.3-billion ship building project, $4-billion container port, $1.8-billion lithium plant, and $800-million rail line and station are just a handful of Armadale’s upcoming projects.

Overall, the Armadale region of Perth “features some of the most budget-priced houses of any capital city,” according to Mr Graham.

4. Southern Moreton Bay Islands, Qld

For a touch of coastal leisure, Hotspotting noted that investors would do well to look to Queensland’s Moreton Bay.

With a population of around 8,000 people and median house prices in the mid-to-high $300,000 range, the Southern Moreton Bay Islands are “the most affordable locations in Greater Brisbane,” stated Mr Graham.

Another major drawcard are the regular ferry services that convey commuters to the Brisbane CBD, Brisbane Airport and the Port of Brisbane in under 60 minutes.

Mr Graham shared that the affordability of the Southern Moreton Bay Islands, “together with significant lifestyle appeal, has seen demand and sales activity rise since 2020”.

5. City of Canning, Perth

Perth is featured not once, but twice on the Hotspotting report, with Mr Ryder sharing that the City of Canning “has gone from strength to strength”.

The region is prophesied to become Perth’s southern CBD, with a 10-year City Regeneration Program, numerous industrial hubs and Western Australia’s largest shopping centre making Canning a honeypot for home buyers and investors alike.

Strong immigration is another asset, with nearly half of residents born overseas.

With this in mind, Mr Ryder feels “it’s little wonder the LGA is experiencing strong population growth, with residential construction expected to continue well into the 2040s to satisfy increasing demand”.