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Top 10 ‘under-the-radar’ markets gaining momentum
From regional cities driven by employment to metropolitan suburbs supported by infrastructure spending, here are 10 regions tipped for long-term growth.
The latest Hotspotting National Top 10 Best Buys report has identified the nation’s 10 top locations as well-positioned for long-term capital growth.
The suburbs were ranked based on the fundamentals necessary to support growth, including depth of demand, sales activity, rental conditions, and affordability.
Hotspotting founder Terry Ryder said the approach was designed to identify growth regions before they become widely known “hotspots”.
“Our latest research is about identifying future growth markets before the best years of price growth have been fully priced in,” Ryder said.
Here are the top 10 regions where investors can secure long-term growth supported by market fundamentals.
Greater Hobart, Tasmania
Hotspotting director Tim Graham said the Greater Hobart region had re-emerged as one of the country’s most balanced capital city markets, with interest driven by affordability, lifestyle appeal and a deepening economic base.
“Vacancy rates remain critically low. With many suburbs sitting below 1 per cent, while yields remain comparatively strong for a capital city.”
“Affordable suburbs such as Glenorchy, Rokeby, Kingston, and Howrah continue to attract both investors and owner-occupiers.”
Belmont, Western Australia
Located in Perth’s inner east between the CBD and the airport, Ryder said Belmont’s unit market had emerged as one of Perth’s strongest opportunities due to a rare combination of affordability, yield and location.
He said median unit prices remained accessible to a range of buyers, ranging from $580,000 to $615,000, with yields of almost 6 per cent.
“Median unit prices remain accessible at $580,000 to $615,000, while yields sit between the mid-5 per cent and 6 per cent range,” Ryder said.
“Belmont is one of the few Perth markets where affordability and yield still align, and that’s increasingly rare.”
West Torrens, South Australia
To the west of Adelaide’s CBD and benefitting from access to key infrastructure such as the airport and various hospitals, Graham said West Torrens was one of the city’s most strategically located markets.
He said units were an appealing prospect for investors, with an entry point below $500,000 in some areas and strong growth in the surrounding suburbs of Plympton and West Beach.
“West Torrens is one of Adelaide’s most reliable performers because it combines affordability with proximity to billions in infrastructure,” he said.
“Major investment, including the $600 million airport upgrade, the $15 billion T2D tunnel and the $1 billion Southwark Grounds urban renewal project, continues to reshape the region.”
Greater Bendigo, Victoria
Ryder said Greater Bendigo had emerged as one of the top local government areas (LGA) in the nation, with a dozen suburbs showing rising transaction levels.
The city was supported by its affordability, internal migration, and an economy supported by health and education infrastructure, according to Ryder.
“Bendigo is a classic long-term compounder with steady demand, steady population growth and infrastructure investment,” Ryder said.
“Many suburbs remain in the $500,000 to $650,000 range, while yields are solid and vacancy rates remain tight.”
Sunshine Coast Rail Towns, Queensland
Graham said a collection of towns along the Sunshine Coast rail line, including Beerwah, Landsborough, Mooloolah Valley, Nambour, and Palmwoods, all presented opportunities for investors supported by a mix of lifestyle appeal and affordability.
He said that Nambour remained the pick of the bunch, with strong demand from young families and tree-changers.
“Many towns have recorded double-digit average annual growth over five years, supported by tight vacancies and rising rents,” he said.
“The rail towns are the Sunshine Coast’s quiet achievers, and they offer the same economic upside at a fraction of the price.”
Muswellbrook, NSW
The Hunter Valley locality of Muswellbrook was identified as a region with strong growth potential, driven by investment into renewable energy projects.
Ryder said Muswellbrook combined affordability with high yields as the region transitions from coal-fired generation to solar, wind, battery and pumped-hydro projects.
”Muswellbrook is one of the few NSW markets where investors can still secure both value and yield,” Ryder said.
“Rising transaction levels point to future price momentum as the region transitions into a renewable energy hub.”
Greater Dandenong, Victoria
Dandenong in Melbourne’s south east has started to emerge as one of the city’s strongest value-based markets, underpinned by industrial and urban renewal.
The region is one of Victoria’s major manufacturing hubs, with its property market supported by proximity to employment opportunities, according to Graham.
“The combination of affordability, transport access and large-scale urban renewal makes Dandenong one of the most compelling value markets in metropolitan Melbourne.”
City of Parramatta, NSW
As Sydney’s second CBD, Parramatta’s fundamentals for growth are supported by a multi-billion-dollar economy and infrastructure investment, according to Ryder.
He said units in Parramatta offered investors a more affordable entry point than houses, while returning strong yields of above 5 per cent.
“Parramatta is a scale market that includes deep employment, deep infrastructure and deep demand. The key is choosing the right type of unit,” Ryder said.
“Established, low-density units near transport and health precincts offer the strongest long-term performance, while high-rise oversupply remains a risk.”
City of Ballarat, Victoria
The former gold-mining town of Ballarat had emerged as a property market supported by affordability, population growth and infrastructure spending.
Graham said the city’s economy was built on health care, education, tourism, construction and renewable energy.
“Ballarat continues to prove why it’s one of regional Victoria’s most dependable performers,” Graham said.
“Ballarat’s economic diversity and strong livability credentials continue to attract buyers seeking space, value and connectivity to Melbourne.”
Wagga Wagga, NSW
According to Ryder, the regional city of Wagga Wagga was one of the state’s most balanced and resilient markets, driven by employment and infrastructure spending.
Ryder said the city’s combination of median prices significantly below capital city levels and double-digit annual growth over a five-year period has seen more investors flock to the regional hotspot.
“Wagga Wagga has the fundamentals investors look for, including affordability, strong yields and a diverse economic base.”
“Rising transaction levels, population growth and major housing estates will continue to support long-term demand,” Ryder concluded.
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