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Top 10 long-term capital gain regions unveiled
From bustling regional centres to capital cities, here are the 10 regions anticipated to perform strongly for investors chasing long-term returns in 2026.
In its latest National Top 10 Best Buys Report, Hotspotting identified the top regions likely to experience growth over the next 12 months.
Hotspotting founder Terry Ryder said the identified regions were suitable for long-term investment with lower risk than short-term performance.
“We’re thinking about what the market can deliver over five and 10 years, not whether it has had a good recent quarter,” Ryder said.
“We’re looking for depth of demand, consistent sales activity, tight rental conditions, diverse economies, and clear drivers such as infrastructure investment, employment growth, and population shifts.”
Hotspotting director Tim Graham said some markets that had recently emerged as leaders in price growth had already begun to show signs of performance waning.
“Darwin is a prime example. It continues to rank strongly, but market heat and competition have lifted to the point that buying well is increasingly difficult,” Graham said.
Similarly, he said that while some pockets persist, the Perth market had now moved away from its strong performance.
“There are now better ‘next wave’ opportunities elsewhere for buyers who want to get ahead of the cycle.”
Inner Brisbane, Queensland
Ryder said the increase in infrastructure spending and connectivity had driven demand for suburbs within eight kilometres of the Brisbane CBD to new highs.
“What makes this market distinctive is its housing mix – apartments and townhouses dominate, reflecting the national shift toward living in inner locations.”
“This trend matters because it broadens the buyer pool and supports repeatable demand, even when detached homes become out of reach.”
Sunshine Coast, Queensland
Graham said the Sunshine Coast was no longer just a holiday destination, but had established itself as a significant growth region driven by migration.
“That influx is being matched by investment across health, education, tourism and digital infrastructure.”
“Property demand is broad-based; lifestyle buyers, workers linked to new precincts, and investors drawn by rental conditions.”
He added that the new city centre in Marrochydore would attract high-value workers, premium residential development and technology-led business.
To capitalise on the Sunshine Coast’s growth, Graham said the best investment strategy was to prioritise properties near employment nodes with strong transport links.
Greater Hobart, Tasmania
According to Ryder, high-value industries and an investment pipeline constrained by physical limitations would strengthen Hobart’s market.
“Economically, it is anchored by health care, marine science, advanced manufacturing and Australia’s Antarctic research sector, all drivers that create stable employment and consistent housing demand.”
He noted that upcoming housing targets will enhance established suburbs while preserving the scarcity that underpins long-term growth.
He said the suburb of Glenorchy in Hobart’s north was “carrying much of the region's momentum”, whilst still providing an affordable entry point for buyers to enter into the Hobart market.
Greater Launceston, Tasmania
Graham said that, with a diverse economy supported by affordable housing options, Launceston offered investors the prospect of repeatable future price growth without “big-city price points”.
“The forward drivers in the region are significant with a major, multi-year upgrade of the Launceston General Hospital set to expand health capacity and lift employment.”
“Renewable energy projects proposed and approved across the region add another layer of job creation and investment confidence.”
City of Casey, Victoria
According to Ryder, the city of Casey in southeast Melbourne stands out as an investment prospect due to its strong turnover at affordable price points.
“The local government area (LGA) has delivered steady growth for many years and continues to record exceptional sales volumes across multiple suburbs, which is a sign of depth and liquidity rather than a one-pocket story,” he said.
He said the suburb remained affordable for buyers, with median house prices in the low $600,000s, which will keep first home buyers active and support a reliable baseline of demand.
To make the most of investment opportunities in the region, Ryder said that investors should look to suburbs with strong community links, such as schools, transportation and other services.
Greater Geelong, Victoria
Geelong had shifted from a manufacturing base to a diversified economy with genuine scale, making it an attractive prospect for those looking for strong capital growth, according to Graham.
“The region already supports a large population and is forecast to grow substantially over the coming decades, underpinning long-run housing demand.”
“That growth is being matched by record infrastructure investment and a widening industry mix across defence, health, education, and logistics.”
“The pipeline is material. Council capital works are being backed by significant state and federal projects, including major business park development, rail upgrades, health investment and new civic infrastructure.”
Latrobe City, Victoria
Ryder said that Latrobe City had emerged as a standout region in Victoria, positioning itself as both a growth and yield market where buyers are set to benefit from affordability and improving economic drivers.
“With several local house markets still below $400,000, Latrobe offers an entry point that is increasingly rare in Victoria, while maintaining the lifestyle appeal that supports ongoing buyer demand.”
“For investors, the fundamentals are practical. Yields are strong, vacancy rates are low, and the rental market is underpinned by a broad local employment base as well as an evolving economic story that includes diversification.”
Tamworth, NSW
Driven by a diversified economy and supported by a growing infrastructure pipeline, Graham said that Tamworth had all the signs of a property market prepared to surge.
“It services a wide northern NSW catchment and benefits from agriculture, mining, tourism, aviation, health care and education, reducing reliance on any one industry,” he said.
“Tamworth also sits within an emerging renewable energy region, with more than $10 billion of projects proposed or approved, including large-scale storage.”
Parramatta, NSW
According to Ryder, Parramatta was one of the clearest “next decade” stories in Sydney, as it consolidates its role as the city’s second CBD.
“With a gross regional product around $31 billion, the area is being reshaped by a dense pipeline of transport, civic and precinct investment that lifts jobs, amenity and long-term demand for well-located housing,” he said.
“Momentum is being reinforced by major city-making projects including Sydney Metro West and Parramatta Light Rail, the continued build-out of Parramatta Square, and further civic upgrades such as the Civic Link boulevard, parkland improvements and town-centre works.”
Hunter Valley, NSW
With an economy supported by population growth and a major infrastructure pipeline, Graham said the best investment strategy in the region is to target established hubs and communities.
“While mining remains a major output driver, the region’s employment base is broader than headlines suggest, with health care and social assistance the largest employer, alongside agriculture, defence, manufacturing, tourism and a globally significant thoroughbred industry.”
“Large road projects, bypass works and planning for faster links between Sydney and Newcastle support accessibility, freight efficiency and commuter demand, which can translate into sustained housing pressure,” Graham concluded.