Investment hotspots: Australia's hottest suburbs for savvy property investors revealed

REA Group's Hot 100 suburbs for 2025 collated insights from industry leaders, including heads of major agencies, buyer's agents, researchers, investors, academics, and PropTrack economists, to identify standout suburbs based on lifestyle, demographic, and economic factors.

Many of these suburbs are excellent for investors due to high rental yields, affordability, and strong rental growth.

There has been a decline in property investors in recent years, triggered by low demand during pandemic lockdowns, interest rate rises, increased property prices, and unfavourable legislation in some states.

Nonetheless, 2024 saw a rebound, with a 19% rise in new lending commitments to investors over the past 12 months.

Among the top 100 suburbs, many boast impressive rental yields alongside affordable house and unit median prices.

These suburbs are spread across various states, with a significant concentration in Western Australia.

Take a look at the top 10 suburbs with the highest rental yields from this year’s hot 100 list.

Broome

This two-bedroom unit in Broome is currently on the market and open to offers over $479,000. Picture: realestate.com

Leading the way is Broome in Regional WA, a tourist magnet with thriving agriculture and mining industries.

The suburb offers a rental yield of 7.2% for houses and 7.7% for units.

With a median house price of $772,000 and units at $459,000 as of November, Broome is more affordable than many city suburbs.

Moreover, house prices have surged by 27% and unit prices by 12% in the last year.

Broome presents a promising opportunity for investors, thanks to its steady influx of workers and tourists.

Rockhampton

This three-bedroom house in Rockhampton is currently on the market with a price guide between $500,000 and $550,000. Picture: realestate.com.au

Renowned for its cattle and fishing industries, Rockhampton in Central Queensland is termed the beef and barra capital of Australia.

The median house price stood at $345,000 in November, with a rental yield of 7.1%.

Its appealing coastal proximity makes it popular with tourists, and the river attracts anglers from all over the country.

Braitling

This three-bedroom house in Braitling is currently on the market with an asking price of $439,000. Picture: realestate.com.au

Alice Springs features on the top 100 list with Braitling recognised for its investment potential.

A steady demand from tourists and government workers secures a yield of 6.8% on units and 6.2% on houses.

The median house price is $455,000, making properties in Braitling highly affordable.

Geraldton

This three-bedroom house in the Geraldton suburb of Beachlands is currently on the market with an asking price of $525,000. Picture: realestate.com.au

Geraldton in regional WA is a crucial port town for mining exports and a popular tourist stop.

Rental properties enjoy high demand, providing investors with yields of 6.1% for houses and 7.6% for units.

Median prices are budget-friendly at $405,000 for houses, and $274,500 for units.

Kirwan

This three-bedroom house in Kirwan is currently on the market with an asking price of $420,000. Picture: realestate.com.au

This Townsville suburb in far north Queensland attracts investors with affordable homes, solid price growth, and strong demand.

Kirwan offers a 5.5% yield on houses and 6.7% on units.

Reduced supply has heightened demand, boosting property values and rental prices.

East Victoria Park

This one-bedroom apartment in East Victoria Park is currently on the market for $275,000. Picture: realestate.com.au

East Victoria Park ranks highest among capital city suburbs for rental yield, with units yielding 7%.

Known for period homes, good schools, and green spaces, its median unit price was $495,000 in November, with 24% annual growth.

West Leederville

This one-bedroom apartment in West Leederville is currently on the market for $270,000. Picture: realestate.com.au

Located just 3km from Perth's CBD, West Leederville is known for its cafes, dining, schools, and transport links.

Units offer a 6.5% rental yield, assisted by new affordable apartment developments.

The median unit price was $462,000 in November, with a median rent of $523.

Bassendean

This three-bedroom villa in Bassendean is currently on the market with a price guide of $635,000. Picture: realestate.com.au

Close to Perth's city centre, Bassendean has seen gentrification that has boosted demand.

The median rental yield for units is 6.3% with a price tag of $495,000.

Prices and rents have shown upward trends, underlining its investor appeal.

Mount Lawley

This three-bedroom villa in Mount Lawley is currently on the market and open to offers from the mid $900,000's. Picture: realestate.com.au

One of Perth’s most desired suburbs, Mount Lawley is celebrated for its nightlife, heritage homes, and proximity to the city.

With unit yields at 6.3% and a median price of $455,000, it's a more accessible option compared to nearby suburbs.

Bayswater

This two-bedroom unit in Bayswater is currently on the market for $415,000. Picture: realestate.com.au

Predominantly consisting of homes from the 1960s and '70s, sitting on large blocks, Bayswater’s increased housing supply from subdivisions has attracted attention.

With a 6.3% yield and $410,000 median unit price, it's grown by 42% annually.

Unit rents have surged by 18% in the past year.

These suburbs represent just a portion of this year's hot 100 list - explore the complete list to see if your suburb made the shortlist.

This article first appeared on realestate.com.au and has been republished with permission.