Top investments spots for yield and capital growth revealed

New research and analysis from depreciation experts Washington Brown, in partnership with Hotspotting, has delivered The Pulse report, which has identified the top property performers around the nation.

Washington Brown director Tyron Hyde said the top 10 high yield locations all had median prices under about $600,000, as well as yields above six per cent.

They can be found in the Northern Territory, New South Wales, Queensland, Western Australia, and Victoria.

“The Australian property market continues to present lucrative opportunities for investors, particularly in locations offering high rental yields, across both houses and units,” Mr Hyde said.

“Our top 10 selected locations are characterised by strong economic fundamentals, affordable property prices, and high rental demand.

“All of these factors contribute to their attractiveness as investment destinations, offering potential for significant returns.”

Hotspotting director Terry Ryder said the research also highlighted the unique economic drivers and infrastructure developments that underpin the growth and stability of these markets.

'These Aussie suburbs have outpaced the rest': youtube.com/mortgagechoice

“By examining key metrics such as median prices, growth rates, rental yields, and vacancy rates, our research provides a comprehensive overview of the most promising areas for property investment, including above average yields and potential for future capital growth,” Mr Ryder said.

Mr Hyde said investors in the top 10 locations were also benefiting from thousands of dollars-worth of depreciation benefits each year.

“Across the top 10 locations, annual taxation benefits potentially range anywhere from $2700 to nearly $6500, depending on the type of property and the location,” he said.

Mr Hyde said affordable buy-in prices produced superior yields across the top investment locations.

Queensland is home to several of the top investment locations in Australia at the moment. Picture: Getty

Top 10 investment locations with the highest yields

Mr Hyde said Rockhampton’s diverse economy is thriving, bolstered by billions in infrastructure projects. “This surge in development has created jobs, driving housing demand and keeping vacancies at zero,” he said.

“Despite rising prices, Rockhampton remains affordable compared to capital cities, making it a prime investment spot.”

Mr Ryder said Moree is poised for significant growth as a Special Activation Precinct, focusing on agribusiness and logistics.

“The Inland Rail Link enhances its connectivity, and affordable housing prices coupled with high yields make it an attractive investment location,” he said.

This two-bedroom house in Moree is currently on the market for $375,000. Picture: realestate.com.au

Mr Hyde said Geraldton, the largest city north of Perth, is experiencing rapid growth.

“Its strategic location between resource-rich regions ensures continued prosperity,” he said. “Affordable housing and strong rental demand make Geraldton a standout for investors looking for long-term performance.

Mr Ryder said Greater Darwin’s property market is rebounding, driven by massive infrastructure projects and population growth.

“High yields and affordability compared to other regions make Leanyer a top choice for investors,” he said.

This three-bedroom house in Spalding is currently open to offers over $380,000. Picture: realestate.com.au

Mr Hyde said Cairns’ economy is diversifying beyond tourism, with growth in healthcare, agriculture, and construction.

“Affordable prices and low vacancies make Holloways Beach an appealing investment location,” he said

Mr Ryder said Townsville’s diverse economy, bolstered by major projects and strong employment opportunities, makes it a consistent and affordable property market.

“Significant investments in healthcare and defence further enhance its appeal,” he said.

This three-bedroom Douglas unit is currently on the market open to offers over $399,000. Picture: realestate.com.au

Mr Hyde said Larrakeyah’s proximity to military bases and high rental demand make it a popular choice for investors.

“The suburb’s growing population and development projects are driving economic recovery,” he said.

Mr Ryder said Mackay’s robust economy, fuelled by mining and agriculture, positions it as a key regional hub.

“Recent infrastructure investments highlight its ambition to sustain and expand its economic base, making it an attractive investment location,” he said.

This three-bedroom Larrakeyah apartment is currently on the market with an asking price of $620,000. Picture: realestate.com.au

Mr Hyde said Coconut Grove’s affordable prices and high percentage of renters make it a solid investment location.

“Ongoing projects in Darwin are creating jobs and boosting the local economy, enhancing its investment appeal,” he said.

Mr Ryder said Carlton’s proximity to universities and high rental demand, coupled with new developments, make it a prime investment location.

“The suburb’s vibrant dining district and student population also drive its strong rental market,” he said. 

This two-bedroom Coconut Grove apartment is currently on the market with an asking price of $395,000. Picture: realestate.com.au