Top 10 suburb picks for Australian investors

Sydney property prices are leading the current market downturn, and with interest rates tipped to continue rising as inflation surges, investors will need to be smart about their decisions. 

Mr Wargent explained that "stamp duty reform kicks in in mid-January next year, so first home buyers won't have to pay stamp duty for properties up to $1.5 million. 

It follows that that's going to be the best segment of the market to be in because there's going to be more there activity next year."

With Sydney prices being so high, that typically means that, for houses, NSW's major regional locations are going to be among the best bets for investors. 

Top 10 locations to buy a house in NSW – with a budget of up to approximately $1m

With rental vacancy rates at historic lows, asking rents rising rapidly and sale prices dipping, Sydney units are also offering excellent opportunities for investors. 

"Immigration has been fast-tracked now, and there's a massive skills shortage, so there will be a lot of people around," Mr Wargent said. 

"There will be a lot of demand for rentals which will bring investors back in. Most of the picks are driven with that dynamic in mind.

"In terms of the locations, you're looking at a unit in the traditional low-supply blue chip areas like the Eastern Suburbs and Northern Beaches."

Top 10 suburbs for investors to buy established units in Sydney – with a budget of up to around $1m

The report notes that "the best opportunities in the unit market are set to be in the established housing market rather than for expensive new builds. Look for boutique apartment blocks with a high land value content and units with a point of scarcity, such as a view."

Much like Sydney, the Melbourne market is beginning to wind back some of the monumental gains of the recent property boom. 

The report explains that "prior to the pandemic, Melbourne had become a global city, and its population growth was the strongest in Australia due to strong immigration. 

"This trend is likely to resume in 2023, and Melbourne is expected to be the largest capital city of Australia over the coming decade."

With that in mind, BuyersBuyers have picked out a variety of Melbourne suburbs expected to outperform, along with two selections from nearby Geelong. 

Top 10 locations to buy a house in Victoria – with a budget of approximately $800k to $1.2m

While houses in Victoria have outperformed units over the past decade, delivering excellent results for investors, the report notes that attached housing presents opportunities too. 

"Family-suitable apartments in small unit blocks in popular areas, where houses are out of reach, have also delivered solid capital growth and a healthy rental return," it reads. 

Top 10 suburbs for investors to buy established units in Melbourne – with a budget of $500k up to approximately $750k

The report concludes that "units have underperformed houses significantly in Melbourne over the past decade, and there are some opportunities for contrarian investors to pick up a bargain."

"The Brisbane market has been red hot over the past couple of years, so you need to be a bit careful about where and what you buy," Mr Wargent cautioned. 

With prices around south-east Queensland only just starting to dip, steering away from the highest peak prices in the most in-demand locations could be beneficial for investors. 

"In terms of the selections generally we're looking at median priced or below types of properties," he said. 

"If you're looking at places like the Sunshine Coast and Gold Coast, you're generally looking away from the blue-chip areas, because they've become phenomenally expensive. Look at the secondary markets out there, places like Tewantin and Buderim."

Top 10 locations to buy a house in Queensland –with a budget of $800k up to approximately $1m

While prices remain high for the state, an excessively tight rental market presents strong opportunities for both houses and units. 

"Much of south-east Queensland is suffering from a chronic shortage of available rental stock as population growth has boomed," the report reads. 

"There is little respite on the horizon, and we expect rental vacancies to remain extremely tight over the year ahead."

Top 10 suburbs for investors to buy established units in Queensland – with a budget of $500k up to a maximum of $750k

With the Olympics coming to Brisbane in 2032, investors considering the long-term are wisely eyeing off the city as the market looks set to benefit many years beyond the Games. 

"If you're looking at where investors have been most interested, Adelaide has been a real hotspot in recent months," Mr Wargent said.

Both Adelaide and regional South Australia have experienced a remarkable property boom, and it's the only state where strong growth is continuing. 

"The rental market is an absolute quagmire at the moment, it's the lowest vacancy rate ever recorded for a capital city, 0.3 per cent.

"There are stories in the media about studio units renting for $400 a week. If rents are going to spike, that's generally going to bring investors into that market as an inflation hedge as much as anything else."

Top 10 suburbs for Adelaide investors – with budgets ranging from $450,000 upwards

"Property in South Australia is more affordable than in other more populous states, and while interest rates are still low, it remains cheaper to buy than rent, delivering further strong demand for houses," the report reads. 

"There is a compelling case for investors to seriously consider a suburban house in Adelaide, particularly for those mindful of their entry price and seeking an attractive rental yield as property prices remain very reasonable."