ME reveals the top 20 suburbs for Australian property investors

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After retreating during the early stages of the pandemic, it appears that investor interest in the property market has come roaring back. At least, that’s the picture painted by the latest home loan data from the Australian Bureau of Statistics (ABS).

Lending figures from the ABS reveal that after dropping to a decade-low $4.2 billion in May 2020, new loan commitments made by investors have marched higher and higher in the year and a half since.

New borrowing reached $9.6 billion in September (the latest data available) suggesting that - unlike owner occupiers who have been backing away from new loans - investors may be less fazed by rising property prices. At least, for now. 

And it’s with this backdrop of strong investor enthusiasm that ME Bank has released a new report which explores the best places in Australia for investors to buy.

Based on research conducted by planning and economics firm Ethos Urban, the report outlines the top 20 suburbs in the country for residential property investors to buy in, based on criteria such as population growth, rental yields, house and rental prices, transport infrastructure and the attractiveness of suburbs to renters.

So which areas came out on top? Woolloongabba, in Brisbane’s inner east, took out the number one spot, followed by fellow Sunshine State suburb Burleigh Heads in second and Sydney’s Five Dock in third.

Overall, suburbs in New South Wales accounted for 45% of the top 20 followed by those in Queensland which made up 25% of the list. Here’s the full rundown:

Australia’s top 20 best places to invest - ME

SuburbPrimary dwelling type
1. Woolloongabba (QLD)Apartment
2. Burleigh Heads (QLD)Apartment
3. Five Dock (NSW)House
4. North Melbourne (VIC)Apartment
5. Rozelle (NSW)Townhouse
6. Ellenbrook (WA)House
7. Parramatta (NSW)Apartment
8. Crows Nest (NSW)Apartment
9. Preston (VIC)House
10. South Melbourne (VIC)Apartment
11. Yanchep (WA)House
12. Waterloo (NSW)Apartment
13. Coffs Harbour (NSW)House
14. North Sydney (NSW)Apartment
15. Pyrmont (NSW)Apartment
16. Claremont (WA)House
17. Mermaid Beach (QLD)Apartment
18. Miami (QLD)Apartment
19. Concord (NSW)House
20. Fairfield (QLD)House

According to ME’s Consulting Demographer, Chris McNeil, one of the common themes that links the top performing suburbs as being potentially good areas for investors is new transport infrastructure.

“Woolloongabba, for example, is already serviced by two train stations and the new Cross City Rail Project will provide a new line running directly under the suburb, increasing connectivity and changing the way people use the area. This will only be bolstered in the coming years as Brisbane prepares its infrastructure for the 2032 Olympics,” he said.

“Add to this the exciting atmosphere in Logan Street, its rapid population growth and steady house price growth, it really does offer a unique opportunity for those looking to invest in the residential property market.”

McNeil also noted that while there were no suburbs in the ACT, Northern Territory, South Australia or Tasmania on the top 20 list, that was more of a reflection of some of the major infrastructure projects being developed in the other states and not due to a lack of investment options.

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Weighing up a property investment move of your own in the near future? While you’re researching great locations to buy in, don’t forget to take the time to find a home loan that suits your needs too.

Our investment loans comparison table makes it easy to compare interest rates, fees, features and more on a range of loans all in the one place. Or if you’re interested in getting started straight away, check out some of the great offers in the table below.

Compare investment home loans - last updated 9 August 2022

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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

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