Top 20 suburbs for property investors from just $487,000

An open home sign on the sidewalk demonstrating a property is for sale and a row of houses in an Australian suburb.
Aussies looking to buy an investment property might be able to get a good discount in these suburbs. (Source: Getty)

Aussies who are looking to purchase an investment property, or just want to have some more power at the negotiating table, might want to look into these 20 suburbs.

New research commissioned by Well Money found Australia’s top 20 investment-grade suburbs where buyers had a negotiating edge.

The research began by considering every suburb in Australia, before filtering out suburbs that weren’t investment-grade, where demand had not been falling and where prices had not increased by at least 45 per cent over the past decade.

That left a small list of investment-grade suburbs where conditions were favourable to buyers and where investors knew they had plenty of bargaining power - because, even if a potential buyer offered a 10 per cent discount to the asking price, vendors would still be giving up only a fraction of the profits they'd made over the previous decade.

The top 20 suburbs are situated in Queensland (eight), New South Wales (five), Victoria (four), Tasmania (two) and Western Australia (one). The list includes six metro and 14 regional locations, as well as 17 house and three unit markets.

Well Money CEO Scott Spencer said the rankings were designed to help investors who wanted to buy in quality locations and held a negotiating edge over vendors.

“Buyers hold a negotiating advantage in each of these suburbs right now, because vendors have enjoyed capital growth of at least 45 per cent over the past decade. So, even if they were to reduce their asking price by 10 per cent, they’d still finish well ahead,” Spencer said.

“Another reason why buyers have the edge in these suburbs is because market conditions have been turning in their favour, as demand - relative to supply - has been falling.”

Spencer added that the suburbs in this report were quality, investment-grade locations, meaning there were plenty of renters looking for homes.

“All of them have low inventory levels - which will put upward pressure on price growth - and low vacancy rates - which will put upward pressure on rental growth. So, the data suggests that investors would be more likely than not to enjoy positive returns,” he said.

Top 20 suburbs

Here are the top 20 suburbs and the median home price as of December 2022:

  1. Alstonville, NSW, 2477 - $901,600

  2. Marong, VIC, 3515 - $574,240

  3. Valla Beach, NSW, 2448 - $560,000

  4. Caloundra West, Qld, 4551 - $749,000

  5. Burleigh Waters 4220, Qld - $1,495,000

  6. Highett, VIC, 3190 - $630,000

  7. Kellyville Ridge, NSW, 2155 - $508,250

  8. Kariong, NSW, 2250 - $952,750

  9. Figtree, NSW, 2525 - $1,070,000

  10. Somerville, VIC, 3912 - $800,000

  11. Pomona, Qld, 4568 - $950,000

  12. Donvale, VIC, 3111 - $825,000

  13. Mountain Creek, Qld, 4557 - $949,000

  14. Bald Hills, Qld, 4036 - $748,800

  15. Vasse, WA, 6280 - $487,990

  16. Mermaid Waters, Qld, 4218 - $1,699,000

  17. Geilston Bay, TAS, 7015 - $695,000

  18. Eaglehawk Neck, TAS, 7179 - $698,000

  19. Glass House Mountains, Qld, 4518 - $765,000

  20. Yarrabilba, Qld, 4207 - $540,800

Follow Yahoo Finance on Facebook, LinkedIn, Instagram and Twitter, and subscribe to our free daily newsletter.