2025’s hotspot suburbs for buyers on the average income

I’m here to tell you that you don’t need to be rich to invest, in fact property is one of the best ways to secure your financial future.

In 1998 the total value of housing in Australia was $1 trillion. Today, it’s a whopping $11 trillion.

Despite sentiment to the contrary, there are plenty of affordable locations for “mum and dad” investors across this great country right now.

Property prices at the affordable end of the market don’t crash. They go up, they flatline, and then they go up again. During the past 50 years the median house price in Australia has only gone down four times: 3 per cent in 1998; 4 per cent in 2011; 6 per cent in 2018; and 3.5 per cent in 2022.

I’m talking about the affordable end of the market—the median house price. Data shows that the $5 million-plus market has dropped by up to 25 per cent in certain areas and that the $2 million-plus market has declined by 15 per cent.

The Australian Tax Office releases data every couple of years that provides a snapshot of Australia’s 2.3 million property investors.

While it probably doesn’t come as a shock that CEOs and general managers top the list, it may surprise many that nurses come in third and teachers, admin assistants, sales assistants, police officers, and office clerks all make it into the top 20.

The solution to the current housing crisis won’t come from homeowners upgrading their existing homes but from first-home buyers and new investors.

Recent data from the Australian Bureau of Statistics shows that between them, the average Australian couple working in the private sector earns $191,000, while those working in the public sector earn a combined pre-tax income of $219,000.

When factoring in the 30 per cent mortgage threshold and the 3 per cent buffer the banking regulator APRA asks Australian banks to factor in when assessing borrowers’ ability to repay loans, research conducted by JLF Group proves that there are plenty of affordable suburbs for ‘mum and dad’ investors looking to break into the Australian investment market right now.

Brisbane, Perth, Adelaide and the outskirts of Melbourne retain relatively good affordability.

Affordability cushions the effects of property cycles. It also ensures that when you decide to sell your investment property, you know that anyone with a job will be able to buy it.

The key to selecting the right location for investment is to find areas with growing populations.

Those are the usually going to be locations that are close to big employers, so something close to hospitals, universities, industry areas, that type of thing.

Of course, you still need to select the right type of property in these locations. We believe houses are generally a better investment than units. That’s because houses come with land and land is what appreciates, while physical buildings depreciate from the moment they are finished.

Investors in these locations should be looking for, where possible, new builds. Newly built homes offer better tax depreciation benefits, are usually easier to rent or a higher rent than existing properties and have lower maintenance costs.

I’ve pulled together a list of recommended locations for mum and dad investors to consider. They’re surrounded by multiple job hubs and have good existing and future-planned infrastructure.

If there is one piece of advice I’d impart, it is that investors shouldn’t be put off too much by the median house price of a location when doing their research.

2025’s (relatively) affordable hotspots

SOUTHEAST QUEENSLAND

SUBURB	LGA	TYPE	MEDIAN PRICE	RENTAL YIELD
Ripley	Ipswich	HOUSE	$705,400	4.4%
South Ripley	Ipswich	HOUSE	$731,750	4.3%
Deebing Heights	Ipswich	HOUSE	$700,000	4.2%
Morayfield	Moreton	HOUSE	$747,813	3.9%
Springfield Lakes	Ipswich	HOUSE	$750,000	4.2%
Holmview	GC	HOUSE	$748,279	4.1%
Flagstone	Logan	HOUSE	$705,000	4.5%
Logan Reserve	Logan	HOUSE	$721,900	4.5%

Ripley and Ripley South are our top picks. Ripley’s population is tipped to grow substantially in the next decade and there is plenty of infrastructure being built there.

It is a State Government Priority Development Area, with the State Government announcing in August it would commit $21 million to help unlock more land in the area, by providing money for road infrastructure.

Deebing Heights is forecast to grow 9.2 per cent in the next 25 years. The suburb has access to two motorways and there is a proposed 25km rail extension from Ipswich to Springfield in the works.”

It also has a school, two university campuses and three hospitals, which gives it attraction long-term.

Rosewood is another growth suburb that boasts transport infrastructure, good healthcare and education appeal and affordable median house prices that offer good rental returns.

WESTERN AUSTRALIA

SUBURB	LGA	TYPE	MEDIAN PRICE	RENTAL YIELD
Yanchep	Wanneroo	HOUSE	$635,000	4.9 per cent
Eglinton	Wanneroo	HOUSE	$647,500	5.0 per cent
Alkimos	Wanneroo	HOUSE	$642,000	5.2 per cent
Ellenbrook	Swan	HOUSE	$630,000	5.6 per cent
Baldivis	Rockingham	HOUSE	$651,000	5.1 per cent
Byford	Serpentine-Jarrahdale	HOUSE	$650,000	5.4 per cent
Bertram	Kwinana	HOUSE	$620,000	5.1 per cent
Forrestfield	Kalamunda	HOUSE	$650,000	5.1 per cent
Lakelands	Mandurah	HOUSE	$630,000	5.2 per cent

The state capital has some great affordable investment opportunities for newcomers to the market.

Yanchep is our top pick in the West, not only because it has a compounding population growth projection of 12.2 per cent over the next decade, but it also has had a new train line open this year and healthcare and educational infrastructure is good.

Eglinton and Alkimos, which are both in Wanneroo, each have a projected population growth of 10 per cent in the next 10 years and boast four employment clusters – Butler, Joondalup, Mindarie Marina and Perth city.

Bertram within the City of Kwinana has plenty going for it. It’s a 15-minute drive to Rockingham Bach and is close to Garden Island, which houses the Navy base, HMAS Stirling, where more than 3,000 people work.

That makes it an ideal location for investment, with demand from Naval personnel to rent in nearby suburbs.

Mandurah is also a good option. It is part of the Peel Region which will benefit from the Transform Peel Program, a 35-year project aimed at creating new industries and jobs in the region. It aims to generate 33,000 new jobs by 2050 and is expected to inject $16 billion into the WA economy.

VICTORIA

SUBURB	LGA	TYPE	MEDIAN PRICE	RENTAL YIELD
Tarneit	Wyndham	HOUSE	$650,000	4.3 per cent
Fraser Rise	Melton	HOUSE	$710,000	4.1 per cent
Rockbank	Melton	HOUSE	$631,000	4.1 per cent
Clyde North	Casey	HOUSE	$730,000	4.4 per cent
Wyndham Vale	Wyndham	HOUSE	$587,000	4.2 per cent
Werribee	Wyndham	HOUSE	$620,000	4.1 per cent
Cobblebank	Melton	HOUSE	$635,000	4.0 per cent
Diggers Rest	Melton	HOUSE	$655,000	4.3 per cent
Mickleham	Hume	HOUSE	$680,000	4.2 per cent

Tarneit is the best option for new homebuyers in Victoria. With a population growth forecast at 18.1 per cent, the outer Melbourne suburb is conveniently located near the Western Freeway and Tarneit railway station.

It has about 1,500 job opportunities and for families has a school catchment with five schools and the main health service is Tarneit Family Medical Centre.

The Melton suburbs of Fraser Rise and Rockbank are up there with the best areas for investors too. Each has freeway access, and a thriving job market and five schools between them.

Rental yields in the suburbs we recommend are between 4 per cent and 4.4 per cent.

SOUTH AUSTRALIA

SUBURB	LGA	TYPE	MEDIAN PRICE	RENTAL YIELD
Virginia	Playford	HOUSE	$790,000	4.2 per cent
Munno Para	Playford	HOUSE	$528,000	5.1 per cent
Aldinga Beach	Onkaparinga	HOUSE	$710,000	4.1 per cent
Lewiston	Adelaide Plains	HOUSE	$810,000	4.5 per cent
Mount Barker	Mount Barker	HOUSE	$671,500	4.4 per cent
Evanston	Gawler	HOUSE	$508,501	5.2 per cent
Hayborough	Victor Harbour	HOUSE	$615,000	4.2 per cent
Mawson Lakes	Salisbury	HOUSE	$750,000	4.2 per cent
Murray Bridge	Murray Bridge	HOUSE	$455,000	5.2 per cent

Virginia is the top pick for investors in South Australia. There are two schools in the area as well as major transport routes, including the Northern Expressway connecting residents to Adelaide and the surrounding areas.

Munno Para West is in the City of Playford in the northern suburbs of Adelaide. It has an extremely affordable median house price. The area is tipped to grow substantially in the coming years. It is close to the RAAF Base in Edinburgh which is home to 3500 Army and Airforce personnel.

It has access to schools and health facilities and is conveniently situated near the Elizabeth City Centre precinct.

Population forecasts suggest Virginia and Munno Para West will grow 17.1 per cent and 13.5 per cent in the next decade, respectively, which will go a long way to ensuring there is a need for housing.

NEW SOUTH WALES

SUBURB	LGA	TYPE	MEDIAN PRICE	RENTAL YIELD
Austral	Liverpool	HOUSE	$933,500	4 per cent
West Hoxton	Liverpool	HOUSE	$1,245,000	4 per cent
Castle Hill	The Hills District	HOUSE	$2,350,000	3.8 per cent
Kellyville	The Hills District	HOUSE	$1,915,000	3.8 per cent
North Kellyville	The Hills District	HOUSE	$1,700,000	3.8 per cent
Leppington	Camden	HOUSE	$1,155,000	3.8 per cent
Oran Park	Camden	HOUSE	$1,091,250	3.7 per cent
Rouse Hill	The Hills District	HOUSE	$1,455,000	3.8 per cent
Box Hill	The Hills District	HOUSE	$1,660,000	3.8 per cent

Austral and West Hoxton are top of our list in NSW, each is expected to grow 8.5 per cent in the next decade and there are nine schools in each and access to Liverpool hospital.

Further to this, we like The Hills district, which is home to Castle Hill, Kellyville, North Kellyville, Rouse Hill and Box Hill.

The Hills district has benefited significantly from the New South Wales Government’s investing in the metro, adding eight new stations and five upgraded stations in recent years.

It doesn’t hurt that they are serviced by Castle Hill and Paramatta employment clusters. There are rail stations and access to major motorways, and the health infrastructure is great too.

That’s why we advise investors not to be put off a location by median house price, as it does not reflect what everything in a location is selling for.