Unearthed: The regional areas ripe for investment

New analysis has revealed some of Australia’s most promising non-capital city property investment markets, where would-be buyers can find relatively affordable opportunities.

Real estate analytics firm Suburbtrends looked at secondary cities within 200km of a capital and applied more than a dozen key metrics to unearth suburbs that deliver a minimum 4.5 per cent yield.

Kent Lardner, Suburbtrends’ chief analyst, said the research took into account rental affordability, location, socio-economic ranking, price growth, inventory levels and vacancy rates.

That criteria narrowed the search to four regions – Bunbury and Mandurah in Western Australia, and the Gold Coast and Sunshine Coast in Queensland.

“Bunbury boasts the highest count of suburbs making the cut at 12, as well as the most listings available, most house options and the best median yield at 6.2 per cent,” Mr Lardner said.

“This combination of factors portrays Bunbury as an attractive market for both investors and

potential homebuyers.”

Among the suburbs identified was Binningup, which provides a strong market for house investments – with seven currently on the market at a median price of $499,000 and a rental median of $550 per week, yielding a very healthy 7.94 per cent.

College Grove was also a strong pick, with four houses currently on the market at a median price of $492,000 and a rental median of $510 per week, yielding 5.89 per cent.

“Bunbury stood out in our analysis, not just for its gateway status to the southwest region but for the balance it offers between liveability and investment appeal,” Mr Lardner said.

“Its unique characteristics align well with our criteria, making it a significant highlight in our shortlist.”

Meanwhile, the analysis produced 11 suburbs on the Gold Coast that fit the bill – a region that “excels in rental market dynamics”.

Among them was Bundall, a popular spot for investors. There are currently 12 units available at a median price of $557,000, yielding 5.76 per cent.

A few hours up the road, the Sunshine Coast was another strong performer in the analysis with a host of qualities that indicate a “mature and stable property market”.

Among the picks was the suburb of Wurtulla, which stood out for its unit prospects with four apartments on the market at a median price of $645,000, yielding 4.71 per cent.

Mr Lardner said Buderim was also on the list, with 27 units for sale at a median price of $585,000, yielding 4.85 per cent.

Finally, Mandurah produced four suburbs that fit the research scope, including Halls Head, where there are 64 houses on the market with a median price of $565,600, yielding 4.84 per cent.

The suburb also made the list for units, with eight up for grabs at the moment with a median price of $400,000 and a rental median of $500 per week, yielding 6.91 per cent.”

Mr Lardner said the research offers “a multifaceted perspective” on the current state of the property market in key non-capital locations.

“It’s a snapshot that reveals trends, opportunities, and challenges, providing practical guidance for both investors and homebuyers.”