The beginning of 2025 is an excellent time to invest because prices have softened but experts say this temporary dip will end once interest rates start to drop.
If you have the means to buy a home or apartment as an investment, these are the areas property experts say are worth checking out:
- New South Wales
Sydney prices have settled somewhat, but there are still good investing opportunities to explore in 2025.
- At the upper end of the market, Mosman and Freshwater get the thumbs up from experts because of their proximity to Sydney and lifestyle appeal.
- Meanwhile, Dulwich Hill is being described as a hidden gem in the inner west because of its wider streets and larger houses than neighbouring suburbs.
- Other experts are telling investors to look to Parramatta or suburbs near the new Western Sydney International Airport.
Regionally speaking, Warrawong in the Illawarra is being tipped to have its moment in the sun in 2025. This location is close to Port Kembla beach and Wollongong.
Investors are also being directed to Orange in the state’s west.
- Queensland
Queensland is alive with activity thanks to the upcoming Olympics. Here are some top spots in Queensland to consider:
- Coorparoo: Great schools, and quick access to Brisbane’s Central business district (CBD).
- Toowoomba: Affordable regional hub with steady growth.
- Townsville: Median house prices of $400,000–$500,000, with experts predicting significant growth.
- Ipswich: Rental yields up to 5%, plus schools and excellent transport.
- Northern Territory
The Northern Territory still has good investment potential. Many property analysts agree that some spots here offer great affordability, strong rental yields and growth opportunities, majorly driven by major investments in energy, mining, and defence. Some of these suburbs and towns are:
- Parap: with its tropical charm.
- Rapid Creek is close to central Darwin and tipped as a new hotspot
- Waterfront suburb Fannie Bay
- Braitling (Alice Springs): Experts say affordable housing with high rental demand for tourism and government workers makes this a good investment choice.
- Western Australia
Perth grew by over 19 per cent in 2024, catching up with the rest of the country. The average home in Perth now costs an average of $813,016 (as of early 2025)
- Innaloo: The suburb with a funny name, Innaloo has shopping hubs and family-friendly amenities, making it a solid investment choice.
- Victoria Park: Minutes from Perth’s CBD, Victoria Park has gentrified and has strong rental demand.
- Redcliffe: Suburbs around Perth Airport are growing fast with transport upgrades and redevelopment projects.
- Geraldton: While other buyers are inflating prices in Rockingham and Mandurah, this northern town has affordable housing and solid local infrastructure.
- South Australia
Adelaide’s investment potential continues, with savvy buyers understanding what a liveable city it is and seeing potential in ‘out of town’ locations that are still well within an hour’s drive of the CBD. Connect with a locally based real estate agent to explore:
- Hillcrest: An affordable suburb near Adelaide’s CBD that is well-placed for steady growth.
- Seacliff: A seaside suburb with train access to the city centre
- Christies Beach: Only 30 minutes from town and considered by many to be undervalued.
- Port Lincoln: Affordable housing and a thriving property market that is driven by its fishing industry and holiday appeal.
- Victoria
Victoria offers a blend of metro sophistication, regional opportunity and affordability, which makes it a strong contender for investors in 2025. Analysts are predicting a comeback for Victoria once interest rates drop so it’s a good time to get into the market.
Consider researching the following:
- Werribee: This spot is a go-to for first-home buyers and long-term investors.
- Frankston: Combines coastal charm with excellent amenities. Frankston’s reputation and appeal are evolving.
- Keilor East: Near Melbourne’s CBD, with a new train station coming, Keilor East is ‘the new Essendon’.
- Deer Park: Quality middle-ring suburb with 4.5% rental yields and strong transport links.
- Tasmania
Tasmania saw a surge during the pandemic but still has good investment potential:
- Kingston: A Hobart suburb with a coastal vibe, modern amenities and appeal for families and lifestyle buyers.
- Devonport: The entry point for many travellers thanks to the ferry port. This is a regional hotspot with infrastructure projects that are driving growth.
- Launceston: Known for its historic charm and vibrant city centre, Launceston has a strong rental market
- New Norfolk: This historic town is said to deliver excellent yields, especially for units.
- Australian Capital Territory – Canberra
Canberra’s property market is gaining momentum in 2025, offering diverse investment opportunities. Here are the key areas to focus on:
- Kambah/Wright/Amaroo: These suburbs combine affordability, family-friendly amenities, and solid investment potential, making them ideal for first-time and seasoned investors.
- Macarthur (Tuggeranong Region): A standout performer, with house prices up 8.5% in 2024. Limited supply, affordability, and resilience to rate changes make this suburb a top pick for 2025.
Where should you invest in 2025?
Due diligence is required when you’re an investor and you need to look at rental demand, yield and capital gain potential.
While the suburbs named above are on experts’ lists, there are always opportunities within the area where you live. Even some parts of the same suburb do better than others, so if you’re thinking of investing, speak to your local Professionals agent for advice about where to buy and how to maintain your investment property so it delivers better long term value.