Top 20 investment-grade suburbs in Australia where investors have a negotiating edge

According to Well Money Report Jan 2022

Are you looking for the perfect place to buy an investment property? The latest Well Money property report has you covered. Identifying three key telltale signs that make a suburb ‘good for investment’, this report covers the top 20 suburbs across Australia.

Below, you’ll find 20 suburbs ranked by a system designed to find quality locations that give investors a negotiating ‘edge’ for best possible value. 

Three things to look for if you’re investing in property

The report looked at these three things to find the suburbs with the best potential for investing in:

1. Is the suburb ‘investment grade’?
   There are two things that make a suburb ‘investment-grade’. The first is low inventory levels (properties sold in the last four quarters divided by current stock on market) which drives prices up. The second is low vacancy rates (the percentage of all long-term rental properties currently vacant to rent), which increases rental prices. This means that if you buy a property here, you are more likely to make money on it.
2. Is demand lower than supply?

   When the demand for properties is not as high as the number of properties available, it gives buyers more power. They have less competition and the owners are more likely to sell.

3. Have property prices: higher price increases mean more capital gains for owners.

   Sellers are more likely to be open to price negotiations from buyers given they have a higher margin to work with. This report set the bar at 45% or more growth over the last 10 years.

After going through these three questions, we are left with a small pool of worthy suburbs where conditions are in favour of buyers and importantly, where investors have the most bargaining power. 

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

Interestingly, the top twenty suburbs are mostly in Queensland (8), New South Wales (5) and Victoria (4) – with just three from Tasmania and Western Australia combined. 

Let’s get into the top 20 suburbs where buyers have a negotiating edge: 

1. Alstonville, NSW 2477 – Houses

Changes in the last 3 months:

• Median asking price – December 2022 was $901,600
• Net price gain over past 10 years 165%
• Years of profit lost if vendor sells for 10% discount is 1.1 years
• Suburb inventory level is 2.2 months
• Vacancy rate is at 0.0%*

Find out why Alstonville is great for retirees and families looking for a quiet and safe country town lifestyle in our suburb reviews.

Browse Alstonville property listings on Homely. 

2. Marong, VIC 3515 – Houses

Changes in the last 3 months:

• Median asking price – December 2022 is $574,240
• Net price gain over past 10 years is 127%
• Years of profit lost if vendor sells for 10% discount of 1.3 years
• Suburb inventory level is 3.8 months
• Vacancy rate is 0.0%*

Are you a Marong local? Leave a suburb review on Homely to help property seekers find out more about the area.

Browse Marong Listings and check out what people say about the area.

https://www.homely.com.au/homes/8-falls-street-marong-vic-3515/9644368

3. Valla Beach, (NSW) 2448 – Houses

Changes in the last 3 months:

• Median asking price – December 2022 is $560,000
• Net price gain over past 10 years is 147%
• Years of profit lost if vendor sells for 10% discount is 1.3 years
• Suburb inventory level is 2.3 months
• Vacancy rate is 0.0%*

Find out why Valla Beach is a beautiful beach suburb and a great suburb for families in our suburb reviews.

Valla Beach Listings and check out what people say about the area.

4. Caloundra West, QLD 4551 – Houses

Changes in the last 3 months:

• Median asking price – December 2022 is $749,000
• Net price gain over past 10 years is 125%
• Years of profit lost if vendor sells for 10% discount is 1.4 years
• Suburb inventory level is 1.7 months
• Vacancy rate is 0.5%

Find out why Caloundra West is a perfect place for young families in Homely suburb reviews. 

Browse Caloundra West Listings and check out what people say about the area.

5. Burleigh Waters, QLD 4220 – Houses

Changes in the last 3 months:

• Median asking price – December 2022 is $1,495,000
• Net price gain over past 10 years is 193%
• Years of profit lost if vendor sells for 10% discount 1.4 years
• Suburb inventory level is 2.8 months
• Vacancy rate is 0.4%

Find out why Burleigh Waters is described as a “The Best Suburb on the Gold Coast” and more in our suburb reviews. 

Browse Burleigh Waters Listings and check out what people say about the area.

6. Highett, VIC 3190 Houses

Changes in the last 3 months:

• Median asking price – December 2022 is $630,000
• Net price gain over past 10 years is 80%
• Years of profit lost if vendor sells for 10% discount is 1.4 years
• Suburb inventory level is 5.3 months
• Vacancy rate is 1.5%

One Highett local described the area as having an “incredible atmosphere”. Find out why in our suburb reviews.

Browse Highett Listings and check out what people say about the area.

7. Kellyville Ridge, NSW 2155 – Houses

Changes in the last 3 months:

• Median asking price – December 2022 is $508,250
• Net price gain over past 10 years is 89%
• Years of profit lost if vendor sells for 10% discount is 1.4 years
• Suburb inventory level is 1.3 months
• Vacancy rate is 0.7%

Find out why Kellyville Ridge is “Peaceful, safe and family friendly” in our suburb reviews. 

Browse Kellyville Ridge listings and check out what people say about the area.

8. Kariong, NSW 2250 – Houses

Changes in the last 3 months:

• Median asking price – December 2022 is $952,750
• Net price gain over past 10 years is 160%
• Years of profit lost if vendor sells for 10% discount is 1.4 years
• Suburb inventory level 1.5 months
• Vacancy rate 0.3%

Find out why our Homely users love living in the family centred commuter town of Kariong in our suburb reviews.

Browse Kariong listings and check out what people say about the area.

9. Figtree, NSW 2525 – Houses

Changes in the last 3 months:

• Median asking price – December 2022 is $1,070,000
• Net price gain over past 10 years is 148%
• Years of profit lost if vendor sells for 10% discount is 1.4 years
• Suburb inventory level is 1.1 months
• Vacancy rate is 1.0%

Take a look at why Figtree is a  “Great value for space, privacy, convenience and family living” in our suburb reviews.

Browse Figtree listings and check out what people say about the area.

10. Somerville, VIC 3912 – Houses

Changes in the last 3 months:

• Median asking price – December 2022 is $800,000
• Net price gain over past 10 years is 108%
• Years of profit lost if vendor sells for 10% discount is 1.5 years
• Suburb inventory level is 2.2 months
• Vacancy rate is 0.9%

Somerville is rated highly for its expansive estates, great shopping centre and friendly neighbours. Find out why in the Homely suburb reviews. 

Browse Somerville listings and check out what people say about the area.

11. Pomona, QLD 4568 – Units

Changes in the last 3 months:

• Median asking price – December 2022 is $950,000
• Net price gain over past 10 years is 145%
• Years of profit lost if vendor sells for 10% discount is 1.5 years
• Suburb inventory level 5.2 months
• Vacancy rate is 1.4%

Locals in Pomona love their town for the peace and quiet, parks and recreation and the short drive into Noosa. Find out more in our suburb reviews.

Browse Pomona listings here.

12. Donvale, VIC 3111 – Houses

Changes in the last 3 months:

• Median asking price – December 2022 $825,000
• Net price gain over past 10 years is 108%
• Years of profit lost if vendor sells for 10% discount 1.5 years
• Suburb inventory level is 3.4 months
• Vacancy rate is 0.9%

Locals love Donvale for the “best of both worlds” being close to nature whilst offering everything that comes with close to city living – find out more in suburb reviews. 

Browse Donvale listings and check out what people say about the area.

13. Mountain Creek, QLD 4557 – Units

Changes in the last 3 months:

• Median asking price – December 2022 is $949,000 
• Net price gain over past 10 years is 136%
• Years of profit lost if vendor sells for 10% discount is 1.5 years
• Suburb inventory level is 2.9 months
• Vacancy rate is 0.6%

Take a look at why Mountain Creek rated highly for its lakes and parklands and how quiet and peaceful it is in our suburb reviews. 

Browse Mountain Creek listings and check out what people say about the area.

14. Bald Hills, QLD 4036 – Houses

Changes in the last 3 months:

• Median asking price – December 2022 is $748,800
• Net price gain over past 10 years is 99%
• Years of profit lost if vendor sells for 10% discount is 1.6 years
• Suburb inventory level is 2.3 months
• Vacancy rate is 0.9%

Bald Hills  is known on Homely for having great schools, parks and recreation and a strong neighbourly spirit, check out what else people have to say about Munno Para in our suburb reviews. 

Browse Bald Hills listings and check out what people say about the area.

15. Vasse, WA 6280 – Houses

Changes in the last 3 months:

• Median asking price – December 2022 is $487,990
• Net price gain over past 10 years is 81%
• Years of profit lost if vendor sells for 10% discount is 1.6 years
• Suburb inventory level is 5.3 months
• Vacancy rate is 0.0%*

Vasse locals describe the area as clean and green, and perfect for professionals, families and retirees alike. Find out more about Vasse in Homely suburb reviews. 

Browse Vasse listings and check out what people say about the area.

16. Mermaid Waters, QLD 4218 – Houses

Changes in the last 3 months:

• Median asking price – December 2022 is $1,699,000
• Net price gain over past 10 years is 193%
• Years of profit lost if vendor sells for 10% discount is 1.6 years
• Suburb inventory level is 1.5 months
• Vacancy rate is 0.9%

Read up on why Mermaid Waters is rated highly for being an ‘untapped beautiful seaside town’ in our suburb reviews. 

Browse Mermaid Waters Listings and check out what people say about the area.

17. Geilston Bay, TAS 7015 – Houses

Changes in the last 3 months:

• Median asking price – December 2022 is $695,000
• Net price gain over past 10 years is 124%
• Years of profit lost if vendor sells for 10% discount is 1.6 years
• Suburb inventory level is 4.2 months
• Vacancy rate is 1.0%

Take a look at why Geilston Bay is great for childcare, professionals, families and more in our suburb reviews. 

Browse Geilston Bay listings and check out what people say about the area.

18. Eaglehawk Neck, Tas 7179 – Houses

Changes in the last 3 months:

• Median asking price – December 2022 is $698,000
• Net price gain over past 10 years is 170%
• Years of profit lost if vendor sells for 10% discount is 1.6 years
• Suburb inventory level is 4.8 months
• Vacancy rate is 0.0%*

Find out why Eaglehawk Neck is great for its cost of living, neighbourly spirit and more in our suburb reviews. 

Browse Eaglehawk Neck listings and check out what people say about the area.

19. Glass House Mountains, QLD 4518 – Houses

Changes in the last 3 months:

• Median asking price – December 2022 is $765,000
• Net price gain over past 10 years is 110%
• Years of profit lost if vendor sells for 10% discount is 1.6 years
• Suburb inventory level is 3.7 months
• Vacancy rate is 1.5%

Glass House Mountains is described by Homely locals as an “a great place to raise a family.” Read more about Glass House Mountains in suburb reviews. 

Browse Glass House Mountains listings and check out what people say about the area.

20. Yarrabilba, QLD 4207

Changes in the last 3 months:

• Median asking price – December 2022 is $540,800
• Net price gain over past 10 years is 72%
• Years of profit lost if vendor sells for 10% discount is 1.7 years
• Suburb inventory level is 2.7 months
• Vacancy rate is 1.0%

Homely locals think Yarrabilba is a lovely community and a great place to live for its neighbourly spirit, affordability and public transport.  Find out more about Yarrabilba in our suburb reviews. 

Browse Yarrabilba listings and check out what people have to say about the area.

*All market forecasting data in the quoted report was provided by industry and media-trusted property research consultancy, Suburbtrends

Co-written by James Lowther and Marika Berney