The Best Suburbs to Invest in Australia for 2021

Published 05 April 2021 by Team :Different

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If you've got your eyes set on the Australian property market you'll be spoilt for choice on investment opportunities in 2021.

Despite gloomy forecasts due to the pandemic, the property market in Australia has held incredibly strong. That being said, the property market is seeing a shift in terms of suburb growth.

While urban units close to the CBD in major cities have dominated in the past, experts are predicting that the next decade will be heavily affected by a regional shift in the property market in Australia.

That's why you'll see that the best suburbs to invest in Australia for 2021 are in the regional areas of major cities. What's more, is that units have fallen out of favour for buyers and renters who would now rather live in spacious houses, mostly due to the work-from-home trend.

So, what are the best suburbs to invest in Australia right now?

We've researched what the data and the property experts are saying, and have derived a list of the top suburbs to invest in Australia across all major cities.

As always, these suburbs are in no particular order and is not a definitive list. There are always lots of other great options out there for you to invest in. You should do your own research and speak to a financial advisor about the right move for you before investing in property.

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growth suburbs sydney

Sydney

Property experts are predicting a 7-11% growth rate in Sydney for 2021. But, while there's plenty of Sydney growth suburbs, the Sydney property market is still home to some of the most expensive properties on this list.

Some of the best suburbs to invest in Sydney 2021 are:

  • Narrabeen
  • Collaroy
  • Bardwell Park
  • Fairlight
  • Cronulla
  • Petersham
  • Bexley

We'll give you a snapshot of each Sydney growth suburb, but if you want a more in-depth view of the Sydney property market, read our article on the best suburbs to invest in Sydney 2021.

1. Narrabeen and Collaroy

While the capital requirement to invest here is extremely high, they’ve got signs of growth left, right and centre and present a great investment opportunity in the Sydney property market.

  • Median house price Narrabeen: $2,300,000 for houses, $952,500 for units
  • Median house price Collaroy: $2,580,000 for houses, $915,000 for units
  • Average rental yield Narrabeen: 2.0% for houses and 3.3% for units
  • Average rental yield Collaroy: 2.4% for houses and 3.4% for units
  • 5-year compound growth rate for Narrabeen: 5.0% for houses and 3.9% for units
  • 5-year compound growth rate for Collaroy: 6.3% for houses and 4.4% for units

2. Bardwell Park

Bardwell Park sits in a high demand market and you'll likely see very healthy growth on your property if you were to invest in a house here.

  • Median house price Bardwell Park: $1,400,000 for houses
  • Average rental yield Bardwell Park: 2.4% for houses 
  • 5-year compound growth rate for Bardwell Park: 1.5% for houses

3. Fairlight

Fairlight is one of the few suburbs where a unit still looks like a good buy, so it still shows promise as a top growth suburb in Sydney.

  • Median house price Fairlight: $2,525,000 for houses, $1,463,000 for units
  • Average rental yield Fairlight: 2.3% for houses and 2.5% for units
  • 5-year compound growth rate for Fairlight: 6.2% for houses and 7.3% for units

4. Cronulla

Cronulla is a great suburb for residents who want a seaside neighbourhood, so a property here lets you access a key tenant demographic for a consistent income and strong capital growth for houses.

  • Median house price Cronulla: $2,350,000 for houses, $810,000 for units
  • Average rental yield Cronulla: 1.9% for houses and 3.2% for units
  • 5-year compound growth rate for Cronulla: 5.5% for houses and 2.9% for units

5. Petersham

Petersham is a great investment opportunity if you're trying to avoid putting all your eggs in the regional Sydney property market 'basket'.

  • Median house price Petersham: $1,675,000 for houses, $750,000 for units
  • Average rental yield Petersham: 2.3% for houses and 3.1% for units
  • 5-year compound growth rate for Petersham: 4.9% for houses and 2.3% for units

6. Bexley

If you're looking for a more affordable investment property that still boasts high growth rates, Bexley is a good option.

  • Median house price Bexley: $1,240,000 for houses, $660,000 for units
  • Average rental yield Bexley: 2.5% for houses and 3.4% for units
  • 5-year compound growth rate for Bexley: 2.4% for houses and -0.1% for units

Read our in-depth breakdown of growth suburbs in Sydney

Understand not just which suburbs are growing, but why they are growing. Get our top pick recommendations based on which type of investor you are.

Read More
growth suburbs melbourne

Melbourne

2021 is expected to bring an 8-12% growth rate for properties in Melbourne according to experts.

Melbourne's property market follows the same story as Sydney growth suburbs. The suburbs that are seeing growth in Melbourne are typically located away from the CBD and are populated with spacious houses in relaxed residential areas.

Some of the best suburbs to invest in Melbourne 2021 are:

  • McCrae
  • Sunbury
  • Melton
  • Mount Martha
  • Seaford
  • Brunswick East
  • Craigieburn

We'll give you a snapshot of each Melbourne growth suburb, but if you want a more in-depth view of the Melbourne property market, read our article on the best suburbs to invest in Melbourne 2021.

1. McCrae

McCrae boasts a modest rental yield but the growth rate for houses is really why this Melbourne growth suburb has such appeal. It's a strong choice as long as you believe in the regional trend.

  • Median house price McCrae: $1,000,000 for houses, $582,500 for units
  • Average rental yield McCrae: 2.3% for houses and 4.0% for units
  • 5-year compound growth rate for McCrae: 10.8% for houses and 3.5% for units

2. Sunbury

The only real issue is that this suburb has become a bit over-hyped in the Melbourne property market. You'll likely struggle to get your hands on a property here, and might be faced with tough bids.

  • Median house price Sunbury: $575,000 for houses, $432,500 for units
  • Average rental yield Sunbury: 3.4% for houses and 4.3% for units
  • 5 year compound growth rate for Sunbury: 8.9% for houses and 5.9% for units

3. Melton

Prices are quite low here, so it's a great option if you're on limited capital.

  • Median house price Melton: $391,250 for houses, $326,000 for units
  • Average rental yield Melton: 4.3% for houses and 4.8% for units
  • 5-year compound growth rate for Melton: 8.9% for houses and 7.1% for units

4. Mount Martha

This Melbourne growth suburb boasts very high growth rates, but rental yields are low in this growth suburb. It's a good option if you've been looking to diversify your portfolio with more high-value investments.

  • Median house price Mount Martha: $1,125,000 for houses, $656,250 for units
  • Average rental yield Mount Martha: 2.7% for houses and 3.8% for units
  • 5-year compound growth rate for Mount Martha: 8.4% for houses and 5.2% for units

5. Seaford

It's another low-risk, safe all-rounder suburb tipped for growth in the Melbourne property market. Maybe something to look towards if you're struggling to get your hands on a property in Sunbury.

  • Median house price Seaford: $700,000 for houses, $527,112 for units
  • Average rental yield Seaford: 3.1% for houses and 3.6% for units
  • 5-year compound growth rate for Seaford: 8.2% for houses and 5.7% for units

6. Brunswick East

The median price of houses have climbed by 23.3% on a year-on-year basis as well, which is impressive considering how pricy they already are. If you can afford it, houses are a great option in Brunswick East, but we would stay away from units.

  • Median house price Brunswick East: $1,286,500 for houses, $508,200 for units
  • Average rental yield Brunswick East: 2.5% for houses and 4.2% for units
  • 5-year compound growth rate for Brunswick Eas: 7.9% for houses and -0.8% for units

7. Craigieburn

Growth rates are modest but the rental yield is strong at 3.7% for houses and 4.8% for units and a 1.51% vacancy rate overall. Since properties here are cheap it's likely an easy and safe option for a positively geared property.

  • Median house price Craigieburn: $564,000 for houses, $374,000 for units
  • Average rental yield Craigieburn: 3.7% for houses and 4.9% for units
  • 5-year compound growth rate for Craigieburn: 7.8% for houses and 2% for units

Get our in-depth breakdown of growth suburbs in Melbourne

Understand not just which suburbs are growing, but why they are growing. Get our top pick recommendations based on which type of investor you are.

Read More
growth suburbs brisbane

Brisbane

Brisbane has overtaken Sydney and Melbourne to become the city of inter-state migration. Some of the reasons why it became popular within the Australian property market is its lifestyle, sun-kissed outdoors and affordable properties.

Some of the best suburbs to invest in Brisbane for 2021 are:

  • Bardon
  • Graceville
  • Ashgrove
  • Carina Heights
  • Strathpine
  • Oxley
  • Kedron

We'll give you a snapshot of each Brisbane growth suburb, but if you want a more in-depth view of the Brisbane property market, read our article on the best suburbs to invest in Brisbane 2021.

1. Bardon

The high growth rates are worth your attention, and you might score a great deal since the suburb isn't too overhyped for investors.

  • Median house price Bardon: $1,170,000 for houses, $788,000 for units
  • Average rental yield Bardon: 2.8% for houses and 2.6% for units
  • 5-year compound growth rate for Bardon: 7.4% for houses and 5.8% for units

2. Graceville

This Brisbane growth suburb is likely to be a winner among families with children and students, eager to make use of spacious homes with its own backyard and a serene atmosphere to indulge in.

There's no wonder it has a 0.9% vacancy rate and a 23% 3-year forecasted growth rate. It's a great choice for high growth in the long term.

  • Median house price Graceville: $1,034,000  for houses, $450,000 for units
  • Average rental yield Graceville: 3.0% for houses and 4.5% for units
  • 5-year compound growth rate for Graceville: 7.3% for houses and 2.1% for units

3. Ashgrove

Great overall option if you can afford it with high growth rates for houses, healthy rental yields and a stable tenant market.

  • Median house price Ashgrove: $1,150,000 for houses, $430,000 for units
  • Average rental yield Ashgrove: 2.7% for houses and 4.8% for units
  • 5-year compound growth rate for Ashgrove: 7.0% for houses and -1.4% for units

4. Carina Heights

Getting your hands on a rental here might be tricky since Carina Heights holds such a promising future, but it truly is one of the clear winners of the 2021 property market in Brisbane.

  • Median house price Carina Heights: $747,500 for houses, $465,000 for units
  • Average rental yield Carina Heights: 3.3% for houses and 5.0% for units
  • 5-year compound growth rate for Carina Heights: 4.8% for houses and -0.6% for units

5. Strathpine

The house prices are on the lowest end of the spectrum so if you’re looking for low capital investments, this suburb is likely to interest you.

  • Median house price Strathpine: $455,000 for houses, $272,000 for units
  • Average rental yield Strathpine: 4.4% for houses and 6.1% for units
  • 5 year compound growth rate for Strathpine: 4.8% for houses and 0.3% for units

6. Oxley

Growth rates are modest but house prices are about half of most other suburbs on this list.

It's worth your attention if you're struggling to get your hands on a property in hyped-up suburbs like Strathpine.

  • Median house price Strathpine: $455,000 for houses, $272,000 for units
  • Average rental yield Strathpine: 4.4% for houses and 6.1% for units
  • 5 year compound growth rate for Strathpine: 4.8% for houses and 0.3% for units

7. Kedron

A good, low-risk choice overall. You can expect modest returns from an investment property in Kedron, but the rental yields and vacancy rates are quite healthy in this suburb.

  • Median house price Kedron: $797,500 for houses, $386,000 for units
  • Average rental yield Kedron: 3.3% for houses and 5.0% for units
  • 5 year compound growth rate for Kedron: 5.6% for houses and -3.2% for units

Get our in-depth breakdown of growth suburbs in Brisbane

Understand not just which suburbs are growing, but why they are growing. Get our top pick recommendations based on which type of investor you are.

Read More
growth suburbs adelaide

Adelaide

Adelaide is the fairy tale of the year! The property market in Adelaide was very kind on both houses and units despite the pandemic and overarching trends.

House prices grew by 6% while unit prices grew by 13.5% over the course of 2020. That being said, property experts expect that houses will carry more growth going forward.

As far as 2021 is concerned, property price growth is expected to be between 5% and 8%.

Some of the best suburbs to invest in Adelaide for 2021 are:

  • Tennyson
  • Walkerville
  • Glenunga
  • Semaphore
  • Prospect
  • Blackwood
  • Largs Bay
  • Port Elliot

We'll give you a snapshot of each Adelaide growth suburb, but if you want a more in-depth view of the Adelaide property market, read our article on the best suburbs to invest in Adelaide 2021.

1. Tennyson

To put the growth of this Adelaide suburb into context: If you bought a $1.4 million house last year, it would now be worth $1.6 million!

This Adelaide growth suburb will only continue to perform on the Adelaide property market, and the only question remaining is if you can actually get your hands on a property in Tennyson.

  • Median house price Tennyson: $1,575,000 for houses
  • Average rental yield Tennyson: 2.3% for houses and 5.6% for units
  • 5-year compound growth rate for Tennyson: 12.3% for houses and -1.8% for units

2. Walkerville

It's not as hot as its more popular counterpart, Tennyson, but it's still worthy of being on your radar if this is your kind of property market, and you can't get your hands on anything in a place like Tennyson.

  • Median house price Walkerville: $1,410,000 for houses, $450,000 for units
  • Average rental yield Walkerville: 1.9% for houses and 4.4% for units
  • 5-year compound growth rate for Walkerville:  8.8% for houses and 3.6% for units

3. Glenunga

The demand for this suburb is more than twice that of Adelaide’s average with 3,268 views per property and a 1.0% vacancy rate, so it's a safe all-rounder, though a bit pricy.

  • Median house price Glenunga : $1,200,000 for houses, $405,000 for units
  • Average rental yield Glenunga: 2.3% for houses and 4.4% for units
  • 5 year compound growth rate for Glenunga:  7.1% for houses and -0.7% for units

4. Semaphore

It's one of the best suburbs to invest in Adelaide for 2021 if you're looking for a good all-rounder that is fairly affordable, but still boasts healthy growth rates and rental yields.

  • Median house price Semaphore: $730,000 for houses, $325,000 for units
  • Average rental yield Semaphore: 3.1% for houses and 5.0% for units
  • 5-year compound growth rate for Semaphore: 7.1% for houses and 1.9% for units

5. Prospect

It's not the hottest suburb on the Adelaide property market right now, but if you're trying to avoid putting all your eggs in the regional property market basket, it's a great option.

  • Median house price Prospect: $750,000 for houses, $380,000 for units
  • Average rental yield Prospect: 2.9% for houses and 4.8% for units
  • 5-year compound growth rate for Prospect:  5.7% for houses and 4.4% for units

6. Blackwood

It's a good and affordable option and you can expect modest returns on your investment. Good to keep your eye on this Adelaide growth suburb in case a great deal pops up.

  • Median house price Blackwood: $653,000 for houses, $365,000 for units
  • Average rental yield Blackwood: 3.4% for houses and 4.4% for units
  • 5-year compound growth rate for Blackwood: 5.5% for houses and 4.0% for units

7. Largs Bay

Largs Bay’s average rental yield is the highest among our list at 3.8% for houses and has the lowest house prices compared to the rest of the suburbs given here, so if you're looking topositively gear your propertyit's a great option.

  • Median house price Largs Bay: $619,000 for houses
  • Average rental yield Largs Bay: 3.8% for houses and 5.7% for units
  • 5 year compound growth rate for Largs Bay: 4.4% for houses and 0.2% for units

Read our in-depth breakdown of growth suburbs in Adelaide

Understand not just which suburbs are growing, but why they are growing. Get our top pick recommendations based on which type of investor you are.

Read More
growth suburbs perth

Perth

Perth is now the most affordable city to buy properties in for this year! The Perth property market is also expected to see a price growth between 6%-10% for 2021.

To add to that, Perth has a number of major infrastructural projects in its pipeline, such as the $6.5B infrastructure upgrade across WA. You should pay attention to these projects, as they can always shake up which suburbs grow and which ones stagnate.

That being said, some of the best suburbs to invest in Perth for 2021 are:

  • Tennyson
  • Walkerville
  • Glenunga
  • Semaphore
  • Prospect
  • Blackwood
  • Largs Bay
  • Port Elliot

We'll give you a snapshot of each Perth growth suburb, but if you want a more in-depth view of the Perth property market, read our article on the best suburbs to invest in Perth 2021.

1. South Perth

You won't see high growth rates in the first couple of years after buying, but experts are expecting a great comeback in the long-term, which could make it easier to get your hands on a property here right now.

  • Median house price South Perth: $1,250,000 for houses, $525,000 for units
  • Average rental yield South Perth: 2.3% for houses and 3.8% for units
  • 5 year compound growth rate for South Perth : 0.7% for houses and -1.1% for units

2. Yanchep

It's a superb option for investors who are struggling to deal with high house prices since you still get strong growth rates and a healthy rental yield. The only thing worth mentioning is that growth will slow down if demand for inner-city living goes back up.

  • Median house price Yanchep: $375,000 for houses
  • Average rental yield Yanchep: 4.5% for houses
  • Year-on-year growth rate for Yanchep: 6.99% for houses

3. Clarkson

Rentals here are in super high demand at the moment, and Clarkson is tipped for immense growth. Combined with the fact that houses are quite affordable, it's an especially strong investment for first-time homebuyers, particularly so if you're looking for a positively geared property.

  • Median house price Clarkson: $375,000 for houses, $250,000 for units
  • Average rental yield Clarkson: 5.0% for houses and 6.7% for units
  • 5 year compound growth rate for Clarkson: -2.4% for houses and -5.4% for units

4. Forrestfield

With house prices as low as $400,000, if you’re looking for budget real estate, then Forrestfield should be on your shortlist this year. We recommend you keep it in your peripheral vision if you're struggling to get your hands on properties elsewhere like Clarkson.

  • Median house price Forrestfield: $400,000 for houses, $322,000 for units
  • Average rental yield Forrestfield: 4.8 % for houses and 4.8% for units
  • Year-on-year growth rate for Forrestfield: 6.00%% for houses and -3.5% for units

5. Wandi

Vacancy rates here are as low as 0.5%, most likely because of its ease of access to the city if you need to swing by, as well as a number of shopping centres, fashion and restaurants in the Honeywood district.

It's a strong suburb if you're looking for good rental yields and modest growth.

  • Median house price Wandi: $510,000 for houses
  • Average rental yield Wandi: 4.1% for houses
  • Year-on-Year growth rate for Wandi: 3.93% for houses.

6. Como

Not much has really changed in Como. Its relaxed vibes and seaside cafés, iconic architecture combined with developed units are proving to still be favoured by buyers and renters.

If you're someone who puts an emphasis on strong rental yields, Como should catch your eye.

  • Median property price Como: $840,000 for houses, $460,000 for units
  • Average rental yield Como: 3.0% for houses and 4.7% for units
  • Year-on-year growth rate for Como: 4.1% for houses and -1.1% for units

7. Scarborough

You'll have a leg up when you're trying to find tenants if you get your hands on a rental property here. Apart from that, it's in general a strong all-rounder, definitely worth being on your shortlist.

  • Median house price Scarborough: $765,000 for houses, $450,000 for units
  • Average rental yield Scarborough: 3.7% for houses and 4.9% for units
  • Year-on-year growth rate for Scarborough: 3.57% for houses and 2.04% for units

Read our in-depth breakdown of the growing suburbs in Perth

Understand not just which suburbs are growing, but why they are growing. Get our top pick recommendations based on which type of investor you are.

Read More

Final thoughts on which suburbs to invest in Australia for 2021

You've probably noticed by now that a common theme in the Australian property market is the preference for big spacious houses as opposed to units and the shift towards regional suburbs.

At the heart of a good investing journey is knowing what tenants want in a rental. Always put yourself in the shoes of a potential tenant or future buyer and ask yourself "why would someone want to live in this property?"

Overall, 2021 is looking like a super promising year for property investors. You'll have plenty of options to choose from and as long as you do your research and spend time in the property market, you can expect solid returns on your investment.

We get that with too many options to choose from, it can be overwhelming to decide on which suburb to invest in Australia. We'd recommend you narrow down your preferences to about 5 growth suburbs in Australia based on factors such as rental yields, compound growth rates and the market price for houses.

Check out our article on things you need to know before you buy an investment property if you want to be prepared for your rental purchase. We also publish lots of insights and tips on our property blog.

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Disclaimer: The views, information, or opinions expressed in this blog post are for general information purposes only and should not be relied upon. We have not taken into account specific situations, facts or circumstances, and no part of this blog post constitutes personal financial, legal, or tax advice to you. You should seek tax advice from your accountant, specific to your situation.

The entire market was not considered in this list.