NSW dominated the list, with four suburbs in the top 10. Top of the table was Jerrabomberra in south-eastern NSW, which is predicted to get the strongest capital growth in the next five years of over 10% per annum. The other NSW suburbs were Karabar (fourth), Banora Point (ninth) and Medowie (tenth).
Running in second was Morayfield, which is 44km north of Brisbane. Also predicted to grow by more than 10% over the same period were the WA suburb Seville Grove and Ngunnawal in the ACT.
“Buying in a regional area might not be for everyone but with strong predicted growth and high rental yields, it’s certainly an option to consider,” says John Edwards, consulting analyst for Onthehouse.com.au.
“With more expensive areas, such as Sydney, outer city regions can be much more affordable – pair that with strong growth and it could be a good fit for investors wanting to get good rental returns and capital growth over time.”
The top 10 suburbs were calculated based on rental yields, five year capital growth predictions, industry surroundings, confidence ratings and employment opportunities.
“Investors should be looking for locations that have good employment opportunities, education options, are well connected to transport and have planned developments in the area that will attract the population,” says Edwards.
“The latest Best Rent Report highlights 58 areas around Australia that meet this criteria, each offering returns of better than 10% per annum.”
| Ranking | Suburb | State | Median Value | Median Rent |
Median Rental Yield |
Predicted Capital
Growth,
5 Years, %pa Avg. |
| 1 | Jerrabomberra | NSW | $612,500 | $605 | 5.15% | 10+% |
| 2 | Morayfield | QLD | $321,000 | $335 | 5.47% | 10+% |
| 3 | Seville Grove | WA | $367,500 | $390 | 5.52% | 10+% |
| 4 | Karabar | NSW | $461,500 | $470 | 5.30% | 10+% |
| 5 | Dalyellup | WA | $414,500 | $410 | 5.15% | 10+% |
| 6 | Ngunnawal | ACT | $392,500 | $405 | 5.37% | 10+% |
| 7 | Secret Harbour | WA | $482,000 | $485 | 5.28% | 10+% |
| 8 | Murrumba Downs | QLD | $419,000 | $435 | 5.39% | 9+% |
| 9 | Banora Point | NSW | $438,500 | $455 | 5.44% | 9+% |
| 10 | Medowie | NSW | $396,000 | $385 | 5.10% | 9+% |
