Affordable suburbs deliver significant gains for property investors

In a year marked by modest national property growth, a selection of affordable suburbs has defied expectations, offering investors substantial returns and impressive rental yields. According to the latest Pulse report by Washington Brown and Hotspotting, these areas have demonstrated that the traditional trade-off between yield and growth is not a hard and fast rule.

Tyron Hyde, Director of Washington Brown, emphasised the significance of these findings. “We’ve long been told you can’t have your cake and eat it too in property – growth or yield, not both. But that’s simply not true,” he stated. “The locations identified in The Pulse consistently deliver on both fronts, giving savvy investors a genuine opportunity to build wealth.”

The report highlights that the average growth across the top 50 selected locations from the past year was an impressive 18%, starkly contrasting with the national average of just two to three per cent. “That equates to an average investor gain of $93,000, compared to less than $25,000 nationally,” Mr Hyde noted. “These aren’t random lottery wins – they’re the result of data-led investing. And with the right advice, everyday investors can still access markets where price and yield work hand-in-hand.”

Among the standout performers was Aitkenvale in Townsville, where house prices soared by 40%, translating to a capital gain of $170,000 on a median-priced property over the past year. Midland in Western Australia followed closely, boasting a 35% price surge and gains of $167,000, while Park Avenue in Rockhampton climbed 33%, netting $140,000. “These aren’t million-dollar suburbs, either,” Mr Hyde added. “In places like Carey Park in WA, where the median house price was just $370,000, investors gained $130,000 in a year while accessing potential annual tax depreciation benefits of more than $5,000. That’s the power of smart property investing.”

The Pulse report’s top investment house suburb results from May 2024 to May 2025 include:

1. Aitkenvale, Townsville, QLD: Gain $170,000 (40%)
2. Midland, Swan, WA: Gain $167,000 (35%)
3. Park Avenue, Rockhampton, QLD: Gain $140,000 (33%)
4. Kin Kora, Gladstone, QLD: Gain $150,000 (30%)
5. Carey Park, Bunbury, WA: Gain $130,000 (30%)

Terry Ryder, Director of Hotspotting, highlighted the strong rental yields in these regions, with many suburbs delivering gross yields above 6% while rents surged alongside price growth. “We’re seeing sustainable double-plays – value appreciation plus rental performance,” Mr Ryder explained. “What stands out in our house market analysis is the sheer consistency of growth in regional and affordable areas because these are not one-off boom towns. They’re markets with real economic drivers, infrastructure investment, and increasing buyer demand.”

Mr Ryder also pointed out that many of the top-performing house markets were not on the radar of mainstream property coverage, yet they’ve outpaced capital city averages significantly. “In places like Kin Kora, Withers, and Berserker, we’re seeing gains of 25% to 30% in one year, at a time when national growth is hovering around three per cent. It sends a strong signal that investors should be looking beyond the usual suspects,” he said.

Depreciation benefits have added another layer of value for investors, especially those purchasing newer or well-maintained properties, according to Mr Hyde. “While the scale of these benefits varies based on property type and location, the potential for annual tax savings remains a contributing factor to overall returns,” he said. “Depreciation isn’t a silver bullet, but it makes a meaningful difference – especially in lower-priced markets where yields are already strong. In locations like Aitkenvale or Carey Park, for example, the additional tax offsets can help improve cash flow and make an already solid investment even more attractive.”

This report underscores the potential for strategic property investment in affordable suburbs, where both growth and yield can be achieved, challenging long-held beliefs in the real estate market.