Flip through the pages of property investment websites and you’ll see stories of regular people who have built significant investment portfolios. Some mention million-dollar figures regularly as they talk about how property investing has made them financially independent. New property investors envy the gurus as they question if they will ever get there. Yes, it is possible to become a property millionaire, all you need to know is where to buy property. Currently, some cities in Australia are outperforming others and continue to impress with their thriving property markets. Without further ado, here are the Australian cities with investment potential.


Property investors love Brisbane because of its home prices which are relatively lower than those of other capital cities. However, the low costs may soon be a thing of the past. The city has become a property investment hotspot and real estate experts say that home prices will go up by 6.3% in 2015. The middle to upper price range is experiencing a lot of activity so there’s a perception that it is a good time to buy. The rental market is also healthy as vacancy rates in urban areas sit at 2.4%. Whether you want to boost your investment portfolio or buy your first investment property, Brisbane is well worth considering.


Melbourne’s fragmented real estate market makes for some erratic movements. However, even new property investors can navigate this figurative minefield. Melbourne is a great city for investors. Its housing market continues to grow and its low interest rates create a positive market feeling. Those looking to buy property should focus on the established inner and middle suburbs which are experiencing the highest growth. While new land is being released in the outer suburbs, house prices keep rising within the middle and inner suburbs as that’s where people want to live.


For the last few years, Sydney’s property market has been booming – the trend continues this year. In 2014, the median house price rose by 14.1%, a little lower than 2013’s 15.1%. This type of growth hasn’t been seen since 2002-2003 when the market was at its peak. Many property experts say that Sydney’s property boom is due to the low interest rates and New South Wales (NSW) strong economy. According to CommSec’s State of the States report this quarter, NSW is the best-performing economy. As new investors hear about Sydney performing, they jump on the bandwagon pushing house prices even higher.

Brisbane, Sydney, and Melbourne are three Australian cities with investment potential. You can buy an off-plan property in one of the cities or in the coastal areas where demand is high for new properties. Buy-to-let properties also offer high yields in regions where there is a big demand for rental accommodation. Most of the rental properties are situated in lovely, well serviced areas that are close to commuter links and schools. In some areas, demand for rental accommodation is surpassing supply. Investors in these areas are enjoying higher rental rates and stronger yields.

It is always recommended that you consider talking to property managers from the local area, talk to local council about projects underway and undertake your own research by looking at a number of properties or attending auctions.