Hotspotting’s latest National Top 10 Best Buys report identifies the locations across Australia “best positioned for long-term capital growth”.
The May 2026 list includes:
- Greater Hobart (TAS)
- Belmont (WA)
- West Torrens (SA)
- Greater Bendigo (VIC)
- Sunshine Coast Rail Towns (QLD)
- Muswellbrook (NSW)
- Greater Dandenong (VIC)
- Parramatta (NSW)
- Ballarat (VIC)
- Wagga Wagga (NSW)
According to the property research firm, the Best Buys methodology focuses on markets with the fundamentals to perform over five to 10 years rather than short-term hype cycles.
These include depth of demand, improving sales activity, tight rental conditions, infrastructure investment, employment growth, population movement, and affordability.
Hotspotting founder Terry Ryder said this approach was deliberately designed to identify markets still in the early stages of a growth cycle.
“Our latest research is about identifying future growth markets before the best years of price growth have been fully priced in, with the latest results demonstrating the strength of that methodology,” Mr Ryder said.
The property research firm cited LGAs identified in March 2024, which it said delivered average capital growth of 27% over two years.
The stronger performers from those selections came from regional Western Australia and Queensland.
Greater Geraldton, Bunbury, and Kingaroy each delivered average two-year growth above 45%.
“The consistency of these results reinforces our focus on long-term fundamentals rather than short-term speculation,” Mr Ryder said.
Yield as a decision driver
One of the clearest themes in the report is the re-emergence of rental yield as a central investment metric.
Several of the identified markets, including Belmont in Perth and Parramatta in Sydney, offer yields in the 5% to 6% range, alongside relatively accessible entry prices.
At the same time, vacancy rates in many locations remain critically tight, often below 1%, particularly in Hobart and key regional centres.
Talking about Greater Bendigo, Mr Ryder said, “Many suburbs remain in the $500,000 to $650,000 range, while yields are solid and vacancy rates remain tight.”
Infrastructure as a key investment signal
Infrastructure is one consistent thread across all 10 locations identified in the report, with major public and private investment reshaping demand fundamentals.
Parramatta is evolving into Sydney’s second CBD, backed by metro rail, light rail, health precinct expansions, and large-scale urban renewal.
West Torrens in Adelaide is benefiting from airport upgrades, a new $3.2 billion hospital, and multi-billion-dollar transport projects.
Sunshine Coast rail towns, meanwhile, are positioned to gain from improved connectivity to Brisbane via significant transport upgrades.
Units are back, but only in the right locations
Also worth noting is the renewed focus on unit markets, particularly in inner-urban and infrastructure-rich locations.
Markets such as Belmont, Parramatta, and West Torrens are highlighted for offering a combination of relatively low entry prices, strong rental yields, and proximity to employment hubs.
However, the report also flags a critical caveat: not all unit markets are equal.
In Parramatta, for example, established, low-density units in well-connected precincts are preferred, while high-rise oversupply remains a risk.
Image by David Pickup on Pexels
