Australia’s regional towns are powering ahead, with new analysis revealing that regional towns dominate the best locations to achieve an investment trifecta.

REA Group has identified the top 37 locations that offer the investment trifecta – affordability, solid capital growth and high yields. It analysed the investment potential of suburbs it had already identified as being in sought-after locations and appealing to families.

The results include house and unit suburbs all with prices below national medians, growth above national medians (4% for houses and 3.6% for units) and yields above national medians (4% for houses and 4.9% for units). Of those 37, 24 are house markets and 21 are unit markets. Queensland and South Australia had the most suburbs where investors could find houses that met the criteria for investment prospects.

In the house market, Rockhampton in Queensland tops the list with the lowest median house price of $359,500, the highest annual price growth of 53% and the highest rental yield at 6.5%.
Kirwan in Townsville, Gatton in Queensland’s Lockyer Valley, Munno Para West and Andrews Farm in Adelaide all made the list, with each recording price growth of more than 20% in the year to February. Six suburbs in Western Australia are on the house market list, two in New South Wales, and one in Tasmania.

Queensland had eight unit markets on the list, followed by Victoria (4), West Australia (3), Tasmania and the ACT with two, and New South Wales and South Australia with one each.
Wright in the ACT and Mandurah in West Australia topped the list of unit markets with the strongest yields of 5.7%.