10 locations across the nation identified as offering strong long-term capital growth potential
Property research firm Hotspotting has published its National Top 10 Best Buys report for May 2026, identifying local government areas it considers well-placed for sustained capital growth over a five-to-ten-year horizon.
The list features markets with structural fundamentals rather than short-term momentum, including demand depth, sales activity trends, rental market tightness, infrastructure spending, employment growth, population movement, and affordability.
"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," said Terry Ryder, founder at Hotspotting.
He pointed to the track record of its March 2024 selections as evidence of the approach's effectiveness. "In March 2024, we identified 10 LGAs we believed were well-positioned for future growth, which subsequently have recorded two-year average capital growth of 275," Ryder said.
The 10 locations selected in the May 2026 report are:
Greater Hobart, TAS: Momentum is building across Hobart, Clarence, Glenorchy and Kingborough, backed by major infrastructure projects, tight vacancy rates and comparatively strong yields for a capital city.
Belmont, WA: Belmont's unit market offers near-city access to Perth's CBD and airport economy, with median prices between $580,000 and $615,000 and yields in the mid-five to six percent range.
West Torrens, SA: West Torrens sits just west of the Adelaide CBD, with billions in committed infrastructure spend — including the $15 billion T2D tunnel and a $600 million airport upgrade — underpinning its investment case.
Greater Bendigo, VIC: Greater Bendigo ranks among the top municipalities in Hotspotting's Price Predictor Index, with a dozen suburbs recording rising transaction levels and most houses priced between $500,000 and $650,000.
Sunshine Coast rail towns, QLD: Towns including Beerwah, Landsborough, Nambour and Palmwoods offer affordable entry points into the Sunshine Coast economy, with connectivity set to improve under the Beerburrum to Nambour Rail Upgrade and the Direct Sunshine Coast Rail Line.
Muswellbrook, NSW: Muswellbrook is drawing renewable energy investment as the Hunter Valley transitions away from coal, with solar, wind, battery, pumped hydro and hydrogen projects lifting economic activity and supporting yields.
Greater Dandenong, VIC: Greater Dandenong is home to more than 5,000 businesses and roughly 10% of Victoria's manufacturing sector, placing it among Australia's top 10 LGA property markets in Hotspotting's Price Predictor Index.
City of Parramatta, NSW: Parramatta's $31 billion economy and extensive infrastructure pipeline — including Sydney Metro West, Parramatta Light Rail and the Westmead Health Precinct — support demand for established, low-density units near transport and health precincts.
City of Ballarat, VIC: Ballarat's diversified economy spans health care, education, manufacturing, tourism and renewable energy, with 15 suburbs currently showing rising transaction levels in Hotspotting's Price Predictor Index.
Wagga Wagga, NSW: Wagga Wagga offers affordable entry points, strong yields and a diversified economic base, with multiple suburbs recording double-digit average annual growth over five years.
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
