Report reveals investment-ready markets with both income potential and capital gains
Ten suburbs across Australia are standing out for their high rental returns, low entry costs, and solid long-term prospects, according to new analysis from property research firm Hotspotting.
The National Top 10 Positive Cash Flow Hotspots Report highlights areas where rental yields exceed the national average and are supported by robust economic indicators. The list spans capital cities and regional centres, reflecting increased investor interest in cash flow-friendly property markets.
Hotspotting director Terry Ryder (pictured above) said rising investor activity is being driven by the combination of strong rental returns and future growth prospects. “Among the standout locations in our latest research are Cairns City, offering a 7.7% rental yield for units, and Churchill in Victoria, where houses achieve a 6.5% yield – driven by a thriving economy and affordable prices,” he said.
Cairns City, Queensland, has a median unit price of $470,000, a yield of 7.7%, and a vacancy rate of 0.7%. Despite a 10% decline in unit prices over the past year, the city’s unemployment rate sits well below the state average, helped by growth in sectors like construction, defence, and healthcare. “As the city’s economy gains momentum, this broadening economic base adds stability and long-term value to the market,” Ryder said.
Churchill in Victoria, where the median house price is $370,000, delivers a 6.5% yield and maintains a 1.5% vacancy rate. Its popularity stems from affordability and regional lifestyle appeal, as part of the broader Latrobe Valley area.
In Cloverdale, Western Australia, the unit market has shown 25% annual growth, with a median price of $490,000 and a 7.3% yield. The area is benefiting from infrastructure upgrades and its proximity to the Perth CBD. The local unemployment rate also dropped to 4.3% in December 2024.
Hotspotting general manager Tim Graham said the selected suburbs offer a mix of cash flow and growth appeal.
Darwin City units are returning 7.5% yields on a median price of $395,000, with a vacancy rate of 1%. The Northern Territory’s property sector is supported by strong investment in infrastructure and growing job opportunities. Transaction levels surged in the second half of 2024, Graham said.
Mackay City units are priced at $345,000 with a 7.2% yield and a 1.6% vacancy rate. Its economy is being driven by mining, agriculture, and tourism, and increasingly by renewables and advanced manufacturing. The city is undergoing a wave of diversification, Ryder said.
In Melbourne City, units offer a 7.7% return on a median price of $440,000, with a vacancy rate of 2.1%. A rising population and affordability pressures are boosting demand for high-density housing.
Moree in New South Wales offers the highest rental yield in the report at 8.3%, with a median house price of $282,000 and a 1.5% vacancy rate. Its designation as a Special Activation Precinct is fuelling growth in agribusiness and logistics. This precinct status places Moree in a strong position, Ryder pointed out.
Notting Hill in Victoria, part of the Monash local government area, shows a 7.7% yield for units priced at $350,000, with vacancies at 1.6%. The suburb benefits from a growing local economy and its inclusion in the Monash National Employment and Innovation Cluster.
In Red Cliffs, also in Victoria, houses are generating 6.8% yields on a median price of $420,000, with a 2.0% vacancy rate. The Mildura region is growing rapidly thanks to housing development and renewable energy investment.
Zuccoli in the Northern Territory has a 7.1% yield, with houses priced at $585,000 and a 1% vacancy rate. As part of the expanding Palmerston LGA, the suburb benefits from Greater Darwin’s growth and relative affordability.
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.
