"Hot 100" spotlights affordable suburbs

For the third year in a row, the company behind PropTrack data analytics and Australia’s largest real estate listings site - realestate.com.au - has compiled a list of 100 suburbs to watch in the next 12 months.

In addition to traditional metrics such as capital growth and rental yield prospects, REA Group’s “Hot 100” for 2025 has a heavy emphasis on affordability and amenities. 

The result is an unusual list of suburbs, which, at first glance, seem to have little in common with many other “hotspot” lists.

The details

What do Ferntree Gully in Melbourne’s sprawling east, Avalon on Sydney’s affluent Northern Beaches, trendy Coorparoo in inner Brisbane, Australia’s “tuna capital” Port Lincoln and the historic pearling town of Broome in WA’s north have in common?

They all make the cut on REA Group’s “Hot 100 suburbs to watch in 2025” list.

To compile the “Hot 100”, REA Group brought together 20 experts, including representatives of several big real estate chains, buyer’s agents, a property academic and two economists from REA Group’s PropTrack.

In total, this group nominated 226 Australian suburbs.

The criteria they were given were as follows:

This list was then whittled down to 100 suburbs using various PropTrack data points and economic analysis.

These included population growth, demographics, demand and supply as measured by enquiries on realestate.com.au, median price changes over a year and 10 years, vacancy rates, median rental yields and the distance to a capital city CBD.

“In a lot of instances, the places that have been chosen are more affordable areas, particularly in the capital cities,” PropTrack Director of Economic Research Cameron Kusher says.

“It's about opening your eyes to other suburbs out there,” says PropTrack Economist Anne Flaherty.

She says many of the suburbs selected may benefit from amenities in neighbouring areas, or be starting to see “gentrification”. 

“We know that a growing number of buyers are being priced out of more and more suburbs. 

“So, people are having to sort of broaden their horizons to other areas that they might be able to buy in.” 

Nevertheless, many of these lesser-known suburbs have strong investment prospects, according to Anne Flaherty. 

“One of the trends that stood out to me immediately is a lot of them are relatively high-yielding suburbs. 

“So, they have a relatively high level of rental income relative to the actual price of the property,” she says.

WA shines, Melbourne to recover

PropTrack Research Director Cameron Kusher says this is particularly true in Western Australia.

"Even though prices have gone up a lot in WA, if you're an investor focused on the yield, it definitely still ticks the box, and you're still getting that capital growth," he says.  

Despite recent price declines in Melbourne, PropTrack Economist Anne Flaherty tips Melbourne for strong future growth.

"I do think Melbourne is well placed for a recovery," she says. 

"If you look at the fundamentals of Melbourne's property market, it is forecast to be the strongest growing capital city [for population], it has the most diverse local economy, it attracts very high numbers of international students and international migrants.

"It's also been relatively better at providing more housing supply, but that is going to start to change. 

“We are seeing a very significant slowdown in the rate of new construction activity in Victoria. 

“So, at some point, that population growth, and the slowdown in housing supply is going to lead property prices in Melbourne back upwards," she says.

Victoria

In Melbourne, the “Hot 100” list includes well-established suburbs such as Blackburn South, Braybrook, Coburg, Croydon, Ferntree Gully, Reservoir, Spotswood, St Kilda East and Werribee.

The regional cities of Bairnsdale and Shepparton get the nod, as do Geelong West and the Ballarat suburb of Soldiers Hill.

One of the best performers from an investor perspective is Werribee in Melbourne’s outer west, which has relatively low prices, good amenities, plenty of infrastructure development, and good rental yields for houses and units.

Western Australia

Eleven WA suburbs make REA’s “Hot 100” list, 7 of them in Perth, with the coastal towns of Geraldton, Mandurah, Busselton and Broome in WA’s north notching up a spot as well. 

With spectacular price growth in booming Perth over the last 2 years eroding rental yields, the clear standout is the tourist centre of Broome. 

One of the 20 property experts who compiled the list, Ray White executive Bianca Denham, says, “with a growing economy driven by tourism, agriculture, and mining, Broome offers investment opportunities alongside a laid-back lifestyle.”  

New South Wales

Despite its pricey real estate, 12 Sydney suburbs get the nod, including Avalon Beach, Narrabeen and Frenchs Forest on the Northern Beaches, inner city suburbs like St Peters and Enmore, and tiny pockets like Wattle Grove near Liverpool in Sydney’s sprawling south-west.  

Regional towns like Coffs Harbour, Inverell, Orange and Batemans Bay make the “Hot 100” list, as do several suburbs located on the Central Coast, and in the cities of Newcastle and Wollongong.  

From an investor perspective, one of the big surprises is the inclusion of the largely industrial suburb of Prestons in Sydney’s southwest, nominated for its gentrification, fast population growth, number of schools, and proximity to Western Sydney Airport due to open in 2026.  

Queensland

No less than 27 suburbs in the Sunshine State make the cut in the “Top 100” - the most of any single state or territory.

The highly populated southeast of the state dominates: 13 of these suburbs are in suburban Brisbane, three are on the Gold Coast, and four are on the Sunshine Coast.  

Some of the best prospects for investors in the southeast can be found in Coomera at the northern end of the Gold Coast.

A new public hospital is under construction, and the area will host volleyball at the 2032 Brisbane Olympic Games.

South Australia

13 suburbs or regional towns in South Australia make the “Hot 100” list, 10 of them located in Adelaide - many in the city’s booming north or lesser-known beachside suburbs.

Munno Para West is the clear capital city standout for investors, with new homes, a big infrastructure spend and good access to the Adelaide CBD via the Northern Expressway, making it what REA Group says is “a popular option for young families.”