Lists of “best suburbs to invest in Australia” are everywhere — but most of them are outdated, commission-driven, or based on metrics that don’t actually matter to long-term investors. This guide explains the framework BrickByBrick uses to evaluate suburbs, and what data to look at when you’re doing your own research.
Why generic suburb lists are mostly useless
When a real estate agency or property educator publishes a “top suburbs to invest in” list, they’re usually promoting areas where they have stock to sell, or generating content that drives enquiries. The same suburbs appear on multiple lists, which can create short-term price spikes driven by herd behaviour rather than fundamentals. By the time a suburb makes a top-10 list, the window of opportunity has often already passed. Your research should focus on the underlying drivers of growth, not the outcome.
The metrics that actually matter
Vacancy rates: A low vacancy rate (under 2%) indicates strong rental demand relative to supply. SQM Research publishes vacancy rate data by suburb, updated monthly. A vacancy rate above 3% is a warning sign — it suggests there’s more rental stock than tenants, which can push rents down and leave you with empty periods.
Days on market: How long are properties sitting unsold? Short days-on-market figures indicate strong buyer demand, which typically leads to price growth. You can find this data on CoreLogic and in REA Group’s market reports.
Population and employment growth: Areas with growing populations — driven by employment, infrastructure, or lifestyle factors — tend to see sustained property demand. The ABS publishes regional population data, and state government infrastructure pipelines are publicly available.
Infrastructure spending: New train lines, hospitals, universities, and shopping centres increase the liveability and accessibility of a suburb, which tends to push values up. Look at state infrastructure budgets and planning announcements for early signals.
Stock on market: How many properties are listed for sale relative to the historical average? When listing volumes are low and buyer demand is steady or rising, prices tend to move up. SQM’s stock on market data is one of the better leading indicators for short-term price direction.
Capital city vs regional: what to consider in 2025
The post-pandemic period saw strong growth in regional Australia as remote work expanded where people could live. Some of that growth has moderated, and regional markets in 2025 are more varied than they were in 2021–2022. Strong regional centres with diverse local economies (like Geelong, Newcastle, Ballarat, and Toowoomba) have held up better than smaller single-industry towns. In capital cities, Brisbane and Perth have been the strongest performers in recent years, driven by interstate migration and relatively affordable entry prices compared to Sydney and Melbourne.
A suburb research process that works
Rather than starting with a suburb and justifying it, start with the metrics and let them point you to locations. A practical research process: (1) Filter SQM data for suburbs with vacancy rates under 2% in states or regions you’re comfortable investing in. (2) Cross-check those suburbs for days-on-market trends and stock levels. (3) Look at recent sale price history — are prices trending up, flat, or declining? (4) Check planning overlays and zoning for any supply risk (large development sites nearby can flood the market with new rental stock). (5) Call two or three local property managers and ask what rents are achieving, how fast properties are leasing, and what tenant demand looks like. Local PMs have ground-level data that no report can match.
Resources to use for suburb research
SQM Research (vacancy rates, stock on market), CoreLogic (price history, days on market), PropTrack (REA Group’s market data), ABS (population and migration data), state planning portals (infrastructure pipelines and zoning). For a curated list of research tools, see our property investing tools page. And if you’re still working out the basics of the purchase process, our guide on how to buy an investment property in Australia is a good starting point.
General Advice Warning: This article is general in nature and does not constitute personal financial advice. Please consult a licensed financial adviser before making investment decisions.
