When it comes to property investment, location plays a crucial role in determining your financial success. In 2024, Queensland is emerging as a top destination for investors, offering a variety of markets with strong growth potential, solid rental yields, and long-term capital gains. As the property market continues to evolve, it’s more important than ever to pinpoint the best-performing areas to build a successful portfolio.
With over 20 years of industry experience as mortgage brokers, we've seen firsthand how critical choosing the right location can be. In this guide, we’ll highlight Queensland’s top 10 investment hotspots—whether you're interested in vibrant coastal towns or bustling city suburbs, these locations present the best opportunities for investors looking to maximise their returns.
Why Invest in Queensland in 2024?
Queensland continues to be a hotspot for property investment, with its thriving economy, population growth, and strong demand for housing.
Whether you’re a first-time investor or a seasoned buyer, Queensland offers an array of opportunities, especially with property prices still more affordable compared to Sydney and Melbourne.
Here’s why 2024 is a great year to invest in Queensland.
1. Market Stability and Growth Projections
Queensland’s property market has remained resilient, even as other markets around Australia have faced fluctuations. According to CoreLogic’s latest report, Brisbane’s property values increased by an average of 5.6% over the past 12 months, driven by strong interstate migration and limited supply.
As of early 2024, experts predict continued growth, particularly in the southeast regions, with price increases expected in the 3-5% range.
For those targeting coastal regions, Gold Coast and Sunshine Coast have also seen strong growth, with median house prices rising 6.2% and 7.1% respectively in 2023. These areas are expected to maintain steady demand, especially for lifestyle properties, contributing to their ongoing capital growth.
2. Economic Growth and Job Opportunities
Queensland’s economic outlook for 2024 remains strong, bolstered by significant investment in renewable energy, infrastructure, and technology.
According to the Queensland Government, the state's economy is expected to grow by 3.25% in 2024, thanks to the state’s diverse industries like mining, tourism, healthcare, and agriculture.
Additionally, Queensland's unemployment rate is projected to stay low at around 4%, below the national average. The growing job market, particularly in key urban areas like Brisbane and regional centres such as Townsville and Cairns, continues to attract workers from other states, which fuels demand for both rental and owner-occupier properties.
3. Major Infrastructure Projects
Queensland is undergoing a wave of infrastructure projects that are set to enhance its property market significantly. Major developments include the Cross River Rail and Brisbane Metro, which will improve public transport access and reduce congestion in high-demand suburbs. These projects are expected to drive up property values in nearby areas such as Woolloongabba, Dutton Park, and Bowen Hills.
The state is also preparing for the 2032 Brisbane Olympic Games, with billions being invested in infrastructure like venues, roads, and public transport. This will likely lead to a long-term boost in property values, particularly in suburbs close to Olympic precincts such as Brisbane CBD, Fortitude Valley, and Kangaroo Point.
4. Government Incentives for Investors
Investors in Queensland can take advantage of several government incentives. The First Home Owners' Grant offers up to $15,000 for those building or purchasing new homes under $750,000 (QLD Government). There are also attractive tax depreciation benefits for new properties, allowing investors to claim deductions for the decline in value of items like fixtures and fittings, which can reduce taxable income.
Queensland also benefits from negative gearing, which allows investors to deduct losses from their rental income against other income, reducing their overall tax bill. Combined with capital gains tax exemptions for primary residences, this makes Queensland an investor-friendly state.
5. Lifestyle and Quality of Life
Queensland’s enviable lifestyle continues to attract new residents, particularly from southern states. With a subtropical climate, stunning beaches, and outdoor activities available year-round, it’s no wonder that Queensland is growing in popularity. Brisbane offers a mix of urban living with easy access to nature, while the Gold Coast and Sunshine Coast provide laid-back coastal lifestyles with strong infrastructure and services.
In addition, Queensland’s relatively affordable housing compared to Sydney and Melbourne allows both investors and families to find great value. The average price of a home in Brisbane is around $781,000 (as of January 2024, according to Domain), which remains significantly lower than the median house price in Sydney or Melbourne.
By combining economic growth, major infrastructure projects, attractive government incentives, and Queensland’s high quality of life, 2024 presents an excellent opportunity for investors.
Whether you’re seeking capital growth, solid rental returns, or a valuable addition to your investment portfolio, Queensland has the potential to meet your financial goals.
Top 10 Investment Locations in Queensland
Queensland’s property market is buzzing with investment potential, and 2024 is shaping up to be an exciting year for savvy property investors. From bustling cities to coastal havens and regional powerhouses, Queensland offers a diverse range of locations for those looking to grow their investment portfolios.
Below are the top 10 investment locations across the state for 2024, highlighting the best suburbs and key opportunities.
1. Brisbane
Why Invest: Brisbane, the capital of Queensland, continues to attract investors with its affordability compared to Sydney and Melbourne, alongside robust infrastructure growth.
With major projects like the Cross River Rail and preparations for the 2032 Olympics, Brisbane's inner-city suburbs are undergoing significant urban renewal, driving strong demand, offering attractive rental yields, and positioning the city for long-term capital growth.
Median House Price: $800,000
Rental Yield: 4.5%
- Key Suburbs to Watch:some text
- Woolloongabba: $1.2M, rental yield 3.8%
- Kangaroo Point: $1.5M, rental yield 4.2%
- Nundah: $850,000, rental yield 4.3%
2. Gold Coast
Why Invest: The Gold Coast is a prime investment location for lifestyle seekers and investors, with its booming tourism industry, excellent beaches, and major infrastructure projects like the Light Rail extension.
The region's strong lifestyle appeal and consistent population growth continue to drive property values higher, while its tourism-driven economy ensures high rental yields, particularly in short-term holiday rentals, making it a hotspot for both rental income and long-term growth.
Median House Price: $1,050,000
Rental Yield: 4.4%
- Key Suburbs to Watch:some text
- Southport: $750,000, rental yield 4.8%
- Burleigh Heads: $1.5M, rental yield 3.9%
- Pimpama: $750,000, rental yield 4.5%
3. Sunshine Coast
Why Invest: The Sunshine Coast offers a more relaxed lifestyle than the Gold Coast, making it a magnet for families and retirees while experiencing equally attractive growth.
Major investments in the Sunshine Coast University Hospital, the expanding Sunshine Coast Airport, and Maroochydore’s new CBD development are driving strong demand for both residential and commercial investment, further boosting the region's appeal and growth potential.
Median House Price: $940,000
Rental Yield: 4.1%
- Key Suburbs to Watch:some text
- Caloundra: $980,000, rental yield 4.0%
- Birtinya: $850,000, rental yield 4.2%
- Maroochydore: $950,000, rental yield 3.8%
4. Ipswich
Why Invest: Ipswich, located southwest of Brisbane, is fast becoming a key growth corridor with its affordable house prices and excellent transport links to Brisbane’s CBD.
As one of the fastest-growing regions in South East Queensland, Ipswich attracts both first-home buyers and investors seeking long-term capital growth and solid rental yields.
The area's strong population growth, particularly in master-planned communities like Springfield and Ripley, is further fueled by major residential and commercial developments.
Median House Price: $590,000
Rental Yield: 5.2%
- Key Suburbs to Watch:some text
- Springfield: $650,000, rental yield 5.1%
- Ripley: $580,000, rental yield 5.3%
- Redbank Plains: $520,000, rental yield 5.4%
5. Toowoomba
Why Invest: Toowoomba, a regional powerhouse west of Brisbane, is booming as an agricultural and logistics hub, with the new Toowoomba Wellcamp Airport significantly boosting its economic outlook.
Known for its affordable property prices and excellent rental yields, Toowoomba offers strong long-term prospects, making it an appealing choice for investors seeking growth in a high-demand area driven by agriculture and expanding logistics.
Median House Price: $580,000
Rental Yield: 5.5%
- Key Suburbs to Watch:some text
- Middle Ridge: $750,000, rental yield 4.3%
- Glenvale: $530,000, rental yield 5.2%
- Kearneys Spring: $580,000, rental yield 5.0%
6. Cairns
Why Invest: Cairns, Queensland’s tropical jewel, is popular with tourists and those seeking a laid-back lifestyle. While tourism remains a key economic driver, the growing education and healthcare sectors are also boosting demand for residential properties.
With high rental yields and affordable property prices, Cairns offers a well-rounded investment location where lifestyle appeal and strong tourism continue to drive strong rental demand.
Median House Price: $560,000
Rental Yield: 5.7%
- Key Suburbs to Watch:some text
- Edge Hill: $850,000, rental yield 4.8%
- Manunda: $450,000, rental yield 5.9%
- Redlynch: $700,000, rental yield 5.0%
7. Townsville
Why Invest: Townsville, North Queensland’s largest city, boasts a strong economy driven by mining, defence, and education, making it a prime spot for investors seeking high rental yields and capital growth.
Major projects like the Port of Townsville expansion and Townsville Stadium further boost the city's appeal. With its affordable housing and diverse economy, Townsville offers stable property market conditions and high rental demand, providing solid entry points for investors.
Median House Price: $430,000
Rental Yield: 5.9%
- Key Suburbs to Watch:some text
- North Ward: $750,000, rental yield 4.7%
- Douglas: $550,000, rental yield 5.5%
- Mount Louisa: $480,000, rental yield 5.6%
8. Logan
Why Invest: Logan, located between Brisbane and the Gold Coast, is a fast-growing area with a mix of residential, commercial, and industrial developments. Known for offering some of the most affordable housing in South East Queensland, Logan is popular with first-time investors and those entering the market on a budget.
Rapid population growth, along with new developments and infrastructure improvements, are driving up property values while maintaining strong rental demand, making it an ideal choice for investors.
Median House Price: $580,000
Rental Yield: 5.4%
- Key Suburbs to Watch:some text
- Yarrabilba: $600,000, rental yield 5.1%
- Beenleigh: $520,000, rental yield 5.4%
- Logan Reserve: $570,000, rental yield 5.3%
9. Mackay
Mackay’s economy, driven by the mining and agriculture sectors, has rebounded after years of slow growth, now offering great opportunities for investors seeking affordable property and high rental yields.
With infrastructure projects and the Port of Mackay development fueling its expansion, Mackay has emerged as a growing regional hub. Its diverse economy and affordable housing market, particularly in outer suburbs with good city access, make it a strong contender for future growth and attractive investment returns.
Median House Price: $550,000
Rental Yield: 5.8%
- Key Suburbs to Watch:some text
- Mount Pleasant: $700,000, rental yield 4.5%
- Andergrove: $490,000, rental yield 6.0%
- Eimeo: $550,000, rental yield 5.7%
10. Hervey Bay
Hervey Bay, known for its laid-back coastal lifestyle, is increasingly attracting retirees and sea-changers, driving both property demand and values. The local economy, fueled by tourism—particularly whale watching—and infrastructure developments to support a growing population, makes it an appealing destination.
With affordable prices, a strong rental market, and steady growth, Hervey Bay offers excellent lifestyle appeal and is a solid investment choice for those seeking a coastal retreat.
Median House Price: $620,000
Rental Yield: 4.9%
- Key Suburbs to Watch:some text
- Urangan: $700,000, rental yield 4.6%
- Point Vernon: $650,000, rental yield 5.1%
- Pialba: $550,000, rental yield 5.3%
Sources: Realestate.com.au, SQM Research, CoreLogic, Domain
Key Factors to Consider When Investing in Queensland
Investing in Queensland’s property market can be highly rewarding, but like any investment, it requires careful consideration of several key factors. Here are Queensland-specific key factors to consider:
* Location and Growth Potential: In Queensland, certain regions are experiencing significant population growth and development. Areas like South East Queensland (Brisbane, Gold Coast, Sunshine Coast) are projected to see continued growth, driven by interstate migration and infrastructure upgrades.
Regional hubs like Ipswich and Toowoomba are also expanding due to affordable housing and proximity to major transport links. When choosing a location, consider areas with high population growth and future developments (Queensland Government Population Projections).
* Rental Demand and Yield: High rental demand in Queensland is often found in areas close to universities, hospitals, and tourist destinations. Brisbane, with its proximity to education hubs like the University of Queensland and major hospitals, offers steady rental yields.
Coastal regions like the Gold Coast and Cairns also benefit from tourism-driven rental markets, particularly in short-term and holiday rentals, which can deliver strong returns. According to SQM Research, rental yields in regional areas like Townsville and Ipswich are above 5%, making them attractive for investors.
* Infrastructure Developments: Queensland’s ongoing infrastructure projects are a key driver of property value appreciation. Major projects like Brisbane’s Cross River Rail, Brisbane Metro, and the Gold Coast Light Rail extension are improving connectivity and boosting demand in surrounding suburbs.
Additionally, the 2032 Brisbane Olympics will bring significant investment into urban renewal projects across the city, which is expected to increase property values over the next decade.
* Economic Stability: Queensland has a diversified economy with strong sectors such as mining, tourism, agriculture, and education, which provide stability in different regions. Mining towns like Mackay and Townsville offer affordable entry points with high rental yields due to demand from workers in these industries.
Meanwhile, tourism drives the economies of Cairns and the Sunshine Coast, providing steady demand for both residential and short-term rental properties (Queensland Treasury Economic Data).
* Government Incentives: Queensland offers several government incentives that can benefit investors. For example, the First Home Owners' Grant provides up to $15,000 for new homes valued under $750,000, which can be useful if you're building an investment property.
Additionally, there are depreciation benefits available for new properties, allowing investors to claim deductions on the decline in value of assets like fixtures and fittings (ATO).
8 Expert Tips for Investment Buyers
Navigating the real estate market can be tricky, but with the right investment strategies and guidance, you can successfully identify the perfect property for your portfolio.
Whether you're an experienced buyer or just starting your investment journey, these expert tips will help you choose market properties and streamline the entire process of securing your ideal investment.
1. Know Your Financial Limits
Having a deep understanding of your finances is crucial in any property investment strategy. Work with an expert team of property investment experts to review your borrowing power and ensure you’re comfortable with the potential purchase price.
This will help you stay within your price range and focus on suitable properties that fit your budget, ensuring you're not chasing deals that don't align with your goals.
2. Research High-Growth Areas
Location is key in the Australian property market, and identifying market opportunities in Australian markets with strong annual capital growth is essential. Look for hot property areas where infrastructure development and population growth drive demand. Suburbs in Queensland like Logan and Toowoomba are experiencing significant growth, offering the perfect location for an experienced investor seeking long-term gains.
3. Consider Rental Yields
When building your investment property portfolio, Average Yield is a crucial factor. High yields can provide a steady income stream and increase your return on investment. Look for areas that offer solid potential return, with rental yields typically above 5%. Focus on property types that suit the area’s demographics, such as units in city centres or houses in family-friendly suburbs.
4. Choose the Right Property Type
The property type you invest in must align with your property goals and local demand. Consider whether commercial properties or residential homes fit your strategy. Properties near universities, hospitals, and business hubs tend to attract tenants, offering the perfect investment property buyer the chance to secure high-demand rentals. A balanced investment property portfolio will include various property types to mitigate risk.
5. Get Pre-Approval for a Loan
To speed up the purchase process and secure the perfect investment property, seek loan pre-approval. This ensures you know your budget and allows you to act quickly when market properties become available. An experienced buyer knows that having access to financing and being ready to move forward is key to staying competitive in a fast-moving real estate market.
6. Use a Buyer’s Agent
Working with an investment property buyer or a Buyer's Agent can be invaluable, especially for interstate or first-time investors. These professionals have a deep understanding of the Australian property market and can access suitable properties before they hit the market. Leveraging their combined experience and extensive experience can save you time and ensure you’re finding the ideal property that meets your specific search criteria.
7. Account for Extra Costs
While many investors focus on the purchase price, it's important to account for additional costs such as stamp duty, legal fees, and property management services. Having a strategic approach and budgeting for these expenses will help protect your return on investment. Factoring in ongoing costs such as maintenance and property management fees ensures you're fully prepared throughout the entire process.
8. Review Loan Options
When it comes to financing, it’s essential to compare different loan options. Interest-only loans can offer better cash flow for investors, but the choice depends on your investment goals. Partner with a mortgage broker to review options and create a strategic approach that aligns with your property investment strategy. With their guidance, you can make informed decisions and maximise your opportunities in the real estate industry.
Chat with Zest Mortgage Solutions
Need professional guidance? Whether you're planning to expand your investment portfolio or buy your first investment property, we’ve got your back! Reach us at (07) 3461 6499 or visit Zest Mortgage Solutions.
FAQs
What are the best places in Queensland for rental yield?
The best places in Queensland for rental yield include Logan, Ipswich, Townsville, and Cairns, where yields often exceed 5% due to strong rental demand and affordable property prices.
How do I finance my investment property?
Our team at Zest Mortgage Solutions can guide you through the borrowing process based on your financial situation.
Should I hire a property manager?
Hiring a property manager offers peace of mind, especially if you're investing interstate.
What type of property should I invest in?
This depends on your financial goals. Units in inner-city locations often provide strong rental yields, while houses in outer suburbs may offer better long-term capital growth.
How much can I borrow for an investment property?
This depends on your financial capabilities and borrowing costs. Speak to us for tailored advice.
What’s the process for buying an investment property in Queensland?
It involves setting your budget, searching for properties, securing finance, and completing the buying process with your real estate agent.
Conclusion
Queensland offers a wealth of investment opportunities, with a diverse range of locations providing strong rental yields, long-term capital growth, and affordable entry points for buyers.
Whether you're building your portfolio or making your first property purchase, choosing the right area is key to achieving your financial goals.
If you’re ready to explore these high-growth regions and need expert guidance, our team at Zest Mortgage Solutions is here to help you find the perfect property. Contact us today at (07) 3461 6499 or visit Zest Mortgage Solutions to take the next step in your property investment journey!
