New report highlights opportunities in Darwin, Melbourne, and regional markets with strong growth potential
Darwin and Melbourne have emerged as unexpected inclusions in Australia’s top property investment hotspots for 2025, according to property market trends and insights provider Hotspotting.
Its Top 10 National Best Buys report highlights regions with long-term growth potential, focusing on areas that are currently undervalued rather than overheated markets.
“We haven’t included any locations that are already hot, which is why there are no Perth, Adelaide, or many of the frenzied regional markets in Queensland included,” said Hotspotting general manager Tim Graham (pictured above left). “Instead, we have nominated places that present good buying opportunities and are not currently hot but with great potential for long-term growth.”
Hotspotting director Terry Ryder (pictured above right) cited affordability and strong fundamentals as key drivers for Melbourne and Darwin’s inclusion in the list.
“Melbourne faced challenges in 2023 and 2024, but it’s poised for a comeback next year,” he said. “Its price gap with Sydney, combined with high population growth, makes it an attractive option despite high state taxes and governance issues.”
“Demand for attached dwellings in Melbourne is driving rent growth, price increases, and new dwelling approvals,” Graham said. “The City of Casey remains a strong market with consistent long-term growth, particularly for first-home buyers.”
Meanwhile, Darwin’s appeal, according to Ryder, lies in its affordable housing and high rental yields. He noted that Darwin is undergoing a market recovery, particularly in suburbs such as Zuccoli, Gunn, Bellamack, Durack, and Woodroffe.
“Darwin is showing signs of price growth and is becoming more appealing to investors,” Ryder said. “Its market recovery over the past six months is notable, with increased sales activity and population growth.”
The 2025 investment hotspots include Melbourne, Casey, Ballarat, and Albury-Wodonga in Victoria; Sydney, Tamworth, and Albury-Wodonga in New South Wales; the Sunshine Coast and Redland City in Queensland; Darwin in the Northern Territory; and Launceston in Tasmania.
Graham predicted a revival in regional markets that have been relatively quiet in recent years.
“These ‘second-wind markets’ will reignite in 2025,” he said. “These are regions that experienced significant price growth from 2022 to 2024, took a breather, and are now gearing up for another round of growth.”
Regions expected to rebound include Albury-Wodonga and Tamworth in New South Wales, the Sunshine Coast and Hervey Bay in Queensland, Bendigo and Ballarat in Victoria, and Launceston and Burnie in Tasmania.
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