A new report from Hotspotting has uncovered Australia’s top 10 locations for high rental yields, strong growth potential, and affordability.
The National Top 10 Positive Cash Flow Hotspots Report reveals where rental yields outpace the national average while backed by robust economic fundamentals.
Hotspotting Director Terry Ryder said investors are increasingly targeting property markets with strong rental returns alongside long-term 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,” Mr Ryder said.
“Cloverdale in Perth recorded an impressive 7.3% yield for units, buoyed by its strategic location near Perth and major infrastructure developments.”
Hotspotting General Manager Tim Graham said the top 10 list offers prime real estate opportunities for investors seeking both cash flow and capital appreciation.
“Other notable locations include units in Darwin City with a 7.5% yield, Mackay City on 7.2%, and Melbourne City, where unit investors are seeing 7.7% returns amid rising demand,” Mr Graham said.
“Moree in regional NSW leads the ranking with a market-leading 8.3% rental yield for houses, positioning itself as a growing hub for agribusiness and logistics.
“All of these locations have been selected based on a combination of affordability, strong local economies, infrastructure development, and increasing employment prospects.”
Hotspotting National Top 10 Positive Cash flow Hotspots
Cairns City, Queensland (units)
| Median Unit Price: | $470,000 |
| 12 Month Growth: | -10% |
| Rental Yield: | 7.7% |
| Vacancy Rate: | 0.7% |
Mr Ryder said the Cairns property market continues to demonstrate resilience, driven by affordability and record-low vacancies.
“As the city’s economy gains momentum, the city’s increasingly diverse industrial base is a key factor behind its strong growth trajectory,” he said.
“The city is now a hub for sectors such as healthcare, agriculture, education, defence, construction, mining, and information technology.
“This broadening economic base adds stability and long-term value to the market.”
Mr Ryder said the construction and resources sectors have emerged as major economic forces, fuelling thousands of new jobs in recent years.
“Cairns has become a powerhouse of employment, with the local government area recording an unemployment rate of just 2.9% in the December quarter – significantly below Queensland’s statewide rate of four per cent,” he said.
“With increasing demand, strong economic fundamentals, and ongoing development, Cairns is well-positioned for continued property market growth.”
Churchill, Victoria (houses)
| Median House Price: | $370,000 |
| 12 Month Growth: | 6% |
| Rental Yield: | 6.5% |
| Vacancy Rate: | 1.5% |
Mr Graham said the Latrobe Valley continues to surge as a prime destination for affordable living and benefiting from the ongoing Exodus to Affordable Lifestyle trend.
“Located just two hours south-east of Melbourne, the region is attracting buyers seeking value, lifestyle, and investment potential,” he said.
“For those looking to relocate to Victoria’s picturesque southeast, Latrobe Valley presents an outstanding opportunity with house prices below $400,000.”
He said high sales volumes across the five main towns reflect strong buyer interest, driven by the area’s country lifestyle, competitive property prices, and solid rental yields.
“Investors are taking advantage of the region’s low vacancy rates and long-term economic potential,” he said.
“Adding to its attractiveness, Latrobe Valley’s economy is undergoing significant diversification.”
With its affordable housing market, thriving economy, and enviable lifestyle, Latrobe Valley remains a standout choice for homebuyers and investors alike, Mr Graham said.
Cloverdale, Western Australia (units)
| Median Unit Price: | $490,000 |
| 12 Month Growth: | 25% |
| Rental Yield: | 7.3% |
| Vacancy Rate: | 2.5% |
Mr Ryder said the Belmont LGA, including Cloverdale, is rapidly becoming one of Perth’s most attractive investment and residential markets, fuelled by its prime location near the CBD and the ongoing expansion of Perth Airport.
“A proposed third runway is set to enhance the region’s connectivity, reinforcing its role in Western Australia’s future economic growth,” he said.
“With a strong financial outlook, the council has allocated $76 million in operating expenditure for FY2024/25, including $16 million earmarked for capital works projects.”
Mr Ryder said infrastructure remains a driving force behind Belmont’s transformation, with major road and rail projects boosting employment and enhancing accessibility.
“The local unemployment rate also dropped to 4.3% in December 2024, down from 5.2% the previous year,” he said.
Despite its proximity to the city centre, Belmont remains surprisingly affordable, attracting both investors and owner-occupiers, he said.
“As demand for well-located property grows, Belmont’s strong economic foundations and strategic development position it as a standout choice in the Perth market,” he said.
Darwin City, Northern Territory (units)
| Median Unit Price: | $395,000 |
| 12 Month Growth: | -5% |
| Rental Yield: | 7.5% |
| Vacancy Rate: | 1.0% |
Mr Graham said Greater Darwin’s property market is experiencing strong momentum, driven by high affordability and exceptional rental yields, making it one of Australia’s standout investment destinations.
“As major infrastructure projects continue to reshape the Top End, transaction levels surged in the second half of 2024, with experts predicting sustained growth well into 2025,” he said.
“The rise in transaction levels has been emphatic, signalling further price growth ahead.”
The Northern Territory’s robust economy is further supported by record investment levels, Mr Graham said.
“The January 2025 CommSec State of the States report ranked the NT as the nation’s leader in equipment investment, reporting a 47.5% increase over the past year – highlighting the rapid growth of industries across the region,” he said.
“Adding to Darwin’s appeal, the city’s unemployment rate fell to just 3.1% in December 2024, reinforcing its economic strength and expanding jobs market.”
Mackay City, Queensland (units)
| Median Unit Price: | $345,000 |
| 12 Month Growth: | 20% |
| Rental Yield: | 7.2% |
| Vacancy Rate: | 1.6% |
Mr Ryder said Mackay is emerging as one of Australia’s most dynamic regional hubs, with a booming economy fuelled by mining, agriculture, and tourism.
“With a Gross Regional Product now reaching $14.1 billion, the city is powered by its mining sector, which alone contributes $7.2 billion in local output,” he said.
“Mackay is a key supplier for both domestic and international markets, particularly as one of the nation’s top sugar-producing regions.
“Its industrial foundation remains strong, and the economy is expanding rapidly.”
Mr Ryder said the city is undergoing a wave of diversification, with billions of dollars in renewable energy projects either proposed or under way, alongside plans for a
$300 million world-leading fermentation facility.
“These initiatives position Mackay as a growing force in sustainable industries and advanced manufacturing,” he said.
“As Mackay continues to evolve, its combination of industry strength, economic diversity, and strategic development cements its position as a regional powerhouse.”
Melbourne City, Victoria (Units)
| Median Unit Price: | $440,000 |
| 12 Month Growth: | -4% |
| Rental Yield: | 7.7% |
| Vacancy Rate: | 2.1% |
Mr Graham said Melbourne has reclaimed its title as Australia’s largest city for the first time in over a century, following a boundary expansion in early 2023 that incorporated the district of Melton, adding nearly 19,000 residents.
“However, even without this adjustment, Melbourne’s population continues to soar, with projections indicating it could double by 2041,” he said.
“The demand for units in capital city Australia remains strong, with Melbourne benefiting significantly.
“Affordability challenges and evolving lifestyle preferences are driving a shift towards high-density living, with increasing numbers of investors and homeowners favouring units over standalone houses.”
In the City of Melbourne, high-density dwellings account for 86% of homes, reflecting the changing residential landscape, he said.
“Transaction levels are showing positive momentum across the city’s suburbs, reinforcing Melbourne’s position as a thriving property market amid sustained population growth and urban expansion,” he said.
Moree, New South Wales (houses)
| Median House Price: | $282,000 |
| 12 Month Growth: | -15% |
| Rental Yield: | 8.3% |
| Vacancy Rate: | 1.5% |
Mr Ryder said the Moree Plains LGA is set for a transformation, emerging as a key hub for business and investment as it moves into a new phase of economic expansion.
“Identified by the NSW State Government as a Special Activation Precinct, the region is poised to become a centre for agribusiness, logistics, and food processing, leveraging its established agricultural industry and strategic transport links,” he said.
“Moree has significant growth potential given its access to the Inland Rail Link and upgraded highways, which will enhance connectivity and drive economic activity.
“This precinct status places Moree in a strong position to capitalise on new investment opportunities,” he said.
“Further boosting its diversification, the Moree Plains Shire Council has partnered with the University of New England to establish a Moree campus, designed to anchor industry-focused education and innovation.”
Notting Hill, Victoria (Units)
| Median Unit Price: | $350,000 |
| 12 Month Growth: | -2% |
| Rental Yield: | 7.7% |
| Vacancy Rate: | 1.6% |
Mr Graham said located just 20 kilometres’ southeast of Melbourne’s CBD, the City of Monash, including the suburb of Notting Hill, is emerging as a powerhouse municipality, with sustained population and economic growth shaping its future.
“Home to more than 190,000 residents, Monash is expected to surpass 250,000 by 2041, fuelled by major infrastructure projects, strategic development initiatives, and a thriving employment base,” he said.
“The city plays a pivotal role in Greater Melbourne’s economy, contributing nearly five per cent of its total economic output. Key industries – including healthcare, education, and manufacturing – continue to strengthen Monash’s position as a major employment centre.”
A key driver of Monash’s economic success is the Monash National Employment and Innovation Cluster (NEIC), one of Australia’s largest employment hubs outside the CBD, he said.
“The cluster has cemented Monash’s reputation as a centre for innovation, research, and high-skill job creation,” Mr Graham said.
“The local property market remains steady, with growth and resilience seen in select suburbs as demand continues to rise in this high-potential region.”
Red Cliffs, Victoria (houses)
| Median House Price: | $420,000 |
| 12 Month Growth: | 17% |
| Rental Yield: | 6.8% |
| Vacancy Rate: | 2.0% |
Mr Ryder said Mildura – a vibrant regional city on the banks of the Murray River in Victoria’s far northwest – is undergoing a transformation driven by rapid population growth, large-scale residential development, and booming investment in renewable energy.
“The city appeals to retirees, tree-changers, and first home buyers, noting its role as the primary service hub for the Sunraysia region,” he said.
“With a population of 57,000, Mildura is seeing strong demand for housing, supported by the planned development of a ‘super suburb’ in Mildura South.”
Adding to its momentum, the Sunraysia region sits at the northern end of the Murray River Renewable Energy Zone, a key driver of economic expansion, Mr Ryder said.
“Investment in wind, solar, and battery projects is injecting billions of dollars into the region and generating hundreds of new jobs,” he said.
“With sustained growth across housing, infrastructure, and clean energy, Mildura is positioning itself as one of Victoria’s most dynamic regional centres.”
Zuccoli, Northern Territory (houses)
| Median House Price: | $585,000 |
| 12 Month Growth: | 11% |
| Rental Yield: | 7.1% |
| Vacancy Rate: | 1.0% |
Mr Graham said as Greater Darwin experiences a period of expansion, the LGA of Palmerston is emerging as a key beneficiary, with increased housing demand driving price growth across its suburbs.
“Palmerston’s affordability compared to other capital cities has heightened buyer interest in Darwin’s outer-ring precincts, which is pushing property values higher,” he said.
“Most Palmerston suburbs are seeing rising transaction levels, though Zuccoli has reached a plateau.”
Offering a balance of affordability and lifestyle appeal, Palmerston remains an attractive option for both homeowners and investors, with solid rental yields reinforcing its desirability, Mr Graham said.
“With ongoing economic expansion and increasing demand for housing, Palmerston is positioned for sustained development and market resilience,” he said.
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