A leading buyers’ agent says a widening mismatch between investor demand and supply at a critical price point has created both a quiet crisis and a genuine opportunity, and he’s mapped 30 locations across six state jurisdictions set to take advantage.
Kane Dury, principal of Discover Buyers Agency, said, “Recent data confirms exactly what we’re seeing across our client base – that frustrated investors can’t find a home that matches their criteria.”
Mr Dury cited recent analysis showing that nearly half of all property investor enquiries in Australia target property priced under $700,000, yet homes at that price point make up only three in ten dwellings nationally.
The March 2026 PropTrack Westpac Investor Report reveals the scale of demand compression at the affordable end of the market. Not only are investors flooding back with new investor loans up 64 per cent since the early-2023 low, but they are also overwhelmingly concentrated in a price band that the national housing stock is struggling to supply.
“Investors who understand where to look can still build meaningful wealth at this price point, provided they are willing to think beyond the capital city postcode.
“The conversation about property has become so fixated on capital city medians that a huge cohort of everyday investors has been left with the impression that the door is closed,
“It is not closed. Successful long-term investors will be the ones who are strategic about where established housing fundamentals, such as population growth, tight rental supply, strong owner-occupier ratios, and multiple economic drivers, are doing the heavy lifting.”
Mr Dury said current political manoeuvrings are distracting Aussies from what really matters when investing.
“With Treasury actively modelling changes to the CGT discount and negative gearing ahead of the May budget, some investors will sit on their hands waiting for certainty. That’s understandable, but it misreads where the real risk lies.
“A well-selected, established property in a market with genuine economic fundamentals will outperform a poorly chosen asset under any tax regime. The tax tail should never wag the investment dog.”
Mr Dury says the type of asset matters as much as the location, and that not all $700,000 properties are created equal.
“New and off-the-plan product is almost always priced to include a developer margin, sales commission and marketing costs that come directly out of the buyer’s equity from day one,” he said.
“Established homes in established streets in established communities don’t carry that premium. They have rental history, genuine comparable sales data, and they sit in neighbourhoods where the infrastructure, like schools, hospitals, transport, and retail already exists. That is where long-term capital growth comes from.”
Mr Dury also said real estate investors should never adopt a one-size-fits-all mindset.
“A location that is right for a 30-year-old PAYG investor building a first portfolio is not necessarily best for a 50-year-old trying to replace an income in retirement,” he said. “The $700,000 price point is the starting reference, but any investment plan must be bespoke to the investor themselves.”
Mr Dury’s analysis reveals sub-$700,000 markets across the five states with investments delivering both strong gross rental yields and meaningful capital growth prospects.
“These are established communities with real economic bases, genuine rental demand and housing stock that has stood the test of time.”
30 SUBURBS: A STATE-BY-STATE BREAKDOWN
Mr Dury has identified five suburbs per state across Queensland, New South Wales, Victoria, South Australia, Western Australia and the Northern Territory that represent compelling investment opportunities for buyers working with a budget of up to $700,000.
QUEENSLAND
Suburb Median price Key fundamentals Condon, Townsville $687,000 67% owner-occupiers. Proximity to Lavarack Barracks, James Cook University and Townsville University Hospital creates a resilient, diversified demand base for rental housing. Wulguru, Townsville $642,000 70% owner-occupiers. Positioned on the ring road with easy access to both Lavarack Barracks and the CBD. The high proportion of owner-occupiers signals neighbourhood quality and long-term capital stability. Mount Morgan, Rockhampton $353,000 Yield 5.23%. Exceptional cash-flow-positive fundamentals with 75% owner-occupiers. Tight supply and community-scale demand underpin rental performance. Norville, Bundaberg $638,000 69% owner-occupiers. Strong rental yields with value-add potential. Bundaberg’s diversified Crow’s Nest $692,000 Within an hour of Toowoomba and the South East Queensland growth corridor. Sub-$700,000 access driven by the ongoing decentralisation of Brisbane’s population and employment base.
NEW SOUTH WALES
Suburb Median price Key fundamentals Ashmont, Wagga Wagga $505,000 Yield 4.24%. Strong employment base anchored by Kapooka and the Riverina Medical and Dental Group. Compelling sub-$550,000 regional entry with high rental pressure. Oxley Vale, Tamworth $603,000 Sustained rental pressure in a regional centre with a diversified economy spanning healthcare, education, agriculture and manufacturing. Muswellbrook $680,000 Yield-focused and highly affordable by NSW standards. The Hunter Valley’s energy transition continues to drive infrastructure investment and broaden the economic base. West Albury $648,000 Yield 4.03%, 70% owner-occupiers. Part of the Albury-Wodonga corridor – one of the highest per-capita infrastructure spend regional centres in the country, with very low supply levels. Hamilton Valley, Albury $659,000 Yield 3.9%, 70% owner-occupiers. Shares Albury’s fundamentals – tight supply, strong public sector employment, high owner-occupier sentiment – with more contemporary housing stock.
VICTORIA
Suburb Median price Key fundamentals Armstrong Creek, Geelong $686,000 Long-term structural growth in a satellite city with genuine independence from Melbourne, backed by expanding healthcare, education and advanced manufacturing sectors. Newcomb, Geelong $639,000 Lifestyle appeal, proximity to the Geelong CBD and waterfront, and direct access to Melbourne. Geelong’s growth as a decentralised alternative to Melbourne continues to drive long-term demand. Broadmeadows, Melbourne $674,000 Solid yield underpinned by Melbourne’s ongoing population growth and proximity to the northern employment corridor. A long-term capital growth story in Australia’s most resilient property market. Fraser Rise, Melbourne $685,000 Positioned in Melbourne’s western growth corridor with solid yields and structural tailwinds of population growth and sustained infrastructure investment. Morwell, Latrobe Valley $441,000 Yield 4.51%. Exceptional affordability and yield in a regional centre undergoing economic transition, offering real cash flow alongside long-term repositioning prospects.
SOUTH AUSTRALIA
Suburb Median price Key fundamentals Eyre, Adelaide $641,000 Yield 4.29%, 81% owner-occupiers. Capital city access with strong yield in a high-owner-occupier suburb – a rare combination where investor resale profitability has been near-universal. Hillier, Adelaide $639,000 93% owner-occupiers – an extraordinary figure signalling entrenched community stability and very low speculative activity. Low supply and building rental pressure point to sustained demand. Callington $689,000 85% owner-occupiers. Semi-rural lifestyle characteristics within reach of the Adelaide metropolitan area, with price point and rental pressure converging. Mount Gambier $604,000 Very low supply levels and declining days on market – a combination that consistently precedes price movement. South Australia’s second-largest city, anchored by forestry, agriculture and tourism. Mannum $620,000 Very tight rental supply in a Murray River location with genuine lifestyle appeal. Constrained stock and consistent demand make it a distinctive regional proposition.
WESTERN AUSTRALIA
Suburb Median price Key fundamentals Medina, Perth $639,000 Yield 4.0%, 67% owner-occupiers. Capital city exposure at a price point still accessible to everyday investors, in a state where investor lending is at its highest share since 2010. Armadale, Perth $678,000 Yield 4.16%. On Perth’s southern growth corridor with strong infrastructure investment and sustained rental demand. Affordability relative to inner-city Perth continues to attract both renters and owner-occupiers. Collie, Bunbury region $566,000 Yield 4.85%, 80% owner-occupiers. A lifestyle-driven regional location south of Bunbury with a yield profile that outperforms most capital city equivalents. Beachlands, Geraldton $579,000 Very tight rental and sales supply with strong underlying demand. Geraldton’s role as the Midwest’s primary regional centre – healthcare, education, mining services, port – provides genuine economic diversification. Spalding, Geraldton $504,000 Tight rental supply and sustained rental pressure at an entry price that delivers real cash-flow potential. A market dynamic that reflects genuine undersupply rather than speculative demand.
NORTHERN TERRITORY
Suburb Median price Key fundamentals Alawa, Darwin $687,000 Yield 4.52%. Residents are 64% owner-occupiers. An established northern suburb within 10km of the Darwin CBD. Has ongoing government infrastructure investment including the underground power rollout underway now. Anula, Darwin $679,000 Yield 4.79%. Residents are 73% owner-occupiers A tightly held family suburb with very low vacancy rates, strong school catchments and consistent rental demand underpinned by proximity to Darwin’s major employment corridors. Moil, Darwin $680,000 Yield 4.56%. Residents are 62% owner-occupiers A quiet family-oriented suburb close to Darwin Airport, Darwin International Airport and CBD, with older-style homes on generous blocks that offer genuine opportunity at sub-$700,000. Wagaman, Darwin $633,000 Yield 4.93%. Residents are 60% owner-occupiers Very tight supply, while the suburb benefits from government-funded underground power infrastructure — a direct uplift to liveability and long-term asset quality. Malak, Darwin $631,000 Yield 4.84%. Residents are 59% owner-occupiers Supply is constrained. There’s active redevelopment interest driven by demand from essential workers in Darwin’s health and education sectors.
Related Articles
