The 20 suburbs about to explode with investor demand

Nine of the top 20 spots in Australia for property investors are in NSW, including eight in Sydney. (Source: Getty) (magann via Getty Images)

New South Wales has dominated the list of the best places for property investors seeking to make the most of low interest rates, a new report reveals.

Out of the top 20, NSW took nine spots, including eight in Sydney.

The inner western suburb of Five Dock was the highest-ranking NSW location, at number 3. It was followed by Sydney suburbs Rozelle, Parramatta, Crows Nest, Waterloo, North Sydney, Pyrmont and Concord, along with regional tourist hotspot Coffs Harbour.

However, the Brisbane suburb of Woolloongabba and the Gold Coast's Burleigh Heads took out the top two spots. The Sunshine State also had another three spots in the top 20.

• Read more: House prices are boiling hot: Is it a bubble ready to burst?

• Read more: 5 golden rules for property investment success

• Read more: State by state: Aussie school zones that pushed house prices up 40%

Victoria took out three spots - all in the top 10: North Melbourne, Preston and South Melbourne - while Western Australia took out the remaining spots, with Ellenbrook and Claremont coming in at numbers 6 and 16, respectively.

ME commissioned the new research from Ethos Urban, a national planning and urban economics consultancy company.

The Gold Coast suburb of Burleigh Heads came in at number two. (Source: Getty) (SaintM Photos via Getty Images)

The study identified the best suburbs to invest in by including criteria that both investors and renters would look for, including:

• Lifestyle appeal such as cafes and shops

• Average rental prices

• Median house prices

• Recent population growth

Australia’s top 20 suburbs to invest in:

1. Woolloongabba, QLD

2. Burleigh Heads, QLD

3. Five Dock, NSW

4. North Melbourne, VIC

5. Rozelle, NSW

6. Ellenbrook, WA

7. Parramatta, NSW

8. Crows Nest, NSW

9. Preston, VIC

10. South Melbourne, VIC

11. Yanchep, WA

12. Waterloo, NSW

13. Coffs Harbour, NSW

14. North Sydney, NSW

15. Pyrmont, NSW

16. Claremont, WA

17. Mermaid Beach, QLD

18. Miami, QLD

19. Concord, NSW

20. Fairfield, QLD

Transport key to a suburb's attraction for investors

ME’s consulting demographer, Chris McNeil from Ethos Urban, said that despite how different many of the areas in the top 20 were, they shared a common theme, which was planned new transport infrastructure that would create new opportunities.

“Woolloongabba, for example, is already serviced by two train stations and the new Cross City Rail Project will provide a new line running directly under the suburb, increasing connectivity and changing the way people use the area,” he said.

“This will only be bolstered in the coming years as Brisbane prepares its infrastructure for the 2032 Olympics.”

Australian property has had a furious year, climbing in value by up to 27 per cent. Ongoing record-low interest rates sparked the buying frenzy but experts are predicting prices will cool in 2022.

“While the ACT, South Australia, Tasmania and Northern Territory had no entries in the top 20, this doesn’t suggest they are lacking in favourable investment options,” McNeill said.

"Based on the statistical approach and methodology applied, it is simply that the most impactful transport projects presently being undertaken are in New South Wales, Victoria, Queensland and Western Australia."

Follow Yahoo Finance on Facebook, LinkedIn, Instagram and Twitter, and subscribe to the free Fully Briefed daily newsletter.