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.
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 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."