For Australians who want to get rich by buying property, 2025 looks like a good year to do so. Sydney is still in the news, but more people are looking to regional areas of New South Wales. It’s easy to see why. The lifestyle, cost of living, and potential for expansion in the future are making the region more and more attractive.
Choosing the top suburbs to invest in NSW is no longer just about chasing quick capital gains. Investors want locations with strong fundamentals: population growth, solid rental demand, affordability, and infrastructure projects that will secure future returns.
The regional housing market in NSW held firm through 2024, with property prices continuing to rise despite the pressure of higher borrowing costs. Now, with talk of interest rates easing, many analysts believe 2025 could mark a major shift. In this piece, we’ll unpack how the market performed last year, what the outlook is for the months ahead, and which suburbs could prove the smartest picks for investors.
Top Suburbs to Invest in NSW: How the Market Performed in 2024
The last year demonstrated how regional NSW is capable of holding its own even when things are tough. CoreLogic says that home values in regional NSW went up by a percentage of 3.2 in 2024. That was smaller compared to the national average of 6% across all regional markets, but it still demonstrated strength.
Growth has slowed down since the years of the property boom. But the future story is excellent. Prices have gone up roughly 50% since the pandemic started and have doubled in the last ten years. Even though short-term development is slow, smart investors still looking for the best areas to invest in in New South Wales because of this long-term increasing trend.
People were still interested in lifestyle-driven places like Byron Bay as well as the Central Coast. Inland centers such as Orange and Tamworth additionally performed well since their economies were booming and things were very cheap. On the other hand, rising borrowing costs and a lack of homes slowed down activity in areas with higher prices.
Even with these problems, the basics are still strong. Regional NSW is cheaper than subway Sydney, yet there is a lot of demand because of migration, lifestyle attraction, and a lack of housing.
Top Suburbs to Invest in NSW: Property Market Forecast for 2025
Experts think that 2025 will be an anniversary of moderate but good growth. It’s likely that the central bank of Australia will lower interest rates possibly twice this year. Lower interest rates will make purchasers feel more confident and make it easier for investors to buy.
The 2025 Property Forecast Report from Propertyology says that key regional centers in NSW, such as Newcastle and Wollongong, Lake Macquarie, as well as the Shoalhaven, would have moderate development. These areas are good for working people because they are close to Sydney but still have lifestyle benefits.
The housing market will remain under the strain of supply shortages. Last year, building approvals across New South Wales fell by 10%, deepening the gap between demand and the number of new homes being built. As a result, prices are tipped to rise further, particularly in high-demand suburbs.
Another important factor is population growth. There is a lot of migration to other parts of the country, with families, pensioners, and young people moving to places outside of Sydney that are cheaper and better for their lifestyles. Because of this, the demand for homes in regional centers will keep going up.
In 2025, the best areas to invest in in New South Wales will probably be those that are affordable and have a good lifestyle, services, and high demand.
Top Suburbs to Invest in NSW: Best Picks for 2025
Now let’s explore the towns as well as suburbs that stand out in 2025. These locations have been chosen not only for past growth but also for their future potential, making them the top suburbs to invest in NSW for smart buyers.
Top Suburbs to Invest in NSW: Belmont
Belmont is still a great spot to live and invest, plus it’s close to Lake Macquarie. The area is unique because it has beautiful views of the water, lots of outdoor activities, and is close to Newcastle. Families and retirees like the relaxed atmosphere, and investors are interested in the continuous rise in property values.
Belmont’s housing market shows an average property price of roughly $940,000. Prices grew by 4.4% in the past 12 months, though this is slower compared to the suburb’s typical 10% yearly growth. High-end waterfront homes remain costly, but the more budget-friendly suburban options deliver strong rental yields.
Belmont is a great place to invest in NSW since it has a good balance of lifestyle and accessibility.
Top Suburbs to Invest in NSW: Kotara
Kotara, located in Newcastle, is a highly desirable suburb for families thanks to its convenient amenities. Its proximity to Westfield Kotara, schools, and reliable transport options makes it appealing to both homeowners and renters.
The average price of a house is about $920,000. Prices have gone up by 2.1% in the past year, while the future trends show that they go up about 8.5% every year. Kotara is intriguing to a lot of buyers since it has train lines that connect it to Greater Newcastle, as well as Lake Macquarie, and Sydney.
Kotara is a suburb in New South Wales that investors should consider since it has a lot of demand, growth, and convenience.
Top Suburbs to Invest in NSW: Orange
Orange ranks as one of the best-performing inland hubs. Orange is known for its wines, cuisine culture, and developing economy. The population has grown quickly, and infrastructure has been steadily invested in.
The average price of a house is $690,000, while the average price of a unit is $454,000. This makes them cheaper than other centers. Property values have gone up by 100% in the last ten years. Orange is in a good place to grow even more because the government is still putting money into housing and transportation.
Orange is a great place for investors to put their money in NSW since it is affordable and has the potential for long-term growth.
Top Suburbs to Invest in NSW: Inverell
Investors are quickly becoming interested in Inverell, which is on the Northern Tablelands. It is known as the “Sapphire City” since it is affordable and has an increasing number of people and business.
The median price of a home is under $380,000, which makes it some of the most reasonable possibilities. Inverell has a lot of rental interest and development potential, even though its prices are low. It has 12,000 people, which is enough to support a local hospital, big stores, and direct transportation links to places like Tamworth as well as Armidale.
Inverell is a great place for budget-conscious purchasers looking for the best areas to invest in NSW.
Top Suburbs to Invest in NSW: Mayfield
Mayfield, which is only six kilometers from Newcastle’s central business district, is now one of the best areas for buying property. Mayfield has become a lifestyle hub thanks to its stylish eateries, easy access to the Hunter’s River, and excellent transportation links.
The average price of a home is about $885,000, and the average price of a unit is $725,000. Growth has been great, with prices more than doubling in the last ten years. Demand stays high since it is cheaper than adjacent suburbs.
Mayfield is now one of the best suburbs to make investments in in New South Wales since it has both inner-city attractiveness and long-term potential.
Top Suburbs to Invest in NSW: Bathurst
Bathurst is primarily known for Mount Panorama, but it also has one of the most rapidly expanding property markets in the region. It has a good education system, thanks to Charles Sturt Institute, and its population is steadily growing.
The median price of a home is about $620,000, which makes it cheaper than homes in other regional centers. Bathurst is becoming one of the best suburbs to make investments in in New South Wales since it is always improving its infrastructure and the local economy is doing well.
Top Suburbs to Invest in NSW: Dubbo
Dubbo is one of the strongest regional hubs in inland NSW. It has a broad economy, a growing population, and important infrastructure. It is a center for health and education in the central west, which makes it a good place for individuals and professionals to live.
The median price of a home is about $520,000, and rental yields are high because there is always demand. Dubbo is one of the best suburbs in NSW to invest in since it is cheap and has good long-term growth potential.
Top Suburbs to Invest in NSW: Wagga Wagga
Wagga Wagga, the largest city in NSW that is not on the coast, has a strong real estate market with a good mix of demand and affordability. Its strong job market, which is based on the health, education, and defense industries, helps the population increase steadily.
The average price of a home is about $540,000, as well as rental yields are still good. Wagga Wagga has become one of the best areas to invest in in New South Wales since it has city-like amenities at a low cost.
Lifestyle and Infrastructure Boost the Top Suburbs to Invest in NSW
The things that make these towns and suburbs appealing go beyond the prices of homes. Long-term demand is being driven by lifestyle, infrastructure, and job possibilities.
Belmont has a beautiful lakeside setting, and Orange has a wine and cuisine culture that city inhabitants want. New highways, educational institutions, medical centers, and public transportation developments are making them even more appealing.
These lifestyle as well as infrastructure benefits make the best areas to make investments in NSW greater than simply places where people want to buy property. They are markets that increase over time.
Conclusion: Finding Value in the Top Suburbs to Invest in NSW
Investors are starting to see how attractive regional NSW is. With affordable prices, a great lifestyle, and promising growth prospects, these cities and nearby areas look set to perform well in 2025 and the years ahead.
The top suburbs to invest in across NSW offer something for every type of buyer, from scenic coastal spots like Belmont to bustling inland hubs such as Orange and Dubbo. The key is to focus on areas that combine solid fundamentals with a great lifestyle and strong infrastructure.
These suburbs are special because they can give you both quick profits and long-term gain when the property market changes.
FAQs: Top Suburbs to Invest in NSW
1. What makes the top suburbs to invest in NSW attractive for 2025?
Strong lifestyle appeal, affordability, infrastructure projects, and consistent population growth make these suburbs highly attractive.
2. Are the top suburbs to invest in NSW better than Sydney for property investment?
For many buyers, yes. Regional NSW offers affordability, rental demand, and long-term growth, making it competitive with Sydney’s market.
3. How do interest rates affect the top suburbs to invest in NSW?
Lower interest rates in 2025 are expected to boost affordability and drive more buyer demand in regional markets.
4. Which regional NSW towns are the most affordable for investors?
Inverell and Dubbo stand out as affordable markets with strong potential, making them excellent entry points.
5. Are rental yields strong in the top suburbs to invest in NSW?
Yes, rental demand remains strong across many regional centres thanks to growing populations and limited housing supply.
