The 2013 Fast 50 report by Smart Property Investment has identified the top Australian locations geared for capital growth in 2013.

The Fast 50 hotspots were selected on a range of key metrics including population growth, demand for housing, income levels, employment, vacancy rates, previous capital growth and current gross rental yields.

The report’s contributors included leading property economist Dr Andrew Wilson; TV personality and property expert Margaret Lomas; property research specialist Louis Christopher; property columnist Terry Ryder; property mentor Helen Collier-Kogtevs; and Positive Real Estate chief executive and co-founder Sam Saggers.

The report states affordable pricing and solid, diverse industries will underpin the property markets of regional Victorian cities in 2013.

Bendigo was also highlighted for its strong local economy.

“Bendigo has most of the factors savvy investors should seek, including a multi-faceted economy, a growing population, efficient transport links to the capital, infrastructure development, multiple construction projects, an ambitious council and, importantly, affordable real estate,” said Hotspotting director Terry Ryder who contributed to the report.

Outside of the six Victorian locations identified, resource towns in Queensland and Western Australia made up a large proportion of the report.

Queensland accounted for 17 locations and Western Australia 11. New South Wales registered 11 locations, South Australia two, the Northern Territory two and Tasmania one. The Australian Capital Territory did not have any suburbs included in this year’s report.

Smart Property Investment editor Phillip Tarrant said the Fast 50 report provided investors with a valuable snapshot of which locations presented the sharpest investment prospects.

“This is a challenging market right now and if you’re looking to make a fast buck without doing your research there’s a good chance you’ll get your fingers burnt. That said, this report demonstrates that there are still lucrative opportunities out there for investors who are looking for solid capital growth potential – regardless of the broader market conditions,” he said.

Mr Tarrant said the 2013 report highlighted the growing significance of housing affordability and reinforced investment opportunities outside of capital city markets.

“Capital city markets have long been considered a safe and sensible investment option. However, a growing number of investors are turning to outer suburban markets because of their lower buy-in costs and tight vacancy rates,” Mr Tarrant said.

“Some of these locations allow investors to enter the market at a reasonable price with the option of adding further value through cost-effective renovations,'' he said.

''There are some very attractive opportunities out there right now which are driven by local economic factors, housing supply and demand and demographic shifts. Add to that a cash rate of just three per cent and there is great potential for investors who do their homework.”