They were the only two towns in the northern region to make the list this year.

Last year respected Queensland-based real estate analyst, Terry Ryder, also named Glen Innes and Moree on the list.

Gunnedah is understood to have made this list again this year as a result of the obvious mining boom.

Each year Mr Ryder selects a list of the top 10 "cheapies with prospects" based on low property prices, strong rental returns and the locality's potential for growth.

This year while there is a list of the top 10 when announcing the list Mr Ryder said if he had unlimited funds and lots of time on his hands, he would have signed pre-Christmas contracts in the following 25 key locations: Gladstone, Toowoomba, Emerald, Mackay, Brisbane, Tamworth, Gunnedah, Muswellbrook, Newcastle, Sydney, Broken Hill, Bendigo, Ballarat, Warrnambool, Portland, Adelaide, Whyalla, Port Augusta, Ardrossan, Ceduna, Albany, Bunbury, Perth, Geraldton and Kununurra.

"There are plenty of other good options but I've decided to keep the list to 25," he said.

"They're all places with affordable options and great growth prospects."

Gunnedah mayor Adam Marshall said he wasn't surprised the Shire was on the list.

"It is a well-respected report so it certainly does no harm for Gunnedah to be mentioned there," Cr Marshall said.

"Gunnedah has seen a massive amount of investment in new and existing homes in the past 12 to 18 months which has forced prices up at the higher end of the property market and as a result of that there has been a lot of activity at the lower end of the market for rentals."

Cr Marshall said such a boom in market was positive but expressed concerns if it continued to grow at such a rapid rate it could become a double edged sword.

"That sort of boom could eventually escalate to have a negative impact on people who have lived and grown up here and want to stay because they could be pushed out of being able to buy here," he said.

"We don't want to see a situation where this boom continues to escalate and prices increase to a point where local people are pushed out of their homes."

Last year Moree and Glen Innes made the top 10 list.

Mr Ryder said at the time he had chosen Glen Innes because of its location at the junction of the New England and Gwydir Highways, the quality and affordability of homes and the amount of new commercial and industrial development.