Rentals a chal­lenge

Lit­tle growth over year but af­ford­able mar­ket lures south­ern buy­ers

Daily Mercury - - REAL ESTATE -

ONCE again Queens­land’s house rental yields are gen­er­ally higher than New South Wales and Vic­to­ria, mak­ing our af­ford­able mar­ket highly at­trac­tive to south­ern in­vestors.

How­ever, hav­ing said that, there has been very lit­tle growth over the past 12 months and some ar­eas have de­liv­ered smaller yields com­pared with this time last year.

This is con­cern­ing and is a re­flec­tion of the fragility of the rental mar­ket in many ar­eas through­out the state.

Bris­bane LGA yields have come down from 3.6% last year to 3.3% in June this year.

Weak rental mar­kets in much of re­gional Queens­land, where va­can­cies are high, present chal­leng­ing con­di­tions and the REIQ is con­cerned in­vestors may opt out of prop­erty.

In Queens­land, 34% of us rent and this pop­u­la­tion is heav­ily re­liant on the pri­vate rental mar­ket.

As would be ex­pected, re­gional ar­eas re­liant on the re­sources sec­tor gen­er­ally de­liv­ered higher yields than other parts of the state. Rock­hamp­ton and Bund­aberg of­fer gross yields of 5.4% and 5.3%, the high­est of this group of mar­kets.

Look­ing at tourism towns, the Cas­sowary Coast and Whit­sun­day of­fer 7.5% and 6% yields on houses.

Cairns unit in­vestors are re­ceiv­ing the high­est yields in the state, of 6.8%, com­pared with 7.5% a year ago. Bund­aberg and Lo­gan in­vestors are re­ceiv­ing 6% yields on their rental prop­er­ties.

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