Bar­gains are there, say in­dus­try ex­perts, as price de­clines drive up per­cent­age re­turns – but in­vestors are un­likely to wait for costs to rise while other costs such as body cor­po­rate and rates need to be fac­tored in

The Weekend Post - Real Estate - - PROPERTY OF THE WEEK -

are based on gross yields which don’t take into ac­count the costs of those prop­er­ties such as body cor­po­rate, rates and the cost of fi­nance,” he said.

“If you are look­ing to in­vest then it can take a lot more dig­ging to find the right prop­erty.”

Con­ced­ing Cairns had not ex­pe­ri­enced re­bounds of hous­ing stock val­ues com­pared to the other coastal cen­tres such as the Gold Coast or Sun­shine Coast, Mr Law­less said a na­tional up­take in tourism would ben­e­fit the mar­ket.

“You have to ex­pect the Cairns unit mar­ket is go­ing to be a ben­e­fi­ciary of higher oc­cu­pancy rates and more de­mand not just from tourists, but also from ser­vice work­ers who work in the tourism sec­tor,” he said.

He also pre­dicted the unit mar­ket could see fur­ther modest growth over the next 12 months. which has re­ally driven the yield pro­file of that mar­ket which I think is go­ing to be­come in­creas­ingly at­trac­tive for in­vestors,” he said.

LJ Hooker Edge Hill prin­ci­pal Ross Moller agreed.

“The bar­gains have been here for a while but no-one’s re­ally recog­nised it,” he said.

“If the press and pub­lic­ity on this grows the prices will go up and the re­turns will drop so my ad­vice is to get in now be­fore the re­turns drop.

“We do need unit prices to go up though be­cause un­til they go up we can’t build any­thing new.”

Quaid Real Es­tate owner Tom Quaid said apart­ments in the sub­urbs named in the re­port were en­try level prop­er­ties, but warned of hid­den costs which could af­fect re­turns.

“It is worth keep­ing in mind that these fig­ures UNITS in Cairns’ in­ner city sub­urbs have out­per­formed the na­tion in terms of rental yields.

Real es­tate re­search com­pany CoreLogic’s Best of the Best 2016 re­port, re­leased to­day, named Woree, Ma­nunda, Bun­ga­low, Manoora, Edge Hill, West Court, Ear­lville and Cairns North in a list of the top ten high­est gross rental yields for units in Aus­tralia.

The only other en­tries were the sub­urbs of El­iz­a­beth East and Da­voren Park in the South Aus­tralian city of Play­ford.

Woree units posted the high­est gross rental yields in the coun­try at 8.7 per cent.

But CoreLogic head of re­search Tim Law­less said the high yields were a byprod­uct of steep falls in unit val­ues.

“Rents haven’t fallen any­where near as much


Res­i­den­tial sales con­sul­tant Ru­pert Hay­den-Gilbert at City Wa­ter Apart­ments in Woree,

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