While country Queensland may be bringing in slightly higher rental returns than the big city, Brisbane’s capital growth remain unmatched.
Investors’ appetite for properties in South-East Queensland shows no signs of abating. With property values for houses growing 14.6% year-on-year and 5.57% in the three months to August, Brisbane beat all other capital cities by some margin.
“We’ve seen strong demand in most sectors, with capital growth in some areas up to 20%,” says Gavin Hulcombe, director, Herron Todd White, Brisbane.
Second hand CBD units have performed especially strongly, with “substantial” capital growth seen over the last six months.
Rental returns have also reached a healthy 4.27%, while country QLD has achieved an even more impressive 4.42%. It’s Brisbane and its’ surrounding suburbs that remain the major draw to investors however, something Hulcombe puts down to its good fundamentals.
“We’ve got strong inter-state migration, rental levels have been increasing rapidly, and an increase in investment yields has seen investors come back into the market over the last six months,” he says.
“The high rentals have probably started to force a few renters out of the rental market and into the first home buyer market so that’s certainly fuelled the bottom end of the market. Anything that’s affordable is particularly strong at the moment, sub-$450,000.”
Hulcombe adds that it’s a little bit hard to gauge the impact of the most recent interest rate rise, and that it will probably take another month or two till it gets flushed out of the market.
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