While the Brisbane property market remains subdued, pent-up demand for rental properties could see investors flock to the Queensland capital, according to PRDnationwide.
"Looking forward, investors capable of purchasing a well-placed property will begin to enjoy stronger yields,” said PRDnationwide research analyst Josh Brown.
According to PRDnationwide’s Brisbane Report, it is likely that Brisbane’s property market will remain stable at least for the remainder of 2011 with provisions for further gradual price corrections.
Brisbane had a slow year for property price growth in 2010, at 3.6 per cent, while sales activity dropped to its lowest level in a decade.
“The median house price is up $18,705 to reach $538,705,” said Mr Brown.
The cost of renting a three bedroom house in Brisbane has also increased three per cent.
“This figure is in lieu of the low level of active buyers in the housing market and the high number of displaced residents following the January floods,” Mr Brown said.
The volume of house sales was down 28 per cent.
“Settled transactions over the most recent period have softened considerably from the incentive driven half year ending December 2009 to register 6,456 sales.”
The report found that unit sales were also down considerably.
“Settled unit transactions have tightened significantly over the most recent December half year period to register 2,535, equating to a softening of 39 per cent (1,625 sales),” said Mr Brown.
“This not only represents the lowest level of sales activity in over ten years, but also 1,345 transactions below the ten year average of 3,880 sales per six month period.”