Brisbane’s units trump investments in Melbourne and Sydney, according to research released today.
When looking at one, two and three bedroom units, Brisbane consistently outperformed the other capitals in terms of gross rental yield in 2011 September quarter, found PRDnationwide.
One-bedroom Brisbane units had impressive yields of 6.4 per cent in some cases, according to PRDnationwide analyst Robert Matta.
“The evidence suggests Brisbane offers a superior value proposition to that of Sydney and Melbourne, with attractive yields and more affordably priced product on the market enabling a greater pool of investors with varying financial capacities to become active in the property market,” Mr Matta said.
A strong level of demand for city accommodation and low vacancy rates continue to underpin increasing rents in the market, Mr Matta said.
“Both factors have influenced the current yields that are being achieved by investors active in the Brisbane unit market,” he said.
Brisbane, in comparison to other capital cities, experienced one of the greatest decreases in property values post-2010, opening up opportunities for first time buyers.
“Whilst current market fundamentals present several sound opportunities for renters to perhaps enter the property market, savvy investors are even more so looking to capitalise on the very same opportunities,” he said.
Investors who are concerned about the long-term growth, rather than the cash flow, are those who are currently being proactive in the market.
“Identifying distressed developer stock, mortgagee sales or simply well priced units isn’t too hard to come by in the current market,” he said.
Purchasing in these circumstances is one way he advised that investors could ensure the best return on their investment.