Is Queensland’s property market finally outpacing NSW?
Queensland has become the state to watch when it comes to property, following its strong response to the COVID crisis an...
While rental asking prices remained flat across Australian capital cities in the last quarter, Australian Property Monitors (APM) believes market conditions will only get better for property investors as yields continue to edge higher across the nation.
“The prospect of steady to rising yields and a subdued market in the shorter-term, solid capital growth opportunities appear to continue to exist for investors in most markets,” Dr Andrew Wilson, senior economist at APM, said.
“The good news for renters is the flat growth in rental prices will continue in most capital cities, as an expected increase in buyer activity will take the pressure off the rental market by decreasing competition for available rental properties and motivating investors to re-enter the market,” said Dr Wilson.
Dr Wilson made the comments following the release of APM’s Rental Price Series Quarterly Report for the June quarter, which found median asking rents for houses fell by 0.2 per cent across Australian capital cities, while unit rental prices rose by 0.3 per cent in the quarter.
What might get investors’ heart rates beating faster are the yield trends, which for the most part are holding or heading higher. Gross rental yields for units are significantly higher than houses, with each capital city apart from Adelaide and Melbourne recording yields above 5 per cent. Canberra had the highest yield at 5.53 per cent, while Brisbane posted the sharpest increase, up from 1.92 per cent in the March quarter to 5.02 per cent in the three months to June.
Hobart remains the highest yielding market for houses, according to APM, registering a 5.07 per cent yield for the June quarter. Most other capital cities posted yields above 4 per cent, excluding Melbourne at 3.73 per cent.