Yields Rise Across Capital Cities
The return investors can expect on properties across Australia’s major cities is rising, with rising rentals creating improvements in some cities and falling prices helping in others. Rental yields increased in all capital cities bar Brisbane over the past three months, data from the latest Domain Rental Report shows. With yields still lowest in Sydney and Melbourne, investors are increasingly looking to spend elsewhere, says Rich Harvey of property buyer. “You would only ever consider going to that low a yield if you knew there was going to be a strong capital gain,” Harvey says. “We’re seeing a lot of investors now interested in regional areas or Brisbane.” Units in Canberra, with a gross yield of 6.14%, offered the best return in the March Quarter, followed by Darwin with 6.07%. Hobart offered the best yield for houses at 5.13%, helped by the lowest vacancy rate in capital city Australia. “For investors, Hobart is a double win – it not only has the highest yield, but it’s seen significant capital growth,” says Domain’s Nicola Powell.
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