Highest rental returns being South-east Queensland Suburbs
South-east Queensland’s highest yielding investment properties are no longer in Brisbane, but in the outer suburbs of Logan and Ipswich, new data shows. Suburbs like Bellbird Park and Bundamba in Ipswich, and Logan Central and Woodridge in Logan, have estimated rental yields of more than seven per cent for units, the latest Domain Rental Report has found. Brisbane has some of the highest rental yields in the country, averaging four to five per cent. However, in Logan Central, where the median rent for a unit is $260 a week, the estimated rental yield is a whopping 7.8 per cent. In nearby Woodridge, the yield for units is 7.1 per cent, with a median weekly rent of $255. “Also, Logan is affordable — you can buy a unit for under $175,000 or $180,000 and it’ll rent for $250, $260 a week — but importantly, the demand for rentals is there, it won’t sit there vacant.” A lot of interstate investors see value in Logan, given its proximity between Brisbane and the Gold Coast. “Interstate investors recognise that an area between two large cities that has a cheap price point and high yields is valuable and will keep growing,”. “They look at the prices, look at the yields and say, ‘It’s near a train station and I can drive to Brisbane in half an hour’, it’s got a lot of potential for growth.” Interstate investors also had a strong presence in another high-yielding suburb, Bellbird Park, on the eastern outskirts of Ipswich, where units are yielding an impressive 7.3 per cent. “They can get a three-bed unit for $215,000 and it will rent for $290 a week. You just don’t get that [return] for houses.” For houses, Leichhardt, Laidley and Riverview give some of the top returns, with yields of 5.8 and 5.7 per cent. The highest yielding inner-city suburb for unit rentals was Brisbane City, where the median weekly rent is $495, with a yield of 5.8 per cent. Ellen Grove, 20 kilometres south west of the CBD, was Brisbane’s highest yielding suburb for houses, with a yield of 5.5 per cent.
Top yielding suburbs for units:
Logan Central: 7.8% Bellbird Park: 7.3% Bundamba: 7.3% Woodridge: 7.1% Loganlea: 6.8%
Top yielding suburbs for houses:
Leichhardt: 5.8% Laidley: 5.8% Riverview: 5.7% Waterford West: 5.7% One Mile: 5.6%