Queensland’s investor hot spots revealed – and high performing places they aren’t looking yet
INVESTORS looking to sink their funds into Queensland property have focused on location and capital growth over cash flow, with the state’s highest rental yield suburbs not making the top 10 investor searches.
Nine of the 10 most searched for suburbs in the state by potential investors were in Brisbane, and one – Southport, which ranked eighth – was on the Gold Coast.
But none of them made the national top performing suburbs, which three outer-rim Brisbane suburbs did.
South Brisbane was the most popular investor search in realestate.com.au’s Investor Hotspots report, followed by West End and New Farm.
Indooroopilly and Toowong, where there has been some recent infrastructure upgrade activity centred around shopping centres, took out fourth and fifth place in the state, followed by Woolloongabba and Coorparoo.
Chermside and Fortitude Valley rounded off the top 10 most searched for suburbs by investors in Queensland.
But while REA data showed that from January to March this year, southern and outer-west suburbs saw the highest investor attention, that demand was clearly not being driven by rental yield – that prize was taken out by the unassuming southeast suburb of Kingston, where two-bedroom units were returning on average a rental yield of 8.9 per cent.
REA’s list of top performing suburbs in Australia saw three Queensland locations make the top 10 for incoming cash flow.
Kingston was ranked fourth nationally, two-bed units in Beenleigh were eighth with 8 per cent rental yield, and one-bedroom units in Stafford ranked ninth on 7.9 per cent.
On the list, the best rental yields in the country came off one-bedroom units in Ultimo, NSW (12.5 per cent), Carlton (9.1 per cent) and Clayton (9.1 per cent) in Victoria.
Anthony John Group chief executive Shane Bulloch said South Brisbane was going off because of its premium location on the river.
But he said it also had green spaces, educational facilities and employment opportunities, which made it “an investor’s dream”.
“You don’t require a car if you live in South Brisbane,” he said.
“Strong demand means strong capital growth and that’s what investors want to see. The location of South Brisbane attracts a high number of renters that want close proximity to the city, which makes investors confident that properties here will generate a strong return on investment,” he said.
At the South Brisbane the stage one of Southpoint – Emporium Apartments – has sold out, and the limited edition three-bedroom Emporium Residences were on the market from $1.75 million.
The final stage of one-, two-, and three-bedroom apartments – priced from $389,000 – was “coming soon”.
Early works have already begun on the office and retail segment of the development, with construction of the balance of the building beginning midyear.
Realestate.com.au Queensland sales manager Marini Peries said it was helpful to see the suburbs that investors had their eyes on.
“Knowing where these areas are can give sellers confidence once they put their property on the market as it highlights that there will be a high number of investors searching for property in their suburb,” she said.
REA had a dedicated Invest site showing annual growth and incoming cash flow on all Australian suburbs, she said, and investors could now also search via a map function where a click showed median price and rent, rental yield and demand.
By Sophie Foster via news.com.au