Yields rise as prices fall
REDUCED demand for residential property on the Gold Coast means there are currently some particularly good deals being made, especially for investors. Prices for many units are the lowest they have been for many years, and in some cases investors are picking up properties that are likely to be cash-flow positive from the outset.
Affordability is continuing to drive the best residential rental yields in our region, with the best-performing postcodes all having affordable prop- erty price tags in common. The REIQ yield report found the postcode of 4212 – which includes Helensvale and Hope Island – to have the best gross rental yield for houses, of 5.7 per cent. This was based on a weighed median house prices of $460,000 and a weighted median weekly rent of $502.
The second-best-performing postcode for houses was 4215 – which includes Labrador and South- port – which recorded a yield of 5.1 per cent on the back of a median house price of $397,500 and median weekly rent of $390. For units, the top postcode was 4210 – which includes Oxenford and Maudsland – which posted an impressive gross yield of 6.6 per cent. Its median unit and townhouse pricewas $245,000 and median weekly rent was $313.
The second-top postcode for units was 4211 – which includes Carrara, Nerang and Pacific Pines. It posted a yield of 5.8 per cent courtesy of a median unit price of $300,000 and median weekly rent of $332. In Surfers Paradise, in particular, unit prices have reduced over recent months, which is likely to continue to improve the yield cur- rently being achieved.
The gross rental unit yield for Surfers Paradise for the June quarter was 4.6 per cent. Its median unit price was $408,500 and median weekly rent was $358. This yield is likely to improve again once data is available for the September quarter.
John Newlands is the REIQ Gold Coast zone chairman