Brisbane suburbs near CBD boast above 5.6% yields
Latest insights from OpenAgent.com.au found that suburbs near the Brisbane city centre boast rental yields over 5.6 per cent.
The Logan suburbs with the highest rental yields for houses are Logan Central (6.49 per cent), Kingston (6.19 per cent) and Woodridge (6.16 per cent).
Suburbs like Kingston and Woodridge are under a half-hour drive to Brisbane, and suburbs like Eagleby and Beenleigh are just over a half-hour drive to the Gold Coast.
According to OpenAgent’s data analyst Carson Teh, the Logan region is expected to grow significantly this 2020, driven by the increase in population as well as several enhancement projects.
“The Queensland government expects the population in Logan to grow from 326,615 people in 2018 to 432,000 by 2031,” said Mr Teh.
“The Logan Enhancement Project has been backed by the Queensland government, making Logan a more attractive place for businesses to set up headquarters, and leading to a strengthened economy and increased population.”
Damian Piotto, real estate agent from Ray White in Marsden, explained that Logan is ideal for investors, particularly those from interstate.
“Entry-level housing is always appealing, especially to interstate investors when they compare local house prices, NSW in particular, and see significant value long term,” Mr Piotto highlighted.
“Rental returns are always going to be strong with the area located right in the middle of Brisbane and the Gold Coast, great public and private schooling, and the blue-collar industry within a 10-minute drive of these areas.
“With the local and state government continuing to improve amenities, new water parks, Logan Metro Sports Centre and the Logan Entertainment Centre, it’s easy to see why families get a lot of bang for their buck so to speak.”
While rental yields are above average, vacancy rates across the region are not as optimal.
Ideally, a vacancy rate below 2 per cent would indicate that landlords can find tenants more easily and have more bargaining power. However, the suburbs of Bethania, Slacks Creek, Crestmead and Marsden recorded 2.40 per cent, 2.50 per cent, 2.90 per cent and 2.90 per cent, respectively.
Still, Mr Teh considers these numbers as “decent” and, therefore, not a cause for alarm.
Investors that are concerned about finding a tenant can look for listed properties that are already rented out to satisfied, long-term tenants.
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