Brisbane yields to draw investors

 

INVESTOR numbers seem to have fallen off a cliff in southern capitals but Brisbane was expected to buck the trend, according to latest expert analysis.

Rental yields in Brisbane – calculated as rent divided by price – have continued to outperform Sydney and Melbourne when it comes to both houses (4 per cent) and units (4.9 per cent), adding to its allure for investors, according to Nerida Conisbee, chief economist of the REA Group.

“One factor keeping yields high in Brisbane has been that prices haven’t risen quite as much as Sydney and Melbourne,” she said. “In 2018 we expect investors to continue to look at Brisbane favourably primarily because there seems to be rising rental demand and pricing is far more reasonable.”

She said it was likely that rental yields would rise this year.

“There are a few things driving this. The first is that prices are expected to remain relatively stable. A big factor driving yields downwards is rising prices and we don’t expect prices to rise as strongly in 2018.

Source: realestate.com.au