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Best inflation-busting property investments in Queensland and each state

The best inflation busting property investments

What’s Happening

Regional Areas Outperforming Metros

“Regional areas are exhibiting higher rental yields than metropolitan areas,” says Mike Mortlock, Managing Director of MCG Quantity Surveyors. “For instance, West Pilbara in Western Australia has house yields of 9.85% and unit yields of 13.12%, driven by strong rental demand in the mining sector.”

Why It Matters

Yield Rates Worth Noting

Victoria’s Campaspe region reports house yields of 6.23% and 11.28% for units. These yields are influenced by affordable property prices and consistent rental demand. “Regions like Campaspe in Victoria are currently reflecting strong rental yields,” Mortlock notes.

By the Numbers

High Yields in Queensland and WA

Queensland’s Outback – South and Bowen Basin – North have high house yields at 9.07% and 8.88%, respectively and unit yields at 9.63%. These yields reflect tight rental markets supported by industries such as mining and agriculture.

Local Impact

Risks and Rewards of Regional Investments

However, it’s crucial for investors to consider the risks associated with these regions, particularly in terms of capital growth. While yields are high, regional areas can be more volatile and may not offer the same long-term capital growth potential as metropolitan areas. “It’s important to balance the attraction of high yields with the potential for capital growth,” Mortlock advises. “Investors should carefully consider the overall risk profile and their long-term investment strategy.”

Looking Ahead

Metropolitan Yields on the Rise

The comparative analysis further shows that yields in metropolitan areas tend to increase with distance from the CBD. For example, Brisbane’s house yields increase from 2.81% (0-10km) to 4.13% (20-30km) and unit yields from 4.92% to 5.55%. Perth exhibits a similar trend, with house yields rising from 3.38% to 4.70% and unit yields from 5.55% to 6.34%.

Final Thoughts

Diversification is Key

“Investors may find higher returns in suburbs further from the city centre,” Mortlock notes. “However, regional areas are currently exhibiting higher yields, particularly in resource-rich regions. This underscores the importance of a diversified investment strategy that considers both regional and metropolitan markets.”

Read more: Best inflation-busting property investments in Queensland and all states

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