Rental Yields in Cairns Suburbs Jump 8.2%
If you are thinking about a Queensland real estate investment in a unit or townhouse, Cairns may be one destination well worth considering.
The local market, which experienced a subdued period in the wake of Cyclone Yasi in 2011, now appears to be on the road to recovery, with an 8.2 per cent rise in rental yields for units and townhouses recorded in the suburbs of Holloways Beach and Yorkeys Knob – showing the resilience of these communities in the wake of the natural disaster.
Elsewhere, Chinchilla – which is part of the Western Downs mining region – also saw an 8.2 per cent increase in rental yields for units, tying with the Cairns suburbs for the top spot in the state.
Here, investment in real estate in Queensland is driven by the resources boom – strong sales demand has been recorded and there is a high number of tenants seeking rental properties.
REIQ chair Anton Kardash explained the process involved in calculating gross rental yields, and how they should be considered in the relative picture of your long-term investment.
He explained: “Our gross rental yields are also classed as short-term yields as they reflect current pricings.
“However, if you hold your investment property over the long-term – which of course is always advisable – then the yield improves given rental income has increased but your original purchase price had stayed the same.”