Toowoomba Chronicle, Toowoomba
June 22, 2024
by Sophie Foster
Experts have run the numbers across every suburb in Australia to find those that tick every box for investors, with some surprising results in the top 10. A small town where half the homes are under $350,000 and a suburb with a ridiculous 0.1 per cent vacancy rate were among five areas in Queensland, four in Western Australia and one in South Australia that made the hit list for investors.
Depreciation experts Washington Brown and property analysis firm Hotspotting sought out the best areas for robust economic conditions, affordable locations and an array of conditions including “the Holy Grail of property investment – strong capital growth and rising yields”.
Washington Brown director Tyron Hyde said despite major shifts in the market, there were places that still ticked every box for investors who were also able to claim thousands in depreciation benefits. Dalby The Queensland town of Dalby, west of Brisbane, which has a population of just over 12,000, was among the 10 most outstanding places in the country for property investment numbers thanks to its thriving agriculture base and surrounding gas boom.
”With vacancies near zero, rents have risen 24 per cent in the past 12 months, with the median rental yield increasing from 6.6 per cent to 7.2 per cent in the past three months,” Mr Hyde said.
“Property values have also soared, with the median house price up 15 per cent to $350,000 over the past year.”
Hotspotting director Terry Ryder said the vacancy rate in Dalby had dropped to just 0.1 per cent, with the area being a centre for natural gas, coal, and power generation in the region, with “a plethora of employment opportunities for residents”.
Bowen Hills & Woodridge Two of the top 10 were in Greater Brisbane – units in inner city suburb Bowen Hills and southern suburb Woodridge.
Rents in both places have jumped 15 per cent in the past year, with the Bowen Hills vacancy rate at 1.2 per cent and Woodridge even tighter at 0.6 per cent.
Rental yields were at 6.6 per cent and 7.1 per cent respectively in the past three months. Unit prices grew 7.1 per cent to $455,000 in Bowen Hills, while in Woodridge they were up 24 per cent to $298,000.
“There is growing demand for properties, especially apartments, in Bowen Hills and surrounds due to its close proximity to infrastructure projects and its position in one of the top 30 most liveable cities in the world,” Mr Hyde said.
“With its population expected to continue growing, the unit market is expanding to accommodate its new residents.”
Mr Ryder said: “Woodridge in the Logan council area of Greater Brisbane is well-located and well connected and is benefiting from its affordable price points for homebuyers and investors.”
Yorkeys Knob The vacancy rate for units in the Cairns beachside suburb dropped from 1 per cent to 0.7 per cent in just three months, with rents up 11 per cent in the past year, rental yield now 6.5 per cent and prices rising 15 per cent to $340,000.
“Yorkeys Knob has long been a popular suburb for tenants with some 50 per cent of its residents being renters,” Mr Ryder said.
“There are also more units and townhouses than houses in the suburb, which ensures that investors are purchasing dwellings that are the most in demand by the people who want to live there.”
Bundaberg South The median house price here has grown 6 per cent to just $370,000 in the past year, but rents were up 20 per cent, Mr Ryder said, lifting rental yield to 7 per cent off a 0.8 per cent vacancy rate.
“Bundaberg has a diverse economy that includes three hospitals as well as being home to higher education campuses, including the Central Queensland University,” he said.
“Bundaberg’s population of more than 100,000 is also expected to grow by some 15 per cent in the next two decades.”
The other towns to make the national top 10 included Murray Bridge in South Australia, and Armadale, Balga, Carey Park, and Geraldton in Western Australia.
