Inner city yields up

WHILE Real Estate Institute of Queensland (REIQ) December quarter sales figures show that regional areas have had the highest yields for residential property, several Brisbane suburbs showed significant growth in unit sales prices.

The top three postcodes for gross unit yields were in Cairns but fourth spot was taken by Brisbane City and Spring Hill at 6.3 per cent, with the top spot of Port Douglas at 6.9 per cent.

Chairman Peter McGrath says dozens of areas across the state recorded healthy yields of more than 5 per cent.

"With the lack of returns in fixed deposits and other investment options, real estate is continuing to provide good yields and the opportunity to benefit from capital growth over the long term," says McGrath.

He says the inner city areas benefited from their location, the units and townhouses available, as well as the type of tenants they can attract, including students.

The suburbs of East Brisbane, Kangaroo Point, Kingston and Woodridge held the fifth highest unit yields of 6 per cent, with Slacks Creek and Springwood coming in at 5.7 per cent. The suburbs of Mount Gravatt East, Nundah and Ashgrove also performed well with a return of 5.2 per cent.

In the housing market the only Brisbane suburbs to push the 5 per cent gross yield mark were from the Logan City Council – Kingston, Logan Central and Woodridge in third place at 5.7 per cent, as well as Loganlea and Meadowbrook at 5 per cent. The top spot went to Oakey in Toowoomba at 6.4 per cent.