South-east Queensland is experiencing a property investment boom, driven by a surge in infrastructure projects and rental yields nearly double those in Sydney. The region, particularly the “golden triangle” between Logan, Ipswich, and Beenleigh, offers some of the last affordable properties where homes are priced under $700,000 and units rent for $350 a week. These factors have contributed to a 25% increase in investor activity over the past year.
This rise follows a two-year slump caused by the 2022 Queensland land tax reforms and rising interest rates, which had initially deterred many investors. The reforms, which were later scrapped, would have assessed land tax on an investor’s entire Australian holdings rather than just those in Queensland.
As Queensland prepares for the 2032 Olympics, interstate migration and major infrastructure investments are attracting investors, especially from Sydney. Domain’s latest Rent Report reveals Logan City units have the highest rental yield in south-east Queensland at 7.66%, with rents increasing 20% to $360 per week over the past year. Eagleby units come second with a yield of 6.72%, and rents rising 16.7% to $420 per week. Brisbane’s average unit rental yield stands at 5.5%, compared to Sydney’s 4.67% and the national average of 5.1%.
Sam Gordon from Australian Property Scout notes a significant increase in investor activity in Brisbane, driven by rising rents and infrastructure growth. Investors are focusing on properties around $700,000, with Logan and Ipswich seeing increased interest due to their affordability and high rental yields.
Rob Ford, Founder and Director of Zevesto, confirms a surge in investor activity in the golden triangle, though competition from owner-occupiers is fierce. Properties with granny flats are particularly sought after. He highlights that rental renewals in the area have risen by 18% over the past year, indicating a shortage of rentals and high demand from interstate migrants.
Ford also points out that while stock levels are currently 20% below the long-term average, demand remains strong. He suggests Eagleby as a prime investment spot for those with a budget of $500,000.
Inner-city Brisbane continues to attract investors, with units in Brisbane City yielding 5.97% and rents increasing by 22.8% to $700 per week. Ray White New Farm Principal Haesley Cush notes that Brisbane’s affordability and potential for capital uplift make it appealing for investors. Suburbs like Nundah, Chermside, and Woolloongabba are highlighted as investment hotspots due to their proximity to the city and infrastructure.
Commercial investment is also on the rise, with Mish Daniel of Revolve Commercial reporting a 50% increase in investor activity over the past few years. She attributes this to Brisbane’s relative affordability and growth potential, particularly within the larger golden triangle that includes the Gold Coast, Toowoomba, and the Sunshine Coast.
Overall, south-east Queensland, with its strong rental yields, ongoing infrastructure developments, and affordable property prices, is becoming a prime destination for property investors in 2024.
Resource: Domain