The suburbs generating the highest rental yield in Townsville
WITH property prices low in Townsville and expected to increase in the next few years, industry leaders have been vocal that now is the time to buy.
The Adani Carmichael mine has been approved, the new Townsville Stadium is set to be complete at the beginning of next year and other construction projects are expected to bring demand for accommodation to the region.
The Townsville Bulletin has collated a list of the suburbs generating the highest rental yield for investors wanting to buy before the boom.
CoreLogic data shows the top performing suburb over the year to April was Magnetic Island’s Nelly Bay which returned an indicative gross rental yield of 8.8 per cent.
REIQ regional director Damien Keyes said the holiday hot spot was a drawcard for investors.
“Nelly Bay is typically an area for short-term holiday style accommodation,” Mr Keyes said.
“Investors are visiting for a holiday and they like the area so much that they are buying units and renting them out when they’re not there.
“It’s also right next to the ferry terminal which is where people are obviously staying when they visit.”
The second highest performing suburb for rental yield in the twelve months to April was Belgian Gardens, which had an indicative gross rental yield of 8.3 per cent for units.
The area is currently attracting attention from residential developers looking to take advantage of the opportunity.
“Rent in Belgian Gardens is obviously higher being on the fringe of the city,” Mr Keyes said.
“People are targeting professionals who are waiting to be close to the city for work, but still be in proximity to the strand.
Sales agent Martin McDonough, who is exclusively marketing the recently announced residential complex Little Street Luxury Residences in Belgian Gardens, said the apartments were expected to return a high rental yield.
“We are expecting $525 to $575 per week in rental return for a two-bedroom apartment in the complex,” Mr McDonough said.
“That’s going off today’s market, but in a few years’ time when they are built, we’re expecting that will go up.
“The two-bedroom residences are selling off the plan from $495,000 to about $560,000.”
Mr McDonough said prices for the apartments were expected to go up when the development was completed in 2021.
“Trying to get a new unit these days is very hard to find, so a lot of people are realising the apartments are something they can invest in,” Mr McDonough said.
“The block of 20, two to three-bedroom apartments, is ideal for investment and the higher end apartments we think will be mainly purchased by owner occupiers.
“We’ve set the prices according to the current market, but with the approval of Adani and once the stadium is finished, we’re expecting prices will be going up.”
Other suburbs returning a high rental yield were houses in Rasmussen and units in Hermit Park and Douglas.