Top Suburbs for Rental Yield in Queensland
When investing in real estate, you must look at potential rental yields. Although you won’t know exactly how much a property will make before investing, you can make a calculated estimate based on location and similar properties. There are a few regions where rental yields are considerably higher. Before investing, take note of the high rental yield suburbs in Queensland:
Why invest in Queensland real estate?
Queensland is an increasingly popular destination for property investors because of its strong local economy, population growth, and infrastructure improvements. Investors also see potential high rental yields while having a lower barrier of entry compared to states like New South Wales and Victoria. Recently, supply and demand in the local real estate sector have been working in investors' favour.
Queensland has become one of the best places for property investment for those looking to capitalise on good rental yields and capital growth. The average property price in the state has increased to $853,900 in December 2024 from $828,700 in December 2023.
According to realestate.com.au, reports from Propertyology predict regional areas in Queensland will see major property price increases while Brisbane may get a 10% increase in prices. PropTrack has also forecasted Greater Brisbane to have minimal property price hikes of two to five per cent. These real estate projections may change depending on factors such as interest rates, supply, demand, and the like.
Suburbs in Greater Brisbane with the highest rental yield
Brisbane’s rental market has seen some growth in 2024 with median weekly rents rising by 5%. The average advertised weekly rent for Brisbane is $630. Residential vacancy rates remained low throughout the year at an estimated 1.1% which could point to reliable rental income for property investors.
A challenge now for property investors in Brisbane and Greater Queensland is monitoring the supply and demand. Some areas may favour units more than houses and vice versa. The key is to do extensive market research beforehand to get the pulse of the area.
Highest house rental yield suburbs in Greater Brisbane
| Suburb | Region | Rental Yield | Median Rental Value |
|---|---|---|---|
| Brisbane City | Brisbane Inner City | 6.5% | $743 |
| Newstead | Brisbane Inner City | 6.4% | $795 |
| Russell Island | Brisbane - East | 5.4% | $439 |
| Macleay Island | Brisbane - East | 5.3% | $480 |
| Laidley | Ipswich | 5.1% | $528 |
| Laidley North | Ipswich | 4.9% | $576 |
| Kilcoy | Moreton Bay - North | 4.9% | $529 |
| Coochiemudlo Island | Brisbane - East | 4.8% | $519 |
| Basin Pocket | Ipswich | 4.8% | $519 |
| North Booval | Ipswich | 4.8% | $535 |
Source: CoreLogic Best of the Best 2024 (December 2024) report
Most of the top rental yield suburbs for houses are found in Ipswich, Brisbane East, and Brisbane Inner City. This quarter, though still dominated by only three regions, shows more variety compared to the highest rental yield suburbs in 2023 which were mostly in Ipswich. The top 10 suburbs have rental yields ranging from 4.8% to 6.5%; these percentages are higher compared to last year’s figures as well.
Highest unit rental yield suburbs in Greater Brisbane
| Suburb | Region | Rental Yield | Median Rental Value |
|---|---|---|---|
| Goodna | Ipswich | 6.0% | $429 |
| Spring Hill | Brisbane Inner City | 6.0% | $632 |
| Caboolture | Moreton Bay - North | 5.9% | $412 |
| Fortitude Valley | Brisbane Inner City | 5.8% | $641 |
| Brisbane City | Brisbane Inner City | 5.6% | $786 |
| Bowen Hills | Brisbane Inner City | 5.5% | $622 |
| Upper Mount Gravatt | Brisbane - South | 5.5% | $640 |
| South Brisbane | Brisbane Inner City | 5.5% | $744 |
| Woodridge | Logan - Beaudesert | 5.4% | $397 |
| Logan Central | Logan - Beaudesert | 5.3% | $391 |
Source: CoreLogic Best of the Best 2024 (December 2024) report
Rental yields for units in Greater Brisbane are between 5.3% and 6.0% but have median rental values ranging from $391 to $786. It’s always a good idea to look at the median rental value alongside the rental yield percentage to get a better idea of the value and cost associated with the rental property.
Suburbs in Regional Queensland with the highest rental yield
Regional Queensland is not lagging behind Greater Brisbane in terms of property prices and rental yields. Market insights from CoreLogic show that regional Queensland’s dwelling values have increased significantly. On an annual basis, regional Queensland continues to be the strongest-performing regional market in Australia, with property values rising by 11.9%. Housing prices in regional Queensland have increased by 12.1% and units by 11.2%.
The higher property prices could have played a role in the decreased property sales. House and unit sales have gone down by 5.2% and 8.9% since last year respectively. However, as seen by the rental yields below, the rental market in regional Queensland remains strong, with most rental yields exceeding 7%. The highest gross rental yields in Rural Queensland outpace those in Greater Brisbane.
Highest house rental yield suburbs in Regional Queensland
| Suburb | Region | Rental Yield | Median Rental Value |
|---|---|---|---|
| Collinsville | Mackay - Isaac - Whitsunday | 12.6% | $423 |
| Dysart | Mackay - Isaac - Whitsunday | 10.4% | $419 |
| Moranbah | Mackay - Isaac - Whitsunday | 10.0% | $699 |
| Blackwater | Central Queensland | 10.0% | $443 |
| Mount Morgan | Central Queensland | 8.7% | $409 |
| Capella | Central Queensland | 8.7% | $442 |
| Ingham | Townsville | 8.2% | $418 |
| Charters Towers City | Townsville | 8.0% | $398 |
| Clermont | Mackay - Isaac - Whitsunday | 8.0% | $421 |
| Depot Hill | Central Queensland | 7.8% | $420 |
Source: CoreLogic Best of the Best 2024 (December 2024) report
The highest rental yields suburbs for houses in Regional Queensland can be found in only three regions: Mackay-Isaac-Whitsunday, Central Queensland, and Townsville.
Regional Queensland's rental yields vary greatly from 7.8% to 12.6%. This makes finding the right suburb for your investment property incredibly important as it has a huge effect on your potential rental yields.
Highest unit rental yield suburbs in Regional Queensland
| Suburb | Region | Rental Yield | Median Rental Value |
|---|---|---|---|
| Moranbah | Mackay - Isaac - Whitsunday | 9.7% | $663 |
| Emerald | Central Queensland | 8.4% | $400 |
| Woree | Cairns | 8.4% | $392 |
| Manunda | Cairns | 7.4% | $427 |
| Bungalow | Cairns | 7.2% | $428 |
| Manoora | Cairns | 7.2% | $434 |
| Barney Point | Central Queensland | 7.1% | $388 |
| East Mackay | Mackay - Isaac - Whitsunday | 7.0% | $430 |
| Douglas | Townsville | 7.0% | $458 |
| Earlville | Cairns | 7.0% | $435 |
Source: CoreLogic Best of the Best 2024 (December 2024) report
Rental yield percentages for units range from 7.0% to 9.7%. Only Moranbah, Emerald, and Woree have over 8% rental yields, the rest are between 7.0% to 7.4%.
Half of the suburbs on the list of highest rental yield units come from Cairns with the rest from Mackay-Isaac-Whitsunday and Townsville. As an investor, it may be a good idea to focus on these areas
It’s interesting to note, however, that the Mackay-Isaac-Whitsunday has suburbs with the highest grossing rental yields in the state both for units and houses.
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