Low Rates and Strong Rental Yields in Queensland
In Queensland, home values are rising, interest rates are at a record low and rental yields are strong, according to a report from The Courier Mail.
Research by CoreLogic Property Pulse shows these trends are tempting property investors into the market with Queensland being the hottest destination.
CoreLogic researcher Tim Lawless notes improved capital gains prospects plus the loosening of credit policies were the likely reasons for bringing investors back.
The value of home loans taken out by investors has risen by 11.6% over the past three months, making this the fastest growth since November 2016.
Across Australia, every state and territory has seen a rise in the value of investment loans. In Queensland, investors comprised 19.6% of the national market. CoreLogic says there is a strong likelihood investor activity will increase further.
However, competition is increasing, particularly in Brisbane, where agents are pitching to first home buyers by highlighting a property’s rental yields and occupancy rates.
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