Recent data from MCG Quantity Surveyors reveals that regional markets are demonstrating higher rental yields compared to metropolitan areas. Regions such as West Pilbara, Campaspe, and Outback – South are showing notable returns, which may catch the attention of property investors.
“Regional areas are exhibiting higher rental yields than metropolitan areas,” says Mike Mortlock, Managing Director of MCG Quantity Surveyors. “For instance, West Pilbara in Western Australia has house yields of 9.85 per cent and unit yields of 13.12 per cent, driven by strong rental demand in the mining sector.”
Victoria’s Campaspe region reports house yields of 6.23 per cent and 11.28 per cent for units. These yields are influenced by affordable property prices and consistent rental demand. “Regions like Campaspe in Victoria are currently reflecting strong rental yields,” Mortlock notes.
Queensland’s Outback – South and Bowen Basin – North have high house yields at 9.07 per cent and 8.88 per cent, respectively and unit yields at 9.63 per cent. These yields reflect tight rental markets supported by industries such as mining and agriculture.
However, it’s crucial for investors to consider the risks associated with these regions, particularly in terms of capital growth. While yields are high, regional areas can be more volatile and may not offer the same long-term capital growth potential as metropolitan areas. “It’s important to balance the attraction of high yields with the potential for capital growth,” Mortlock advises. “Investors should carefully consider the overall risk profile and their long-term investment strategy.”
The comparative analysis further shows that yields in metropolitan areas tend to increase with distance from the CBD. For example, Brisbane’s house yields increase from 2.81 per cent (0-10km) to 4.13 per cent (20-30km) and unit yields from 4.92 per cent to 5.55 per cent. Perth exhibits a similar trend, with house yields rising from 3.38 per cent to 4.70 per cent and unit yields from 5.55 per cent to 6.34 per cent.
“Investors may find higher returns in suburbs further from the city centre,” Mortlock notes. “However, regional areas are currently exhibiting higher yields, particularly in resource-rich regions. This underscores the importance of a diversified investment strategy that considers both regional and metropolitan markets.”
For more information on these trends and detailed data on property yields, visit MCG Quantity Surveyors’ website.
