Kingsthorpe Tops QLD Rent Yield List

15/10/2009

The Kingsthorpe district in Darling Downs has topped a Real Estate Institute of Queensland (REIQ) list of the areas giving the highest rental yield percentile in the state, with returns of 6%.

The REIQ reported that Kingsthorpe's success is due to its affordable median house price of $240,000 and an increase of its median rent from $250 to $280 per week over the June quarter. A REIQ statement continued, "Kingsthorpe is an affordable place to buy in the Darling Downs region and offers a great lifestyle with houses often on large blocks."

Steady rents and an easing of property price growth in some areas have resulted in a number of other postcodes recording improved gross rental yields over the June quarter. The REIQ gross rental yield report also revealed that while median rents have either remained steady or risen slightly across Queensland, there has also been a levelling of prices in some areas which has contributed to stronger yields.

Second in the raking was Sarina with a yield of 5.9 per cent, while Mount Morgan with its extremely low median house price of $142,000 came in third. Macleay and Russell islands in Brisbane's Moreton Bay were a new entry on the REIQ's list, with a combined gross yield of 5.8 per cent.

The group's statement continued, "Both islands are consistently some of Brisbane's most affordable places to buy, and when coupled with a $15 increase in median rent over the period, the islands are providing very solid yields for investors."