Brisbane rental yields continue to remain higher than neighbouring capital cities on the eastern coast, following a report that also highlighted an increase in the vacancy rate.
The Knight Frank Australian Residential Review – December 2016 report showed Brisbane to have an average rental yield of 5.21%, maintaining higher-than-average rental yields despite yields slipping across the east coast compared to the previous year. This is substantially higher than both Sydney (4.16%) and Melbourne (4.24%).
Whilst yields have dropped over the past 12 months, there has also been a reduction of 23.9% in apartment approvals in July 2016 quarter (compared to the same quarter of 2015). This reduction in new apartment supply should support the high rental yield in coming years.
Brisbane’s growing outer suburbs recorded a substantially lower vacancy rate of 2.2% compared to the inner city where vacancies are 4.5%.