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Brisbane investment property offers strong returns

Brisbane has long been a hub for property investment – with plenty of dwelling types on offer and access to fantastic infrastructure and services, it is hardly surprising that this has been the case.

With talk of a housing bubble consuming much of the property market at the moment, latest data will no doubt give investors the confidence they need to head to the Queensland capital.

Dwelling values have increased over recent months, making Brisbane the number one choice for many people hoping to invest in a Queensland rental property.

High returns on Brisbane properties

The latest figures from RP Data and Rismark International show that Brisbane has offered steady returns to investors over recent months.

In September 2013, the average dwelling price stood at $420,000, making it one of the more affordable state capitals in which to consider making a property investment.

Compared to the same month last year, this marks a rise of 1.1 per cent, showing that Brisbane investors are seeing returns on their investment at a time when other parts of the country are struggling.

On a quarterly basis, dwelling values increased 1.2 per cent, leading to total gross returns of six per cent.

Considering capital gains

One major point that any investor should think about is the capital gains achieved in a certain area.

RP Data research director Tim Lawless highlighted that looking at the history of capital gains will paint a valuable picture of an area, helping people to make an informed decision.

He noted that "the Australian housing market is broadly in the middle of a healthy growth phase", which is something that any would-be investor should be keen to take advantage of.

Capital gains have typically been skewed towards detached properties rather than medium to high-density housing, Mr Lawless revealed, so investors might want to bear this in mind.

Looking at gross rental yields

Another important factor that needs to be given consideration is the gross rental yields available on Brisbane property.

Mr Lawless emphasised that on a national basis, rental yields are generally higher for units than they are houses – something which is likely to come as good news to anyone looking for real estate in Brisbane.

REIQ data recently showed that unit sales have soared across the state, growing almost 40 per cent between the March and June quarters of this year, suggesting that people are already recognising this to be the case.

Brisbane currently has a vacancy rate of 2.1 per cent, which indicates there is currently more demand than supply – this should give investors the impetus they need to make a move on the market.

With property prices increasing and the need for rental properties growing, there has been no better time to invest in Brisbane.