CommBank Property Insights predict that an apartment boom in Brisbane will lead to a hangover of units in 2016, and this could be good news for renters. To date, supply has not kept up with demand but that is about to change as completions come on line in greater numbers throughout 2016. The result will be increasing vacancy rates and falling rental prices.

This surge in completions will reach its peak in 2017, and even then it will take a few years for the extra supply to be worked out of the system. However, going forward CommBank expects some projects to be mothballed as they become hampered by increasing land costs, higher costs of building, and increased difficulty to obtain development finance.

Researchers at Domain expect the Brisbane market to rise gradually, with price growth pegged at around 3% to 4%. It believes that the best performing Brisbane suburbs will be to the north and outer south: suburbs such as Redcliffe, Everton Park, and Taigum.

Redcliffe (4020)

House tenants pay an average of $ 350 per week in rent, yielding owners a return of 4.73% based on the median house price of $ 385,000 (which has increased in price by 1.45% over the last year).

Unit rental averages $ 350 per week. At the median price of $ 371,400, which is an increase of 7.65% over this time last year, owners yield 4.90%.

[el]496[/el]

Everton Park (4053)

Average house rental is $ 430 per week. With a median price of $ 531,500 (an increase of 4.21% over the price 12 months ago), investors will make a gross rental yield of 4.21%.

Tenants of apartments will pay an average rent of $ 390, which yields the investor 4.68% at the current median price of $ 433,750 that has increased by 3.27% over the last year.

[el]497[/el]

Taigum (4018)

The median house price has risen by 4.53% to $ 485,000 over the last 12 months. The average weekly rental of $ 450 produces a rental yield of 4.82%.

The median unit price of $ 347,000 is 9.64% lower than 12 months ago. At this price, the rental yield is 5.69% based upon the average weekly rental of $ 380.

[el]498[/el]

(Data from CoreLogic RP Data)

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