Hobart is popular with home buyers and tenants. (photo of property website Realestate)
Tasmania is the most profitable area for property investors who focus on rental income, with high rental yields, according to real estate website Realestate.
New data from CoreLogic, a real estate data analysis firm, show that recent rates of return on separate homes and units in Hobart, Tata, are among the best in any state city, according to new data from real estate data analytics firm CoreLogic.
On the stand-alone side, the city`s median house price is A $398522 and rents yield 5.5%. Urban areas with higher rental rates include Gecchibre (Gagebrook), 9.2 percent, Bridgewater (Bridgewater), 8.6 percent, Risden Valley (Risdon Vale), 8.5 percent and Clarendon Vale (Clarendon Vale), 8.2 percent.
On the flat side, Hobart has a median price of A $305592 and a rental yield of 5.8%. Better-yielding urban areas include Lockerbie (Rokeby) 7.7 percent; Bridgewater (Bridgewater) 7.6 percent; Clellmont (Claremont) 7.3 percent; and Monteros (Montrose) 7 percent.
Other state cities ranked Darwin 4.8 percent, Adelaide 4.6 percent, Brisbane 4.5 percent, Canberra 4.4 percent and Perth 4.1 percent, according to the data. The most popular investment cities, Melbourne and Sydney, have the highest median home prices in Australia, but rent yields are just 3.3 percent and 3.2 percent, respectively.
In terms of flats, Canberra`s median price was 434, 371, and the rental yield was next only to Hobart, at 5.4 percent. Next came Darwin 5.3 percent; Brisbane 5.2 percent; Adelaide 5.1 percent; Perth 4.4 percent. Melbourne and Sydney again fell short of the cities, at 4.4% and 4%, respectively.
Conitz than (Nerida Conisbee), chief economist at real estate media REA, said the state has been growing better in recent years, and Hobart has become the city with the biggest demand for buyers and tenants. This is mainly due to the shift of Tazhou`s development focus to tourism, as well as a large number of publicity to overseas students, which has greatly promoted the development of the education industry and attracted investment from China. Another factor is that Hobart is the cheapest of all Australian capital cities, with median prices below A $1 million in all parts of the city.
While the rate of return on the state`s rent is attractive, Konizby also cautions that where the best place to invest depends largely on the type of investor and the purpose of their investment. Some investors are looking for capital growth, others are more interested in rental income.
Independent Housing Rent rates in Australian Capital cities (data on median house prices, median weekly rents, rental rates):
Hobart: $398522; $380,5.5%;
Darwin: $570636; $525,4.8%;
Adelaide: $458013; A $360,4.6%;
Brisbane: $534593; $415,4.5%;
Canberra: $674799; $525,4.4%;
Perth: $510988; $370,4.1%;
Melbourne: $804316; $420; 3.3 per cent
Sydney: $1105954; $530,3.2%.
Australian prefecture city unit rental rate of return ranking (data are median house price, median weekly rent, rent rate of return):
Hobart: $305592; $320; 5.8%;
Canberra: $434371; A $420; 5.4%;
Darwin: $401179; $400; 5.3%;
Brisbane: $390708; $385; 5.2 per cent
Adelaide: $336297; A $310; 5.1 per cent
Perth: $409421; A $325; 4.4%;
Melbourne: $539810; $400; 4.4%;
Sydney: $771919; A $530; 4%.
