Cairns becomes a property hot spot with nation’s best yields
Cairns is Australia’s best place to buy an investment property, according to SQM Research.
The Government will spend $30 million on the development of two wharves and a business plan for further expansion
The property research company said Cairns had the country’s highest unit gross rental yields.
Citing Domain’s Rent Report, SQM said there were several suburbs that had yields of 8 per cent which it said was “basically cash flow positive”.
The comparable yield in Brisbane was 5.73 and Sydney is 4.52.
Domain’s chief of research and economics Dr Nicola Powell said the gross rental yield looks at what the price of a property would be its rental income.
“It’s the income from rent versus how much it would cost you to purchase that house,” she said.
“When you have a yield of over 7 or 8 per cent, that is a very strong yield. It’s cash-flow positive.”
“The suburb of Bungalow is just 2.8 kilometres from Cairns CBD and currently has Australia’s highest median gross rental yield at 8.93 per cent.
“Apartments there have a median price of just $200,000 – which is merely a deposit in the Sydney property market. ”
However, unit development had dried up in Cairns and there were about 700 units on the market compared with 2000 pre-Covid.
