The latest findings from Washington Brown and Hotspotting revealed a list of top locations where property investors can find the ideal blend of capital growth and high rental yields.
These areas benefit from robust local economies and low vacancy rates, making them prime targets for savvy investors seeking profitable opportunities.
Tyron Hyde (pictured above left), director of Washington Brown, highlighted the exceptional performance of specific markets.
“Among the most outstanding performers identified by this report are locations where property values have risen notably, but rental yields have increased because there has been an exceptional increase in rents,” Hyde said.
Notably, the town of Dalby in Queensland and Murray Bridge in South Australia have shown significant increases in both property values and rental yields.
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Dalby, a key regional center in Queensland, has seen a dramatic rise in rents by 24% over the past year, pushing the median rental yield from 6.6% to 7.2%.
Similarly, in Murray Bridge, rents have surged by 27%, with property values climbing sharply.
“With vacancies near zero, these areas are showing tremendous growth in both rental income and property value,” Hyde said.
The financial advantages extend beyond typical investment returns.
“In Murray Bridge and Armadale, investors could claim significant depreciation benefits, which could potentially produce a taxation benefit depending on their personal income tax rate,” Hyde said.
The report listed top locations like Dalby, Murray Bridge, and Armadale among others, each showing strong capital growth and high rental yields, complemented by local economic strength and low vacancy rates.
Here’s the top 10 list.
1. Dalby, Queensland
2. Murray Bridge, South Australia
3. Armadale, Western Australia
4. Bowen Hills (units), Queensland
5. Yorkeys Knob (units), Queensland
6. Balga, Western Australia
7. Woodridge (units), Queensland
8. Carey Park, Western Australia
9. Bundaberg South, Queensland
10. Geraldton, Western Australia
“These locations not only provide strong rental returns but also hold potential for capital appreciation due to ongoing regional development and economic factors,” said Terry Ryder (pictured above right), Hotspotting director.
Each top-performing location has its unique economic drivers, from natural resources and manufacturing to healthcare and retail. These industries not only fuel the local economy but also provide abundant employment opportunities, further strengthening the rental and property markets.
The report suggested a positive long-term outlook for these regions, with expected population growth and continued economic development making them attractive for both first-time homebuyers and seasoned investors.
“The strategic location and economic conditions in these areas make them highly desirable for long-term investment," Hyde said.
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