Best Inflation-Fighting Real Estate Investments in Every State

Press release

For immediate release

July 23, 2024

Best Inflation-Fighting Real Estate Investments in Every State

Recent data from MCG Quantity Surveyors shows that regional markets are showing higher rental yields compared to metropolitan areas. Regions such as West Pilbara, Campaspe and Outback – South are showing notable yields, which could attract the attention of property investors.

“Regional areas are showing higher rental yields than metropolitan areas,” says Mike Mortlock, Managing Director of MCG Quantity Surveyors. “For example, West Pilbara in Western Australia has a house yield of 9.85% and a unit yield of 13.12%, driven by strong rental demand in the mining sector.”

The Campaspe region of Victoria is reporting house yields of 6.23% and 11.28% for units. These yields are being driven by affordable property prices and consistent rental demand. “Regions such as Campaspe in Victoria are currently reflecting strong rental yields,” Mortlock notes.

Queensland’s Outback – South and Bowen Basin – North have high house yields of 9.07% and 8.88% respectively and unit yields of 9.63%. These yields reflect tight rental markets supported by industries such as mining and agriculture.

However, it is crucial for investors to consider the risks associated with these regions, particularly in terms of capital growth. Although yields are high, regional areas can be more volatile and may not offer the same potential for long-term capital growth as metropolitan areas. “It is important to balance the appeal of high yields with the potential for capital growth,” advises Mortlock. “Investors should carefully consider their overall risk profile and their long-term investment strategy.”

The comparative analysis further shows that yields in metropolitan areas tend to increase with distance from the CBD. For example, in Brisbane, yields on houses increase from 2.81% (0-10km) to 4.13% (20-30km) and yields on units from 4.92% to 5.55%. Perth shows a similar trend, with yields on houses increasing from 3.38% to 4.70% and yields on units from 5.55% to 6.34%.

“Investors may find higher returns in suburbs that are further away from the city centre,” Mortlock notes. “However, regional areas are currently showing higher returns, particularly in resource-rich regions. This highlights the importance of a diversified investment strategy that considers both regional and metropolitan markets.”

For more information on these trends and detailed property yield data, visit the MCG Quantity Surveyors website.

Mike Mortlock

General Manager, MCG Quantity Surveyors

Phone: 0409 956 797

Email address: [email protected]

Website: www.mcgqs.com.au