Hervey Bay rental levels stabilise: HTW residential
Hervey Bay has been experiencing steady rental levels over the past 12 months after a period of growth for the 12 months prior, according to a recent Herron Todd White (HTW) residential report.
The valuation firm took at look at rental yields across the nation.
The report notes the vacancy rate has been sub- 2% for an extended period now and rental pressure has seen rental rates improve across most asset classes.
According to the REIQ’s Monthly Monitor, median weekly rents rose across a number of dwelling types according to the annual measure.
Three- bedroom houses recorded a median weekly rent of $310 (up $10), two-bedroom units had a median of $263 (up $13) and three-bedroom townhouses came in at $330 (up $2).
"House yields held relatively steady at 5.1% this quarter, up 0.2% from the previous quarter. Unit yields rose by 0.7 percentage points over the December quarter 2018," the valuation firm said.
Units are achieving an overall median rent of $263 per week compared to the September 2018 quarter result of $255 per week.
The Monitor suggests that the rental market may continue to fluctuate seasonally, but gently rising median rents indicate the sector is generally firming.
Most dwellings with three to four bedrooms can achieve $340 per week at a minimum with gross yields typically above 5% per annum.
"Duplexes or blocks of flats can generally achieve a higher return than a standard dwelling, however buyers beware that any capital works required will cut into your net return.
"Single units typically realise a lower gross yield due to additional body corporate costs," the valuation firm said.
