Forest Lake: Among Top Suburbs with Highest Rental Yield

Forest Lake Highest Rental Yield
Bunya Street, Forest Lake | Photo Credit: Google Street View / google.com/maps

A recent study revealed that Forest Lake is among the top suburbs with the highest rental yield.

Place Advisory’s latest property data crunch showed that among Brisbane suburbs, Forest Lake along with Darra, Ellen Grove, and Kuraby have the highest weekly rental yield for a 3-bedroom house at five percent. Considering the median price, however, Darra tops the list with a more affordable median house price of $350,500.

Forest Lake, on the other hand, has a median price of $382,000 and weekly rental price of $365. Looking at CoreLogic’s propertyvalue.com.au suburb profile report for Forest Lake, covering data over the last 12 months, the median asking rent for houses is at $395 per week and a gross yield of 4.6%.

The suburbs of Durack, Richlands, Inala, Doolandella, Acacia Ridge, Willawong, Pallara, Larapinta, Heathwood follow with a weekly rent yield of 4.7 percent. Experts believe that a move towards six percent yield is possible, although five percent is already a good yield.

In terms of rental income, New Farm is the top suburb with a weekly rental income of $650 and a yield of 2.5 percent. New Farm is followed by Spring Hill and Petrie Terrace ($600 / 3.6%); Paddington and Milton ($600 / 3.4%); Red Hill and Kelvin  Grove ($565 / 3.6 %); and Auchenflower and Toowong ($555 / 3.6). 

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During the first quarter of 2019, the rental market in Brisbane continued  to tighten, as Inner Brisbane and Brisbane LGA record their lowest vacancy rates — 2.1% and 2.5%, respectively — years after the local market was hit by supply glut.

Experts at Place Advisory attributes the strong performance to the increasing rate of population growth in these two markets; conversely, the rate of supply of new dwellings entering the market is declining. The tightening supply has also resulted in rental price growth during the first quarter of 2019, across all property types.