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Strong yields on offer in new home markets

Investors looking to buy new house and land are able to achieve yields of more than seven per cent, thanks to the ongoing shortage of housing, according to a new report.

OpenLot’s National Top 20 Report found that a number of locations around the country provide incredibly strong yields for investors, particularly in Queensland and Western Australia.

The report found that Hope Island, in Queensland, was the market with the strongest yield at 7.61 per cent.

Hope Island on the Gold Coast, currently has a 2.1 per cent vacancy rate and is attracting rents of $1200 per week, as people continue to move to the Sunshine State.

Echuca, a town in northern Victoria, is also experiencing yields of 7.2 per cent.

While Andergrove and Edmonton in Queensland and Kalbarri, in the north of Western Australia, are other house and land markets where investors can see a yield greater than 7 per cent.

Across Queensland, there were 10 markets with yields higher than 6 per cent.

Western Australia had 13 markets with yields above 6 per cent, while NSW had two and Victoria had three.

Qi Chen, CEO and Founder of OpenLot, said there is a lot of opportunity for new house investments in the current market.

“Our methodology, with a focus on potential yield, vacancy rates, and typical rent, paints a clear picture of opportunity, especially in areas like Hope Island, QLD, and Echuca, VIC,” Mr Chen said.

“Investing in new houses represents a compelling opportunity in the current Australian market. 

“Whether it’s the attractive yield in Kalbarri, WA or the promising vacancy rates in Southern River, WA, our report illuminates the path for informed decision-making. 

He said investing in new home markets is more than numbers.

“It’s about understanding the nuances of each suburb, such as vacancy rates and local community interaction,” he said.

Source: OpenLot’s National Top 20 Report

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Rowan Crosby

Rowan Crosby is a senior journalist at Elite Agent specialising in finance and real estate.