Headline in today's paper:
UNITS continue to outperform houses in Brisbane, according to the latest market research from property analysts RP Data.
Extract from story:
"And, from an investment perspective, they offer superior rental returns. The gross rental yield for a Brisbane house is currently recorded at 4.7 per cent compared to 5.3 per cent for Brisbane units." [Note: this does not take into account higher costs for apartments, namely body corporate fees. It may be the case that net yields are similar for apartments and houses.]
The level of vendor discounting for houses is also greater - 8.3 per cent compared with 6.8 per cent for units.
"Discounting levels for houses are higher than at the same time last year, however unit discounting is slightly improved from the 7 per cent 12 months ago," Mr Kusher said.
"Despite the inflated discount levels, both measures are below their recent peaks of 8.7 per cent and 7.8 per cent respectively."
The average time it takes to sell a Brisbane property is also at relatively high levels.
Of those properties that sold in October, houses had been on the market for an average of 61 days and units 60 days. Both measures were higher than they were 12 months ago, but both had improved from their respective recent peaks of 66 days for houses and 61 days for units.
Mr Kusher said the data was for October and therefore did not take into account the Reserve Bank cut in interest rates by 25 basis points on Melbourne Cup day."