Growth and rental yields highlighted in Pulse report

In this episode of The Property Playbook, host Tim Graham spoke with Terry Ryder, founder of Hotspotting and a leading real estate analyst, about the latest Pulse report.

The quarterly report identifies Australia’s top 50 locations offering strong capital growth alongside above-average rental yields, helping investors pinpoint safer, high-performing markets.

The November 2023 edition highlighted areas that achieved capital growth between 30% and nearly 90% over the past two years, with many of the standout locations in South Australia, Western Australia, and Queensland.

Interestingly, more affordable regions showed the strongest percentage growth, drawing attention from investors seeking a balance of rental income and long-term capital gains. Properties listed in the report generally offered yields of 6% or more, with towns like Rockhampton and Townsville delivering particularly attractive returns.

A growing divide

Since the report’s release, rental prices have risen further, pushing yields above 7% in some cases. The Pulse report, produced in collaboration with Washington Brown, also provides depreciation strategies that can boost yields even more. Challenging traditional thinking, the analysis suggests that it is still possible for investors to achieve both strong rental income and substantial capital growth.

However, finding these high-performing properties is becoming increasingly competitive, with a growing divide emerging between unit and house markets for identifying the best yields.

While not every area met expectations, even underperforming regions experienced reasonable growth, suggesting potential for recovery and long-term opportunity in regional markets. For investors, the key takeaway is that careful research and strategic property selection remain critical for maximizing both income and growth in Australia’s property landscape.