THEY are the places that top the lists when it comes to holidays but new research has revealed the biggest tourist areas of Australia may be the worst places to buy houses.
According to figures collated by finder.com.au the areas with the highest international visitor numbers did not always return the best yields or capital growth.
As many of the top visitor spots are our capital cities buying a house can be expensive and with rental growth down in most cities, the returns for investors are not good.
Units, which were often cheaper to buy, offered investors better returns in most of the holiday hot spots.
PROPERTY prices may be rising but rents have ground to a halt with new research revealing rental growth is at its lowest level in more than a decade.
The latest CoreLogic RP Data quarterly rental review found that combined capital city advertised
rents had only increased by 1.8 per cent in the past 12 months.
In the last quarter of 2014 rents were unchanged at $430 a week for a house and $410 a week for units.
Hobart house rents experienced the strongest growth of 5.4 per cent in the last quarter of 2014, followed by Brisbane at 2.5 per cent.
Perth and Darwin were the weakest house rental markets with their rents down by 2.2 per cent and 0.8 during the quarter.
The unit market’s performance was “somewhat weaker’’ than the housing market across the board with Hobart and Brisbane the only capital cities to experience an increase in rents during the quarter of 1.8 per cent and 1.3 per cent respectively.
Unit rents fell during the period in all other capital cities.
Despite its rents dropping, Darwin still had the highest median rent for houses and units at $645 a week and $550 a week.
Even though it had the biggest increase in rents during the quarter Hobart had the cheapest median rent for houses and units at $343 a week and $280 a week.
CoreLogic RP Data research analyst Cameron Kusher said the figures revealed the most subdued rental market since the mid 2000s.
“While rental growth remains low, rents still increased over the year in most cities with Perth, Darwin and Canberra the exceptions,’’ he said.
Mr Kusher predicts rental growth will remain fairly soft throughout 2015 particularly as there is a high number of new dwellings approved and ready for construction.
In Queensland’s the Brisbane CBD pipped the Gold Coast in terms of visitor numbers. Houses returned poor yields of 3.49 per cent while the unit market was a much stronger performer at 6.33 per cent
If you’re going to invest on the Gold Coast or Sunshine Coast the unit markets in both those regions were a much better prospect with much stronger rental returns.
TOP 5 AREAS OF QLD WITH HIGHEST INTERNATIONAL VISITORS — HOUSES
Brisbane — 974,156 visitors — 3.49%
Gold Coast — 792,702 visitors — 3.3%
Tropical north Qld — 684,241 visitors — 4.42%
Sunshine Coast — 218,404 visitors — 4.81%
Whitsundays — 182,337 visitors — 3.48%
In Tasmania the returns in Hobart were fairly evenly split between the house and unit markets.
With 129,292 international visitors during the year, houses return 4.49 per cent and units 4.87 per cent.