Press Release

For immediate release

Information verified correct on December 8th, 2016

Investing in holiday hot spots in 2015? Sydney should not be on your list

  • finder.com.au lists top Australian holiday cities by their yield
  • Top holiday destinations rank among lowest yields for second consecutive year
  • Property investors warned to look beyond popular holiday spots!

July 15, 2015, Sydney – One of Australia’s biggest comparison websites finder.com.au is warning property investors to consider avoiding the most popular holiday cities, following new research into the yields of the top Australian travel destinations.

For the second consecutive year, finder.com.au analysed tripadvisor’s 2015 Traveller’s Choice Awards of the top 10 destinations in Australia. The top destinations once again returned among the lowest yields.

Sydney, Melbourne and Brisbane all ranked as the top three holiday destinations consecutively, however, they also ranked as the three lowest yields for housing investment, achieving between 1.93-3.29 percent yield.

Despite Sydney holding onto its status as most popular holiday destination, its investment potential has plummeted in the last 12 months. In fact, Sydney is now the lowest value for housing property investment out of the list of 10 cities, with a yield of just 1.93 percent, an average rent of $855 per week and median house price of $2.308 million.

Last year, Sydney was the second-lowest value for housing property investment, with a yield that dropped by 1.40 percentage points from 3.33 percent, average housing rent dropped by $265 per week from $1,120 per week last year, while the median house price increased by $558,000 from $1.75 million.

Sydney also hit low on the list for unit investments, at seventh place, with a yield of 5.26 percent, average rent of $760 per week and median unit price of $756,000. Last year, while Sydney was also the top Traveller’s Choice, it has fallen from fourth place for unit investments last year. Its yield was 6.26 percent, dropping by 1.00 percentage points since then, with a median unit price of $598,000 and average rent was $720 per week.

On the flip side, while Cessnock was the 10th most popular holiday destination, it once again topped the list for best housing investment. This is despite its yield dropping by 0.42 percentage points in the past year to 5.89 percent. With a median house price of $269,000 it is the cheapest housing market of the top 10 destinations. Its average rent is $305 per week.

Cessnock’s median house price increased from $255,500 last year and rent dropped slightly from $310 per week in 2014.

Port Douglas has once more topped the list for units with the highest yield of 7.45 percent as well as the lowest median unit price of $204,000 and average rent per week $290. Last year when it topped the list for highest yield, it was 7.7 percent with a median price of $184,000 and $275 average rent per week.

Michelle Hutchison, Money Expert at finder.com.au, said property investors need to be wary of popular travel spots.

“For the second year in a row, we’ve seen the busiest travel spots return some of the lowest yields for investors because their demand causes high property values that outpaces their rental prices. This could potentially mean a bad investment decision.

“Property investors need to do their research when comparing investment property hot spots, including the potential return on their investments. And the return on a property can be massively impacted by the investment home loan, so investors need to spend as much time comparing investment locations as the best value investment home loans to maximise their return.”

Margaret River in Western Australia entered the top 10 travel destinations this year and ranked second in yield for houses with a return of 4.54 percent. Margaret River also had the second lowest median housing price of $482,500. Adelaide, Cairns and Noosa also made the list. Popular travel destinations that were on the list last year and bumped this year were Canberra, Airlie Beach, Darwin and Byron Bay.

Screen Shot 2015-07-21 at 9.40.14 am

source: finder.com.au, tripadvisor’s Traveller’s Choice 2015 top 10 destination ranked according to rental yield, prices and figures from Residex (on onthehouse.com.au) based on postcodes


Screen Shot 2015-07-21 at 9.42.02 am

source: finder.com.au, tripadvisor’s Traveller’s Choice 2015 top 10 destination ranked according to rental yield, prices and figures from Residex (on onthehouse.com.au) based on postcodes

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Disclaimer

The information in this release is accurate as of the date published, but rates, fees and other product features may have changed. Please see updated product information on finder.com.au's review pages for the current correct values.

About finder.com.au:

finder.com.au is one of Australia’s biggest comparison websites and has helped over 4.8 million Australians find better credit cards, home loans, life insurance, shopping deals and more since 2006. finder.com.au compares 250 credit and debit cards from 31 providers, over 300 home loan products, and information from 13 life insurance providers as well as online shopping promo codes, mobile phone plans, travel insurance and more. One Australian every five minutes is using finder.com.au or creditcardfinder.com.au to find better (Source: Google Analytics).

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