Undersupplied Suburbs in Queensland that are Perfect for Duplex Development
A big part of investing in duplex developments is identifying the areas that will result in the best return for your project. While this sounds difficult, if youre willing to put in the time and effort its possible to greatly increase you chances of getting it right.
One of the best ways to determine whether a location is worth developing is to look at the current supply of rental units. It stands to reason that if you build duplexes in a suburb that doesnt currently have enough rental units to meet the demand then youre going to be successful.
Are you searching for the perfect suburb for your next duplex build? Here are three Queensland suburbs that are undersupplied when it comes to rental units, making them ideal for duplex development.
This year, Gladstone Central has stolen the spotlight from areas like Newstead and Graceville, thanks to the immense demand for rental units.
This suburb currently has had a healthy vacancy rate of 3.1%. This is a nice decline from its previous rate of 4.2%. When you consider that in 2016 vacancies were at a high of 11.3% its clear that demand in this area is rising steadily and the supply is having a hard time keeping up.
- Median Sale Price: $325,000
- Median Weekly Rent: $220
- Median Gross Yield: 3.4%
Currently, the vacancy rate in Townsville City stands at just 1.5%. This is a big drop from the 4.3% rate we saw just a few years ago. This is largely due to the February floods, but its still impressive nonetheless.
The property market in Townsville is starting to pick up. Experts expect vacancy rates to ease back to a healthy range of 2.5% to 3.5% during 2020. These numbers make it a very promising location and a perfect suburb for a duplex build.
Median Sale Price: $528,000
Median Weekly Rent: $350
Median Gross Yield: 3.5%
Fraser Island is another suburb that offers a lot of potential for duplex development. The property market in this area is growing and the suburb is known for its higher than average income levels.
On top of this, Fraser Island has a vacancy rate of just 1.1%, making it extremely hard for renters to find available units. If you add all these factors together youll see that there are plenty of opportunities for duplex investment here.
Median Sale Price: $365,456
Median Unit Value: $255,169
Median Weekly Rent: $210