What are the rental yields in Brisbane?

Authored by the expert who managed and guided the team behind the Australia Property Pack

Yes, the analysis of Brisbane's property market is included in our pack

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Brisbane. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Australian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Brisbane, Sydney, and Melbourne. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What are the current average gross rental yields for houses and apartments in Brisbane?

Houses in Brisbane are delivering an average gross rental yield of 4.2% as of September 2025, while apartments and units are performing stronger at 5.1% gross yield.

The higher yields on apartments reflect their lower purchase prices relative to rental income potential, making them particularly attractive to new investors seeking cash flow.

These yields represent a solid return in the current Australian property market, especially considering Brisbane's strong tenant demand and sub-1% vacancy rates.

For context, a typical Brisbane house with a median price of $1,000,422 generates approximately $800-820 in weekly rent, translating to $41,600-42,640 in annual rental income.

It's something we develop in our Australia property pack.

How do rental yields vary between inner-city, middle-ring, and outer suburbs of Brisbane?

Inner-city Brisbane suburbs like Spring Hill and South Brisbane typically deliver gross yields between 2.9% and 4.5%, with the lower end reflecting premium locations and higher property values.

Middle-ring suburbs including Kenmore, Stafford, and Chermside show yields of 3.1% to 3.5% for houses, with units often performing slightly better in these established residential areas.

Outer suburbs and the Ipswich corridor, including areas like Goodna and Woodridge, offer the strongest yields at 6% to 7%+ for units and townhouses.

The yield differential reflects the inverse relationship between property prices and rental returns, where affordable outer areas provide better cash flow despite potentially slower capital growth.

Transport connectivity and proximity to employment hubs significantly influence these yield patterns across Brisbane's suburb rings.

What are the median property prices and expected rental income in key Brisbane suburbs?

Property Type	Median Price	Median Weekly Rent	Annual Rental Income	Approximate Gross Yield
House (Brisbane-wide)	$1,000,422	$800-$820	$41,600-$42,640	4.2%
Unit/Apartment (Brisbane-wide)	$709,823	$650	$33,800	5.1%
Inner-city One-bedroom	$550,000-$650,000	$500-$600	$26,000-$31,200	4.0-4.8%
Middle-ring Three-bedroom House	$950,000-$1,200,000	$750-$900	$39,000-$46,800	3.2-3.9%
Outer Suburb Townhouse	$600,000-$750,000	$580-$680	$30,160-$35,360	5.0-5.9%
CBD Luxury Apartment	$800,000-$1,200,000	$700-$950	$36,400-$49,400	3.8-4.6%
Growth Corridor Unit	$450,000-$550,000	$480-$580	$24,960-$30,160	5.5-6.7%

Which property types deliver the strongest rental yields in Brisbane?

Apartments and units consistently deliver the highest gross rental yields in Brisbane, typically ranging from 4.5% to 6.5%, particularly in inner-city and high-demand corridor locations.

Townhouses represent a strong middle ground, appealing to family tenants and often delivering yields between 4.5% to 6% in middle and outer ring suburbs.

Freestanding houses generally provide lower yields of 3% to 4.5% due to their higher purchase prices, though they often compensate with stronger long-term capital growth potential.

Niche property types like dual occupancy properties and homes with granny flats can deliver exceptional cash yields when properly managed and targeted to the right tenant market.

Properties suitable for short-term letting arrangements may achieve even higher returns, though this requires active management and compliance with local regulations.

How do yields compare between new builds and older properties across Brisbane?

Newer apartment units often attract rental premiums but frequently come with higher body corporate fees that can significantly reduce net yields despite similar or slightly higher gross yields.

Older properties typically offer better net yields when purchased at lower prices and when body corporate and maintenance costs are well-managed, though deferred maintenance can quickly erode profitability.

New builds in outer suburbs may offer attractive gross yields but often require time to establish rental history and may face competition from other new developments.

Established properties in proven rental locations generally provide more predictable yield outcomes with known expense structures and tenant demand patterns.

The key differentiator is total cost of ownership rather than property age, with well-maintained older properties often outperforming new builds on net yield metrics.

What factors cause rental yields to fluctuate most significantly in Brisbane?

Vacancy rates represent the single most influential factor, with Brisbane's current sub-1% vacancy rate (approximately 0.8% citywide) driving strong rent growth and improved yields across all property types.

1. **Tenant demand drivers** that significantly impact yields: - Proximity to major transport hubs and CBD access - Walking distance to universities, hospitals, and major employers - Access to quality schools and family amenities - Lifestyle factors including cafes, parks, and entertainment precincts - Population growth in specific corridors and suburbs2. **Property-specific factors** affecting yield performance: - Overall condition and presentation of the property - Modern fixtures, fittings, and energy efficiency features - Parking availability and security features - Outdoor space quality (balconies, courtyards, gardens) - Storage and functional layout design3. **Market and regulatory influences** on yields: - Supply constraints from planning and development approvals - Interest rate movements affecting investor demand - Government policy changes including tax incentives - Infrastructure investment and transport improvements - Economic conditions affecting employment and population growth

What are the major ongoing expenses that reduce net yields in Brisbane?

Property management fees typically consume 6% to 8% of rental income, representing one of the largest controllable expenses for Brisbane investment properties.

Body corporate and strata fees can substantially impact unit investments, often reducing net yields from 5%+ gross to 2.5-3.5% net, making fee structures a critical evaluation factor.

Council rates and insurance represent unavoidable annual costs that vary significantly by property value and location, with inner-city properties generally facing higher rates.

Maintenance costs vary dramatically by property age and type, with older properties requiring more frequent repairs while newer properties may have warranty coverage but higher body corporate contributions.

It's something we develop in our Australia property pack.

What's the difference between gross and net yield for Brisbane investment properties?

Gross yield represents the total annual rental income divided by the property purchase price, without accounting for any expenses or costs.

**Brisbane apartment example (purchase price: $700,000, weekly rent: $650):****Gross yield calculation:**- Annual rental income: $650 × 52 weeks = $33,800- Gross yield: ($33,800 ÷ $700,000) × 100 = 4.83%**Net yield calculation with typical expenses:**- Property management fees: $2,700 (8% of rent)- Council rates: $2,500- Insurance: $1,200 - Maintenance and repairs: $2,000- Body corporate fees: $4,000- **Total annual expenses: $12,400****Net yield result:**- Net rental income: $33,800 - $12,400 = $21,400- Net yield: ($21,400 ÷ $700,000) × 100 = 3.1%

This example demonstrates how expenses can reduce returns by nearly 2 percentage points, highlighting the importance of factoring all costs into investment decisions.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Australia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

How do Brisbane rental yields compare with Gold Coast and Sunshine Coast markets?

Brisbane rental yields are generally on par with or slightly higher than neighboring coastal cities, offering competitive returns with superior tenant demand stability.

Gold Coast gross yields typically range from 4.2% to 4.8% for houses and 4.8% to 5.3% for units and townhouses, making Brisbane's yields comparable or slightly superior.

Sunshine Coast yields follow similar patterns to the Gold Coast, though generally slightly lower due to higher buy-in costs in premium lifestyle areas and seasonal rental fluctuations.

Brisbane's key advantage lies in its diversified economy and consistent tenant demand, providing more stable rental income compared to tourism-dependent coastal markets.

The capital city's lower vacancy rates and stronger employment growth typically translate to more reliable long-term yield performance than coastal alternatives.

What are current vacancy rates and how do they influence rental income?

Brisbane's citywide vacancy rate sits at approximately 0.8% as of September 2025, with some suburbs recording vacancy rates below 0.5%.

These exceptionally tight vacancy rates directly support rent increases of 10%+ year-on-year in many suburbs, particularly in central and lifestyle areas.

The low vacancy environment allows landlords to be more selective with tenants while maintaining premium rental rates and minimizing void periods between leases.

Sub-1% vacancy rates create a landlord's market where quality properties can command asking rents and achieve quick re-letting when tenants vacate.

This tight rental market directly translates to improved yields as rental income growth outpaces property price increases in many Brisbane suburbs.

How fast have rents and property values grown, and what does this mean for future yields?

Brisbane rental prices have increased by more than 10% year-on-year as of mid-2025, with particularly strong growth in central and lifestyle suburbs.

Property values have shown robust growth with houses increasing 6.2% and units rising 11.8% over the 12-month period, indicating strong market fundamentals.

The faster pace of rental growth compared to some property price increases has actually improved yields in certain market segments, particularly for units and apartments.

Future yield sustainability will depend on rental growth continuing to outpace property price increases and ongoing expense inflation, particularly body corporate and management fees.

It's something we develop in our Australia property pack.

What realistic returns can an investor expect from an average-priced property in high-demand suburbs?

An investor purchasing an average apartment for $710,000 in a popular, low-vacancy Brisbane suburb can expect gross annual rental income of approximately $33,800.

After accounting for typical expenses of $11,000 to $14,000 annually (including management, body corporate, and maintenance), net yields of 2.8% to 3.4% are realistic for unit investments.

Freestanding houses in high-demand areas typically deliver similar gross yields but often achieve lower net yields due to higher maintenance costs and council rates.

**Realistic return example for high-demand suburb investment:**- Purchase price: $710,000 (average apartment)- Weekly rent: $650- Annual gross income: $33,800- Annual expenses: $12,500- **Net annual return: $21,300 (3.0% net yield)**

These returns assume active property management and well-maintained properties in suburbs with strong tenant demand and low vacancy rates.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. OpenAgent Brisbane Property Market
2. BambooRoutes Brisbane Real Estate Trends
3. Sapphire Brisbane Best Rental Yield Property
4. Odin Mortgage Rental Yield Guide
5. Lane Property Brisbane Vacancy Rates
6. PropertyNXT Australia Brisbane Property
7. Calibre Real Estate Brisbane Rental Yields
8. Property Update Brisbane Growth Suburbs
9. OpenAgent Highest Rental Yield Suburbs
10. Calibre Real Estate Rental Yield Calculation