CEO Ben Handler shares his view on rental yields in Sydney
A jump in supply is expected by 2016-2017 but “after a long period of underdevelopment” in greater Sydney it’s likely there will continue to remain a shortage of homes overall.
While Sydney will continue to be the most under-supplied of all the capital cities after 2017, the market was “not ideal” for yield-focused investors, Cohen Handler chief executive Ben Handler said.
Rental yields in Sydney are not the least attractive in the country, at 3.45 per cent for houses and 4.11 per cent for apartments.
Investors are instead “moving into south-east Queensland” where rental returns average 4.9 per cent but higher yielding investment properties are available, he said.
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