Queensland town Dalby tops list of best locations for capital growth and cash flow, research finds

The Queensland town of Dalby has been named the top performer for property investors seeking strong capital growth and rising rental yields, according to new research from depreciation experts Washington Brown.

The Pulse report, powered by Hotspotting, identified the top 10 locations across the nation where investors can achieve the “Holy Grail” of high rental yields and capital growth prospects. Tyron Hyde, Director of Washington Brown, said the research demonstrated it is possible to find investment properties that offer both high capital growth and above-average rental yields in affordable locations with ultra-low vacancies and rising rents.

“One of the stand-out markets highlighted by this report is the Queensland town of Dalby, the key regional centre for the Western Downs region, west of Brisbane,” Mr Hyde said. “With vacancies near zero, rents have risen 24% in the past 12 months, with the median rental yield increasing from 6.6% to 7.2% in the past three months. Property values have also soared, with the median house price up 15% to $350,000 over the past year.”

According to Hotspotting Director Terry Ryder, Dalby serves as a centre for natural gas, coal, and power generation in the region, with these industries, as well as agriculture and manufacturing, contributing to the region’s economic growth and employment opportunities.

Other top performers identified in the report include Murray Bridge in South Australia, where house rents have risen 27% in the past year, and Armadale in Western Australia, where the median house price has lifted 31% to $420,000 in the past year while maintaining a high median rental yield of 6.3%.

Mr Hyde noted that investors in these locations are also benefiting from thousands of dollars in depreciation benefits each financial year. “In Murray Bridge, for example, investors could claim about $5,200 in depreciation benefits on the median-priced established house,” he said.

The report also highlighted strong performance in unit markets, with Bowen Hills in Queensland recording a 15% rise in median unit rent and a 7.1% increase in median unit price to $455,000 over the past quarter. Yorkeys Knob in Cairns also made the list, with unit rents increasing 11% in the past year and the median yield lifting to 6.5%.

Other locations making the top 10 include Balga in Western Australia, Woodridge in Queensland, Carey Park in Western Australia, Bundaberg South in Queensland, and Geraldton in Western Australia.