Checked back on the unit versus house yield gap I first wrote about last year, and it's held steady rather than narrowed the way I half expected it might once the broader market adjusted. Units are still delivering meaningfully stronger gross yields than houses across most of Brisbane.
With rates back up to 4.35%, that yield gap matters more now than it did during the low point of the cutting cycle last year. Financing is expensive again, and a property that generates more rental income relative to its purchase price is doing more of the work of covering that cost.
Apartment completions still haven't caught up to what the region needs, same story I've been tracking since 2023. Until that changes structurally, I don't see an obvious reason for this yield gap to close on its own.