Miles heads Queensland's top 20 house yield locations with Brisbane suburbs missing the cut

There are more than 100 postcodes in Queensland with yields above 5% for houses, according to the Real Estate Institute of Queensland.

Yields are particularly firm in mining locations and those with affordable housing, it found in its latest gross rental yield report.

“Our property market has turned a corner over the past six months, and these robust yields reflect that sales prices had yet to fully rebound in the December quarter last year but rents had definitely increased,” REIQ chief executive Anton Kardash says.

“This year, there continues to be strong demand for rental properties from tenants which in turn is driving activity from investors.

“REIQ analysis of Australian Bureau of Statistics (ABS) housing finance data found that the number of investors in the Queensland property market in February had increased more than 10% compared to January this year.”

The highest yields for houses are found in Miles, at 9.3%. In the Western Downs region, Miles forms part of the Surat Basin Energy Province. According to RP Data, median prices in the area increased 17.5% in the last year.

The town was initially called Dogwood Crossing by explorer Ludwig Leichhardt who passed through the district on three expeditions. It was later renamed Miles in honour of a local member of parliament.

In March, Terry Ryder pegged Miles as one of the Surat Basin towns which will continue to grow.

"They all had double-digit price increases last year and will continue to show more," he says.

One of the cheapest houses listed on online real estate portals is 13 Daisy Street. The three bedroom house on 809 square metres is listed at $280,000. The sales campaign started at $350,000 in December last year.

A new four bedroom house on 2514 square metres at Lot 20 Vowles Road is listed for sale at $525,000. It advertises an unfurnished rent of $725 a week and a furnished rent of $1200 per week. The unfurnished rent would give a potential gross yield of 7.18%.

There are a number of off-the-plan housing developments being marketed, variously promising returns of around 9%.

Number two were Russell and Macleay islands at 9%. The Brisbane Bay islands boast plenty of affordable houses and a healthy rental market.

Number three was Mount Morgan at 8.7%. It is in the Rockhampton local government area, which features many affordable properties.

There were no Brisbane suburbs in the top 20. Brisbane first makes an appearance on the list at number 24 with the outer-southwest suburbs Durack and Inala at 6.2%.

The REIQ gross rental yields use weighted median rents and sale prices to derive yields, which is the annual income earned from a tenanted property divided by the purchase price.