The suburbs in and around the CBD have the highest rental yields in Victoria, with some regional hot spots recording surprisingly high returns, according to the Real Estate Institute of Victoria (REIV).
Melbourne’s one-bedroom apartment market has the highest rental yield in the state. It is the most profitable for investors, recording a rental yield of 6.7%, according to REIV President Robyn Waters.
“Considering that you only need to outlay $347,500 to buy a one-bedroom apartment in the city, it is a great market for people to dip their toe into property investment and be confident of a tidy return of around $450 a week, “she said.
Some regional towns also have high rental yields, according to Waters.
Three-bedroom houses in Moe have a rental yield of 6.6%, while the same rentals in Stawell have a 6.4% return, she said.
The appeal to CDB workers, higher-education students and their families, and retirees contributed to the positive results in inner-city areas like Melbourne, Docklands, Southbank, and South Yarra, according to Waters.
Low rental vacancy rates likely contributed to regional towns’ strong performance, she said.
Here are the Victorian suburbs with the highest rental yields, according to REIV:
|
Suburb |
Dwelling Type |
Region |
Gross Rental Yield |
Weekly Median Rent (Jun 2019) |
Median Price (Jun 2019) |
|
1-bedroom unit |
Metro |
6.7% |
$450 |
$347,500 |
|
|
3-bedroom House |
Regional |
6.6% |
$255 |
$200,000 |
|
|
3-bedroom House |
Regional |
6.4% |
$240 |
$193,750 |
|
|
1-bedroom unit |
Metro |
6.2% |
$445 |
$373,000 |
|
|
3-bedroom unit |
Metro |
6.2% |
$950 |
$801,000 |
|
|
3-bedroom House |
Regional |
6.2% |
$300 |
$251,000 |
|
|
3-bedroom House |
Regional |
6.0% |
$325 |
$283,500 |
|
|
3-bedroom House |
Regional |
5.7% |
$320 |
$289,999 |
|
|
3-bedroom House |
Regional |
5.7% |
$200 |
$181,000 |
|
|
3-bedroom House |
Regional |
5.6% |
$200 |
$185,000 |
|
|
3-bedroom House |
Regional |
5.6% |
$290 |
$270,000 |
|
|
3-bedroom House |
Regional |
5.6% |
$300 |
$280,000 |
|
|
1-bedroom unit |
Metro |
5.5% |
$400 |
$377,500 |
|
|
3-bedroom House |
Regional |
5.5% |
$350 |
$329,500 |
|
|
2-bedroom unit |
Metro |
5.4% |
$650 |
$630,000 |
|
|
2-bedroom unit |
Metro |
5.4% |
$600 |
$575,000 |
|
|
3-bedroom House |
Regional |
5.4% |
$310 |
$299,000 |
|
|
1-bedroom unit |
Metro |
5.3% |
$390 |
$385,000 |
|
|
1-bedroom unit |
Metro |
5.3% |
$400 |
$393,500 |
|
|
2-bedroom unit |
Metro |
5.2% |
$580 |
$575,000 |
Source: REIV
