New data has revealed that house rental yields have declined in seven of Australia’s eight capital cities.
A rental report recently released by Domain has shown that all Australian capitals, with the exception of Hobart, have experienced a year-on-year drop in gross rental yields for houses.
Sydney experienced the most severe decline in house yields, falling 11.6 per cent to 3.3 per cent, the lowest recorded yield out of all the capitals.
Darwin saw the next biggest decline in house yields, down 10.8 per cent to 4.64 per cent.
Melbourne’s house yields dropped 5.7 per cent to 3.73 per cent.
Perth followed, falling 5.0 per cent to a gross rental yield of 4.33 per cent.
Brisbane recorded a decline of 3.2 per cent, reducing the yield to 4.83 per cent.
Canberra’s house yields fell 1.8 per cent to 4.39 per cent.
Adelaide saw the smallest decline, falling 0.1 per cent to 4.72 per cent.
Hobart was the only city that experienced growth in rental yields, increasing 2.8 per cent to 5.63 per cent – the highest rental yield of any capital city.
Domain chief economist Andrew Wilson said gross rental yields for investors remained relatively steady over the March quarter, reflecting ongoing subdued price outcomes in most capitals.