Rental yields are showing modest improvement says the managing director of Rismark International, Ben Skilbeck.
“Rental yields for houses across the combined capital cities have moved from just 3.6 per cent eighteen months ago to 4.1 per cent and gross yields on unit dwellings have improved from a recent low of 4.4 per cent to 4.8 per cent.”
According to RP Data figures, Darwin recorded the best results with gross rental yield for houses at 5.7 per cent and units at 5.9 per cent.
“The most significant rental yield improvements have been recorded in Darwin, Perth and Brisbane where yields have increased by 22 per cent, 21 per cent and 18 per cent respectively from their recent lows,” said Mr Skilbeck.
The capital with lowest rental yield was Melbourne with 3.6 per cent for houses and 4.3 per cent for units, which isn’t expected to see any significant change for some time.
CEO of WBP Property Group, Greville Pabst said “Yields will stay fairly consistent as property prices and rents track similar growth in 2012. In units, rents are not growing as fast because there is an increase in stock.”