Highest-yielding suburbs in Australia’s capital cities revealed
With national rents surging at the fastest pace in 14 years, certain areas are performing much better than others as rental yields stagnate across the country.
Despite a record growth in rents over the last quarter, national rental yields compressed to 3.55 per cent as dwelling values rose by a remarkable 2.8 per cent over the month of March, CoreLogic’s Rental Review for the March 2021 quarter revealed.
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While gross yields across regional markets remained higher than those in the capital cities, both suffered noticeable declines in the first quarter, with yields across the combined capitals dropping from 3.42 per cent in the December quarter to 3.25 per cent in March, and from 4.83 per cent to 4.69 per cent in the regional markets.
In fact, yields were lower compared with the December quarter in all capital cities except for Adelaide and Darwin.
According to CoreLogic, gross rental yields were recorded at 2.74 per cent in Sydney, 2.92 per cent in Melbourne, 4.28 per cent in Brisbane, 4.31 per cent for Adelaide, 4.40 per cent in Perth, 4.50 per cent in Hobart, 6.21 per cent in Darwin and 4.43 per cent in Canberra.
Looking at the top-yielding suburbs across each city, Millers Point topped Sydney’s property market with a gross rental yield of 7.5 per cent for houses, followed by Gorokan on 5.0 per cent for units.
In Melbourne, the top-performing suburb was Carlton on 5.1 per cent for units, while Brisbane’s Waterford West clocked a gross yield of an impressive 8.8 per cent.
Adelaide’s Elizabeth North stood strong at 7.8 per cent, while Perth’s Orelia helped unit investors clock 8.9 per cent.
Darwin’s Parap also showed strong results in the unit market, with gross rental yields at 8.5 per cent, while units in Canberra’s Curtin saw their gross yield hit 6.7 per cent.
Overall, CoreLogic tipped that if dwelling growth remains strong and continues to outpace rental value growth, rental yields will likely compress further over the coming months and quarters.
Sydney
|
Suburb - Region |
Property type |
Gross rental yield |
Median rent |
Quarterly change in median rent |
|
Millers Point (Sydney - City and Inner South) |
Houses |
7.5% |
$1,023 |
8.3% |
|
Gorokan (Central Coast) |
Units |
5.0% |
$383 |
4.9% |
|
North Gosford (Central Coast) |
Units |
4.9% |
$450 |
4.8% |
|
West Gosford (Central Coast) |
Units |
4.9% |
$455 |
4.8% |
|
Gosford (Central Coast) |
Units |
4.9% |
$449 |
5.2% |
Melbourne
|
Suburb - Region |
Property type |
Gross rental yield |
Median rent |
Quarterly change in median rent |
|
Carlton (Melbourne - Inner) |
Units |
5.1% |
$378 |
0.3% |
|
Melton (Melbourne - West) |
Units |
4.9% |
$314 |
1.0% |
|
Roxburgh Park (Melbourne - North West) |
Units |
4.9% |
$372 |
1.0% |
|
Wallan (Melbourne - North East) |
Units |
4.8% |
$339 |
0.5% |
|
Travancore (Melbourne - Inner |
Units |
4.8% |
$363 |
-2.2% |
Brisbane
|
Suburb - Region |
Property type |
Gross rental yield |
Median rent |
Quarterly change in median rent |
|
Waterford West (Logan - Beaudesert) |
Units |
8.8% |
$303 |
2.6% |
|
Woodridge (Logan - Beaudesert) |
Units |
8.6% |
$281 |
1.9% |
|
Logan Central (Logan - Beaudesert) |
Units |
8.3% |
$272 |
1.4% |
|
Slacks Creek (Logan - Beaudesert) |
Units |
8.2% |
$3012 |
2.0% |
|
Kingston (Logan - Beaudesert) |
Units |
7.6% |
$331 |
2.4% |
Adelaide
|
Suburb - Region |
Property type |
Gross rental yield |
Median rent |
Quarterly change in median rent |
|
Elizabeth North (Adelaide - North) |
Houses |
7.8% |
$291 |
2.0% |
|
Elizabeth South (Adelaide - North) |
Houses |
7.5% |
$296 |
3.0% |
|
Elizabeth Downs (Adelaide - North) |
Houses |
7.3% |
$301 |
2.2% |
|
Davoren Park (Adelaide - North) |
Houses |
7.3% |
$291 |
2.3% |
|
Salisbury (Adelaide - North) |
Units |
7.3% |
$290 |
0.7% |
Perth
|
Suburb - Region |
Property type |
Gross rental yield |
Median rent |
Quarterly change in median rent |
|
Orelia (Perth - South West) |
Units |
8.9% |
$239 |
7.4% |
|
Kelmscott (Perth - South East) |
Units |
7.9% |
$294 |
5.5% |
|
Armadale (Perth - South East) |
Units |
7.7% |
$293 |
6.0% |
|
Gosnells (Perth - South East) |
Units |
7.3% |
$308 |
3.8% |
|
Queens Park (Perth - South East) |
Units |
7.2% |
$362 |
6.5% |
Darwin
|
Suburb - Region |
Property type |
Gross rental yield |
Median rent |
Quarterly change in median rent |
|
Parap (Darwin) |
Units |
8.5% |
$457 |
7.3% |
|
Bakewell (Darwin) |
Units |
8.3% |
$367 |
6.0% |
|
Woolner (Darwin) |
Units |
7.8% |
$506 |
7.3% |
|
Darwin (Darwin) |
Units |
7.8% |
$523 |
7.6% |
|
Johnston (Darwin) |
Units |
7.7% |
$421 |
6.4% |
Canberra
|
Suburb - Region |
Property type |
Gross rental yield |
Median rent |
Quarterly change in median rent |
|
Curtin (ACT) |
Units |
6.7% |
$408 |
4.6% |
|
Lyons (ACT) |
Units |
6.5% |
$450 |
2.1% |
|
Gungahlin (ACT) |
Units |
6.4% |
$473 |
3.0% |
|
Wright (ACT) |
Units |
6.4% |
$505 |
3.1% |
|
Phillip (ACT |
Units |
6.1% |
$472 |
2.7%
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