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Highest-yielding suburbs in Australia’s capital cities revealed

By Bianca Dabu 27 April 2021 | 1 minute read

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.

Highest-yielding suburbs in Australia’s capital cities revealed

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. 

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 PerthPerth, TAS Perth, WA, 4.50 per cent in Hobart, 6.21 per cent in Darwin and 4.43 per cent in Canberra.

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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 CarltonCarlton, VIC Carlton, NSW Carlton, TAS 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%

KingstonKingston, QLD Kingston, ACT Kingston, TAS (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%

SalisburySalisbury, SA Salisbury, QLD (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%

ArmadaleArmadale, WA Armadale, VIC (Perth - South East)

Units

7.7%

$293

6.0%

Gosnells (Perth - South East)

Units

7.3%

$308

3.8%

Queens ParkQueens Park, NSW Queens Park, WA (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%

About the author

Highest-yielding suburbs in Australia’s capital cities revealed
Highest-yielding suburbs in Australia’s capital cities revealed
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