Darwin is offering investors the strongest rental yields, while Melbourne’s rental returns are lagging, new research has shown.
Although property prices in the Top End appear to be in the correction phase, with the Northern Territory capital recording the worst performance for dwelling values in February (-9 per cent), yields on rental properties in Darwin are the highest of the nation’s capitals, according to RP Data and Rismark.
Investors in Darwin are looking at gross yields of 5.7 per cent the data providers said today; with 5.5 per cent for houses and 5.8 per cent for units.
Canberra, Sydney and Brisbane are also offering yields greater than five per cent with a yield of 5.3 per cent in the nation’s capital and 5.1 per cent in both the New South Wales and Queensland capitals.
Melbourne, in contrast, is offering investors gross rental yields of just 4.2 per cent.