- Yields were driven by scarcity in some Australian city centres
- Other desirable family locations also saw higher yields
- Sleepy outposts also saw high yields, potentially suggesting a seachange trend in the area
The suburbs with the highest rental yields may surprise you, including a veritable mix of CBD locations and suburbia, through to Australian cittaslows.
Strong demand and low vacancy rates are all factors that feed into creating high rental yield suburbs, with other factors including infrastructure development, supply restrictions, and rental market growth.
An economic downturn can push rental yields the other way, with other factors including an oversupplied market, rising interest rates, and more.
Top 20 highest rental yield suburbs in Australia
Rank | Postcode | Suburb | Yield | 1 year ago | 3 years ago |
1 | 0800 | Darwin | 7.70% | 9.60% | 5.50% |
2 | 0822 | Woolaning | 7.40% | 4.80% | 4.50% |
3 | 4006 | Fortitude Valley | 6.60% | 4.40% | 4.80% |
4 | 2601 | Canberra City | 6.50% | 6.50% | 3.80% |
5 | 0830 | Driver | 6.50% | 6.50% | 4.80% |
6 | 5256 | Point Sturt | 6.50% | 4.30% | 4.60% |
7 | 4106 | Rocklea | 6.40% | 3.40% | 4.10% |
8 | 6064 | Marangaroo | 6.20% | 5.40% | 4.80% |
9 | 5211 | Victor Harbour | 6.20% | 7.40% | 4.70% |
10 | 2900 | Greenway | 6.20% | 4.50% | 3.70% |
11 | 6123 | Whitby | 6.20% | 8.70% | 5.30% |
12 | 6031 | Banksia Grove | 6.20% | 5.90% | 5.40% |
13 | 6109 | Maddington | 6.10% | 5.10% | 4.90% |
14 | 6061 | Westminster | 6.00% | 5.60% | 5.00% |
15 | 5355 | Ebenezer | 5.90% | 4.40% | 4.70% |
16 | 6170 | Wellard | 5.90% | 5.70% | 4.90% |
17 | 5012 | Woodville North | 5.90% | 4.80% | 5.00% |
18 | 5168 | Old Noarlunga | 5.90% | 4.90% | 5.70% |
19 | 5214 | Goolwa | 5.90% | 5.40% | 4.20% |
20 | 6066 | Ballajura | 5.90% | 7.00% | 4.90% |
Source: SQM Research. N.B. This list uses SQM Research data for rental yields, filtered for capital cities only.
What is rental yield?
In a nutshell, rental yield is the comparison between rental income compared to the cost of investment, property value, or purchase price (the words are sometimes used interchangeably). The rental yield is typically expressed as a percentage of the property value.
Darwin
The best rental yield in Australia, at the time of writing, is in Darwin, 0800. While it is down from last year, the Northern Territory capital has Australia’s highest rental yield at 7.70%.
Since 2022, weekly asking rents in the suburb have displayed noticeable fluctuations. In 2021, rents escalated from approximately $500 to $600 per week to over $850 per week during the latter half of 2022, according to SQM data.
Following a brief period of stability, rents plummeted to below $700 and have oscillated between these extremes ever since. Currently, the latest recorded rent stands at $662 per week.
Rental yields for 0800
Woolaning
Located about 1.5 hours out of Darwin, the locality has seen yields nearly double from previous years.
Rental yields for 0822
Fortitude Valley
Barely three kilometres out of the Brisbane CBD, Fortitude Valley is located northeast of the city’s heart.
The area is renowned for its nightlife and is home to several cultural institutions.
According to realestate.com.au, median rents in the area are $520 per week for houses and $490 per week for units. House rents have dropped over 30% over the past twelve months, while unit rents have risen almost 13%.
Rental yields for 4006
Canberra City
The heart of Australia’s capital predominantly comprises renters, with Domain data showing 69% of the suburb is home to renters.
Median rental price for units in the suburb is $640 per week, according to realestate.com.au, with weekly asking rents (a different measure to median rents) just north of $700, according to SQM data.
Rental yields for 2601
Driver
Another Northern Territory location, the suburb is located half an hour east of Darwin.
Rental yields for 0830
Point Sturt
Located 1.5 hours south of Adelaide, the suburb is close to Lake Alexandria.
Rental yields for 5256
Rocklea
Half an hour south of the Brisbane CBD, the suburb is close to Archerfield Airport. According to Domain data, the suburb is largely home to a younger population, with the average age between 20 and 39. It also comprises two-thirds singles, as compared to family, with a little less than half the suburb comprising renters (46%).
Rental yields for 4106
Marangaroo
A slice of Perth suburbia, this locale is about half an hour north of the Perth CBD. It has excellent access to both Perth and Joondalup CBDs, with greenspace a stone’s throw north or east, including a Yellagonga Regional Park and Whiteman Park.
Rental yields for 6064
Victor Harbour
Just over an hour south of Adelaide, the suburb is home to the Granite Island Recreation Park and Victor Harbour Horse Drawn Tramway.
Rental yields for 5211
Greenway
Half an hour south of Canberra, the suburb is close to Lake Tuggeranong, and the border with New South Wales.
According to Domain, the suburb is an almost fifty-fifty split between owners and renters, with singles comprising 55%, and families 45%.
Rental yields for 2900
Whitby
An hour south of Perth, close to locales such as Rockingham and Jarrahdale, weekly asking rents for the suburb are floating between $400 and $600.
Rental yields for 6123
Banksia Grove
A stone’s throw from Joondalup, the northern suburb of Banksia Grove largely comprises owner-occupiers, with Domain data showing only 23% of the suburb are renters.
Median rental price, according to REIWA, is $550 per week, with rental growth up over 22%.
Rental yields for 6031
Maddington
Located in Perth’s east, weekly rents in the suburb have been steadily climbing since a market trough around 2018. The latest from SQM shows house rentals around $500 per week, with units close behind at $450 per week.
Rental yields for 6109
Westminster
Previously part of the suburb of Balga, Westminster weekly rents for both houses and units are floating around the $500 mark, according to SQM data.
Rental yields for 6061
Ebenezer
One hour northeast of Adelaide, the asking rents for houses are around $500 per week, according to SQM.
Rental yields for 5355
Wellard
Asking rents for the suburb are also around the $500 mark, according to SQM.
Rental yields for 6170
Woodville North
Located a stone’s throw from Port Adelaide, weekly rents in the area are between $500 and $600 per week, according to SQM.
Rental yields for 5012
Goolwa
The cittaslow of Goolwa is a sleepy locale south of Adelaide.
Rental yields for 5214
Ballajura
The suburb is some half an hour north of Perth and enjoys excellent amenities, including a local shopping centre, recreational centre with pool, and close proximity to major and arterial roads such as Alexander Drive, Tonkin Highway, Hepburn Avenue, and the upcoming Metronet train line.
Rental yields for 6066
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This article seeks to provide general information only. See our Terms of Use. Information may also be skewed as a result of maths, principally driven by smaller stock levels compared to the magnitude of change.