The highest rental yields in each capital, for houses and for units
Gross rental yield compares the median advertised rent with the median asking price. Among suburbs with at least 20 rentals advertised, the highest yields for units are about 7% in Melbourne, Darwin and Perth and 5.4% in Brisbane. For houses, they run from 4.6% in Melbourne to 5.5% in Perth.
Gross rental yield is a year's rent as a share of the price: the median advertised weekly rent in a suburb, times 52, divided by the median asking price. Our yield lists rank every suburb in each capital on it, houses and units separately. This is what they show, for suburbs with at least 20 homes advertised for rent, so a handful of listings cannot put a suburb at the top.
| Houses: highest yield | Units: highest yield | |||
|---|---|---|---|---|
| Sydney | Fairfield Heights | 4.7% | Merrylands, Blacktown | 6.5% |
| Melbourne | Broadmeadows | 4.6% | Kensington | 7.5% |
| Brisbane | Woodridge | 4.9% | Brisbane City, Bowen Hills | 5.4% |
| Perth | Perth | 5.5% | Osborne Park | 7.0% |
| Adelaide | West Lakes | 4.9% | Adelaide | 5.5% |
| Hobart | West Moonah | 4.9% | too few | |
| Canberra | Bruce, Crace | 5.2% | Reid, Franklin | 6.7% |
| Darwin | Driver, Moulden | 5.4% | Parap | 7.4% |
Gross yield, among suburbs with at least 20 rentals advertised.
Units yield more than houses everywhere
In every capital with enough units to compare, the highest unit yield is above the highest house yield. Units cost less to buy, and their rents are not lower by as much. Gross yield leaves out strata fees, though, and those are higher for units.
Melbourne: the highest unit yields and the lowest house yields
Melbourne's top unit yields are in the inner north-west: Kensington (7.5%, $678 a week on a $472,000 median), Flemington (7.3%) and Parkville (7.0%), then Richmond (6.6%). Its highest house yield among suburbs with enough rentals is 4.6%, in Broadmeadows, then Braybrook (4.5%) and Meadow Heights (4.4%).
Brisbane: the lowest unit yields
Brisbane's best unit yields among suburbs with enough rentals are 5.4%, in Brisbane City ($800 a week on $778,000) and Bowen Hills, the lowest of the mainland capitals. Its house yields top out at 4.9% in Woodridge ($585 a week on $622,000), then Taigum (4.6%) and Runcorn (4.5%).
Sydney: the west for units
Sydney's highest unit yields are in the west: Merrylands (6.5%, $650 a week on $519,000, with 222 rentals advertised) and Blacktown (6.5%). For houses, the top among suburbs with enough rentals is Fairfield Heights at 4.7%, then Girraween and Bass Hill (4.4%).
Perth, Darwin and Canberra: the highest house yields
House yields are highest in Perth, Darwin and Canberra. In Perth the top is 5.5% for houses in the city itself and 7.0% for units in Osborne Park. In Darwin, units in Parap yield 7.4% and in Darwin City 6.7%. In Canberra, units in Reid and Franklin yield 6.7%.
How we measured
- Gross yield is the median advertised weekly rent times 52, divided by the median asking price, from recent listings in each suburb. The rent and the price come from different homes, so a suburb whose rentals are bigger or newer than the homes for sale will show a higher yield.
- Advertised rents are not the rents agreed on new leases. Where both can be compared, agreed rents were about 4% lower.
- Gross yield is before strata fees, council rates, management, insurance, maintenance and vacancy. This is general information, not financial advice.
- Lists include only suburbs with at least 20 homes advertised for rent in the period; the full lists, linked above, show every suburb that qualifies.