Australia’s worst rental yields

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Are you unhappy with the rental yield that your investment property is bringing in? Spare a thought for the landlords in these suburbs, where average gross rental yields are as low as a paltry 1.5%.

Your Investment Property has delved into the February data from RP Data to expose the nation’s suburbs with the lowest average gross rental yields, and can reveal that the worst yielding suburb on the list – Portsea houses (Vic) – yields an average of just 1.5%.

Perhaps Portsea’s median house price of almost $1.6m has something to do with its worryingly low gross rental yield figure. In fact, nine of the top 10 worst suburbs for gross rental yields have median prices of over $1m – with second placed Tamarama (NSW) topping the scales at over $4.3m. The only suburb in the top 10 not to top the $1m mark is Quindalup (WA), whose median house price isn’t too far off millionaire’s row at $910,000.

 Read on for the 10 worst yielding suburbs in Australia.

State

Suburb

Type

Median Price

Average Annual Growth

Weekly Median Advertised Rent ($)

Gross Rental Yield

VIC

PORTSEA

H

$1,674,000

17.3%

490

1.5%

NSW

TAMARAMA

H

$4,337,500

26.6%

1295

1.6%

VIC

MONT ALBERT

H

$1,255,000

10.6%

430

1.8%

NSW

KIRRIBILLI

H

$1,900,000

6.3%

683

1.9%

QLD

SURFERS PARADISE

H

$1,320,000

11.9%

500

2.0%

WA

DALKEITH

H

$2,325,000

12.1%

900

2.0%

WA

QUINDALUP

H

$910,000

24.4%

360

2.1%

VIC

IVANHOE

H

$1,120,000

10.3%

450

2.1%

NSW

CONNELLS POINT

H

$1,190,000

7%

500

2.2%

VIC

BALWYN

H

$1,398,000

-6%

595

2.2%

Source: RP Data, February 2012

Looking at the 10 worst yielding suburbs in each state and territory, it’s evident that some fare far better than others. The Northern Territory, for example, doesn’t have a single suburb with a gross rental yield of less than 4%, according to RP Data figures. The ACT and Tasmania, too, are some of the better performers, with neither state showing a suburb with a gross rental yield of less than 3%.

At the other end of the scale, the worst performing 10 suburbs for gross rental yields in Victoria and NSW barely break the 2% mark, according to RP Data figures.

Read on for the full rundown of the 10 worst performing suburbs for rental yields in each state and territory. 

State

Suburb

Type

Median Price

Average Annual Growth

Weekly Median Advertised Rent ($)

Gross Rental Yield

ACT

TURNER

H

$945,000

7.9%

550

3.0%

ACT

BRADDON

H

$870,000

n.a

550

3.3%

ACT

GRIFFITH

H

$1,04,0000

8.2%

675

3.4%

ACT

YARRALUMLA

H

$1,000,000

8.4%

695

3.6%

ACT

O'CONNOR

H

$750,000

10.5%

540

3.7%

ACT

GARRAN

H

$832,500

9.1%

600

3.7%

ACT

ARANDA

H

$780,000

11.4%

563

3.8%

ACT

HUGHES

H

$750,000

9.5%

545

3.8%

ACT

LYONS

H

$645,000

11.1%

470

3.8%

ACT

RED HILL

H

$1,135,000

9.1%

850

3.9%

NSW

TAMARAMA

H

$4,337,500

26.6%

1295

1.6%

NSW

KIRRIBILLI

H

$1,900,000

6.3%

683

1.9%

NSW

CONNELLS POINT

H

$1,190,000

6.9%

500

2.2%

NSW

POINT FREDERICK

H

$917,500

10.9%

393

2.2%

NSW

STRATHFIELD

H

$1,380,000

7.5%

595

2.2%

NSW

DOUBLE BAY

H

$2,920,000

9.2%

1300

2.3%

NSW

BURWOOD

H

$1,234,750

7.6%

550

2.3%

NSW

BELLEVUE HILL

H

$3,300,000

7.1%

1475

2.3%

NSW

KILLCARE

H

$775,000

n.a

350

2.3%

NSW

PALM BEACH

H

$1,837,500

8.1%

855

2.4%

NT

PARAP

H

$840,000

23.2%

690

4.3%

NT

NIGHTCLIFF

H

$690,000

10.6%

600

4.5%

NT

STUART PARK

H

$670,000

10.5%

600

4.7%

NT

FANNIE BAY

U

$495,000

12.4%

450

4.7%

NT

RAPID CREEK

H

$615,000

12.2%

560

4.7%

NT

PARAP

U

$490,000

15.3%

450

4.8%

NT

MILLNER

H

$520,000

13.7%

488

4.9%

NT

HOWARD SPRINGS

H

$605,500

15.2%

570

4.9%

NT

MALAK

H

$500,000

10.9%

475

4.9%

NT

MOIL

H

$530,000

11.6%

505

5.0%

QLD

SURFERS PARADISE

H

$1,320,000

11.9%

500

2.0%

QLD

MERMAID BEACH

H

$950,000

7.5%

440

2.4%

QLD

NEW FARM

H

$1,200,000

13.9%

575

2.5%

QLD

PARADISE POINT

H

$1,000,000

12.6%

500

2.6%

QLD

SUNSHINE BEACH

H

$994,000

11.2%

500

2.6%

QLD

SHELLY BEACH

H

$707,500

16.4%

365

2.7%

QLD

CLAYFIELD

H

$890,500

10.0%

465

2.7%

QLD

SHORNCLIFFE

H

$685,000

9.9%

380

2.9%

QLD

HIGHGATE HILL

H

$865,000

10.4%

483

2.9%

QLD

MONTVILLE

H

$670,000

18%

380

2.9%

SA

ROSE PARK

H

$1,220,000

10.7%

560

2.4%

SA

NORTH ADELAIDE

H

$1,021,000

12.7%

488

2.5%

SA

KENSINGTON PARK

H

$830,000

11.6%

418

2.6%

SA

HENLEY BEACH

U

$555,000

16.7%

283

2.6%

SA

SAINT PETERS

H

$881,250

11.4%

450

2.7%

SA

BRIGHTON

H

$741,500

11.3%

385

2.7%

SA

MITCHAM

H

$780,000

12.0%

405

2.7%

SA

FLINDERS PARK

U

$542,500

24.8%

290

2.8%

SA

HAWTHORN

H

$741,000

7.7%

400

2.8%

SA

MYRTLE BANK

H

$735,000

-4%

400

2.8%

TAS

EAST LAUNCESTON

H

$506,000

15.8%

330

3.4%

TAS

ORFORD

H

$320,500

15.0%

225

3.7%

TAS

SANDY BAY

H

$637,500

10.5%

460

3.8%

TAS

TREVALLYN

U

$290,000

8.6%

210

3.8%

TAS

SNUG

H

$395,000

14.6%

288

3.8%

TAS

BATTERY POINT

H

$685,000

13.9%

500

3.8%

TAS

BURNIE

U

$220,000

n.a

163

3.8%

TAS

KETTERING

H

$469,500

16.1%

350

3.9%

TAS

TRANMERE

H

$542,000

12.4%

420

4.0%

TAS

MOUNT NELSON

H

$502,250

12.5%

390

4.0%

VIC

PORTSEA

H

$1,674,000

17.3%

490

1.5%

VIC

MONT ALBERT

H

$1,255,000

10.6%

430

1.8%

VIC

IVANHOE

H

$1,120,000

10.3%

450

2.1%

VIC

IVANHOE EAST

H

$1,310,000

10.4%

550

2.2%

VIC

BALWYN

H

$1,398,000

11.1%

595

2.2%

VIC

ARMADALE

H

$1,505,500

10.1%

650

2.2%

VIC

KEW EAST

H

$1,190,000

10.5%

518

2.3%

VIC

QUEENSCLIFF

H

$722,500

10.3%

315

2.3%

VIC

TOORAK

H

$2,400,000

7.4%

1050

2.3%

VIC

ABERFELDIE

H

$960,000

11.5%

425

2.3%

WA

DALKEITH

H

$2,325,000

12.1%

900

2.0%

WA

QUINDALUP

H

$910,000

24.4%

360

2.1%

WA

NEDLANDS

H

$1,550,000

12.3%

700

2.3%

WA

AUGUSTA

H

$485,000

12.5%

230

2.5%

WA

MIDDLETON BEACH

H

$615,000

n.a

300

2.5%

WA

WATERMANS BAY

H

$1,225,000

n.a

615

2.6%

WA

SOUTH PERTH

H

$1,150,000

12.3%

580

2.6%

WA

SWANBOURNE

H

$1,375,000

11.8%

700

2.6%

WA

NORTH BEACH

H

$1,055,000

14.5%

550

2.7%

WA

BICTON

H

$900,000

12.1%

480

2.8%

Source: RP Data, February 2012

How do you think the rental market is performing? Have your say on our property investment forum.

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