Victorian suburbs with high rental returns

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The suburbs in and around the CBD have the highest rental yields in Victoria, with some regional hot spots recording surprisingly high returns, according to the Real Estate Institute of Victoria (REIV).

Melbourne’s one-bedroom apartment market has the highest rental yield in the state. It is the most profitable for investors, recording a rental yield of 6.7%, according to REIV President Robyn Waters.

“Considering that you only need to outlay $347,500 to buy a one-bedroom apartment in the city, it is a great market for people to dip their toe into property investment and be confident of a tidy return of around $450 a week, “she said.

Some regional towns also have high rental yields, according to Waters.

Three-bedroom houses in Moe have a rental yield of 6.6%, while the same rentals in Stawell have a 6.4% return, she said.

The appeal to CDB workers, higher-education students and their families, and retirees contributed to the positive results in inner-city areas like Melbourne, Docklands, Southbank, and South Yarra, according to Waters.

Low rental vacancy rates likely contributed to regional towns’ strong performance, she said.

Here are the Victorian suburbs with the highest rental yields, according to REIV:

Suburb

Dwelling Type

Region

Gross Rental Yield

Weekly Median Rent (Jun 2019)

Median Price

(Jun 2019)

Melbourne

1-bedroom unit

Metro

6.7%

$450

$347,500

Moe

3-bedroom House

Regional

6.6%

$255

$200,000

Stawell

3-bedroom House

Regional

6.4%

$240

$193,750

Southbank

1-bedroom unit

Metro

6.2%

$445

$373,000

Melbourne

3-bedroom unit

Metro

6.2%

$950

$801,000

Shepparton

3-bedroom House

Regional

6.2%

$300

$251,000

Wodonga

3-bedroom House

Regional

6.0%

$325

$283,500

Mildura

3-bedroom House

Regional

5.7%

$320

$289,999

Morwell

3-bedroom House

Regional

5.7%

$200

$181,000

Churchill

3-bedroom House

Regional

5.6%

$200

$185,000

Sale

3-bedroom House

Regional

5.6%

$290

$270,000

Traralgon

3-bedroom House

Regional

5.6%

$300

$280,000

South Yarra

1-bedroom unit

Metro

5.5%

$400

$377,500

Warrnambool

3-bedroom House

Regional

5.5%

$350

$329,500

Docklands

2-bedroom unit

Metro

5.4%

$650

$630,000

Melbourne

2-bedroom unit

Metro

5.4%

$600

$575,000

Wangaratta

3-bedroom House

Regional

5.4%

$310

$299,000

Prahran

1-bedroom unit

Metro

5.3%

$390

$385,000

Richmond

1-bedroom unit

Metro

5.3%

$400

$393,500

Southbank

2-bedroom unit

Metro

5.2%

$580

$575,000

Source: REIV

 

Top Suburbs : rooty hill , thebarton , geelong west , kariong , cardiff south

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