The best yield in units and apartments in Melbourne

Melbourne rental yield market with unitsHigher density housing is often viewed as an investment opportunity but like all property the outcome depends heavily on a range of factors.

This is apparent when the suburbs of Melbourne are ranked by their indicative gross yield over the past year for units. Using the RP Data Scorecard, the data applies to the year ending September and only includes suburbs with at least 500 dwelling to reduce variability.

Inner city Carlton tops the list with a yield of 6.9 per cent. The neighbouring CBD is fourth on the list with a strong 5.9 per cent which underscores why demand from investors is helping to drive the inner city high rise market.
Carlton has a lower rent than the CBD with a median asking price of $360 compared to $450.

The other three suburbs in the top 5 are at the more affordable end of the market from the perspective of median asking rents but still provide healthy yields. Broadmeadows has a median rent of $310 per week and a yield of 6 per cent, Melton a median rent of $255 and yield of 5.8 per cent. Neighbouring Melton South a median rent of $240 and yield of 5.6 per cent has been recorded.

Does this make these suburbs good investment opportunities? That really depends on the actual property on offer and whether you are seeking a high weekly rent or a larger capital gain.

Robert Larocca
RP Data Victoria Housing Market Specialist

About Robert Larocca

Robert Larocca has built a profile over the past eight years as an expert on the Victorian residential property market. He worked for the REIV both directly and as a consultant over 8 years acting as a spokesperson, managing its research department and public policy. He has been a media and government relations consultant and spent a decade working across the three levels of government including as a Councillor and Mayor in the City of Moreland. He has well developed leadership skills in the not for profit sector and has been the Chairperson of CERES Community Environment Park for 9 years.

Connect with CoreLogic

Enter your email address to subscribe to our e-newsletter, and have new posts delivered via email. You can also connect with CoreLogic on social media.

No comments yet.

Leave a Reply

Notify me of followup comments via e-mail. You can also subscribe without commenting.