Rental yield is the rental return potential for property based on the amount of investment — the higher the rental yield, the higher the returns received based on initial investment costs.
Property sale prices in Victoria have stayed relatively stagnant (-1.9% annual change, CoreLogic, 1 November 2024) in comparison to other states like Queensland (+12.14% annual change, REIQ) for 2024. However, rental prices in Victoria have continued to grow with an annual growth rate of 10.2% since June 2023. For investors looking to capitalise on rental investment opportunities, we’ve collated a list of the 10 highest performing Victorian suburbs in terms of rental yield.
Ouyen, 3490
Ouyen is a town located in the Rural City of Mildura, 105 km from the Mildura city centre. Serving as the main transport and commercial centre for the region’s grain farming industry, Ouyen has a considerable demand for housing due to the rise of workers moving to the region for agricultural work. Investors can expect a median rental yield of 8.7% for homes in Ouyen.
Median house price: $226,000 (+20.7% from Nov – Oct 2024)
Median weekly rent: $320 (No change from Nov – Oct 2024)
Median rental yield: 8.7%
Carlton, 3053
Carlton is an inner-city suburb that is 3km from the Melbourne city centre. The suburb offers close proximity to the RMIT CBD campus, University of Melbourne, and the Australian Catholic University’s Fitzroy campus. The vast majority of housing in Carlton is in the form of apartments (80.7%) catering to student demand.
Median unit price: $410,000 (+5.7% from Nov – Oct 2024)
Median weekly rent: $550 (+10.0% from Nov – Oct 2024)
Median rental yield: 7.5%
Notting Hill, 3168
The suburb of Notting Hill is located 19km southeast of the Melbourne CBD. A quiet suburb with a tightly-knit local community, Notting Hill’s great accessibility to modern amenities and educational institutions (notably Monash University) make it a popular option for young families, professionals, and students. For investors, apartment accommodation offers a standout median rental yield of 6.9% as well as an upward trend for weekly rental prices.
Median unit price: $347,500 (-5.6% from Nov – Oct 2024)
Median weekly rent: $520 (+18.2% from Nov – Oct 2024)
Median rental yield: 6.9%
Melbourne, 3000
While rental yield is generally better in regional areas, the Melbourne city centre has continued to offer high rental yields for investors in terms of apartment units. As the central metropolitan location in Victoria, residents enjoy easy access to the rest of the city and the comforts of modern living.
Median unit price: $577,300 (+6.9% from Nov – Oct 2024)
Median weekly rent: $640 (+6.7% from Nov – Oct 2024)
Median rental yield: 6.9%
Warracknabeal, 3393
Warracknabeal is 330km northwest of Melbourne city, serving as the business centre for the Wimmera Southern Mallee region. Amenities in the town include a local hospital, Rural Northwest Health, as well as four schools. Despite relatively low house prices of $200,00, Warracknabeal boasts a high median rental yield of 6.8%.
Median house price: $200,000 (- 15.8% from Nov – Oct 2024)
Median weekly rent: $315 (-1.6% from Nov – Oct 2024)
Median rental yield: 6.8%
Travancore, 3032
Travancore is located 5km from the Melbourne CBD and offers quick access to the city via a 7-min tram ride. The area has recently seen a shift in housing development to include new apartment housing to meet the rising demand from city professionals and university students. Like the Melbourne CBD, Travancore’s ability to offer investors high rental yields is due to the current relationship between property prices and rising rent in the city.
Median unit price: $361,000 (+6.2% from Nov – Oct 2024)
Median weekly rent: $520 (+9.5% from Nov – Oct 2024)
Median rental yield: 6.8%
Merbein, 3505
Mebein is a regional town 12km northwest of the Rural City of Mildura and 553 km northwest of Melbourne. Best known as the region’s fruit/food bowl, Mebein is primarily involved in agriculture and the supply of grown produce to the rest of Australia. Similar to Ouyen, demand for housing in Merbein is driven by immigrating workers that can fluctuate based on seasonality.
Median house price: $335,000 (+13.6% from Nov – Oct 2024)
Median weekly rent: $350 (No change from Nov – Oct 2024)
Median rental yield: 6.6%
Stawell, 3380
The town of Stawell lies 237km away from Melbourne city, and is one of the few remaining towns in Victoria that still have an active gold mining industry. Houses in Stawell have a median price of $315,000 and a rental yield of 6.2%, and offer residents the main benefit of living in a small town community with plenty of open space.
Median house price: $315,000 (-6.7% from Nov – Oct 2024)
Median weekly rent: $380 (+8.6% from Nov – Oct 2024)
Median rental yield: 6.2%
Seymour, 3660
Seymour is located 104 kilometres north of Melbourne, offering a scenic regional living environment for residents. Seymour has two local centres – the Seymour Town Centre
and the Anzac Avenue Local Centre, both of which offer retail and dining options for locals. Seymour is also home to the southern end of the Goulburn Valley wine region, with several wineries in and near the township.
Median unit price: $250,000 (-20.0% from Nov – Oct 2024)
Median weekly rent: $350 (+11.1% from Nov – Oct 2024)
Median rental yield: 6.2%
Wahgunyah, 3687
Wahgunyah is 51 km west of Wodonga and 298 km northeast of Melbourne city. Most known for its local wineries, Wahgunyah offers a quaint community of just over 1,000 local residents, while still managing to achieve a considerable median house price of $520,000 and a median rental yield of 5.9%.
Median house price: $520,000 (+13.0% from Nov – Oct 2024)
Median weekly rent: $500 (+16.3 from Nov – Oct 2024)
Median rental yield: 5.9%
