Top Australian suburbs for rental yield revealed

Dominic Beattie By on September 10, 2019
 
Cairns Australia rental yield

Image: Cairns Foreshore (Jorge Láscar via Flickr)

New research has highlighted 100 Australian suburbs and towns where property investors could generate higher rental yields, with small Queensland towns dominating the list.

For its latest Top Rental Performers Report, property analytics firm CoreLogic identified 100 suburbs and towns where houses or units demonstrated estimated gross rental yields of 5% p.a. or more over the 12 months to July 2019.

Number one on the list was Blackwater – a Central Queensland country town home to around 5,000 people – with a gross estimated yield of 11.7% p.a. and a median rent of $260 per week.

According to the report, the median property value in Blackwater is $122,165.

The town was just one of 42 suburbs and towns from Queensland to make the list, with parts of Cairns and the Gold Coast heavily represented.

Across the other states and territories, 17 suburbs on the list were from New South Wales, 15 from South Australia, 15 from Victoria and 8 from Tasmania.

Western Australia, the Northern Territory and the Australian Capital Territory were each only represented by one suburb.

Second place on the list went to the New South Wales mining town of Broken Hill, which also had a gross rental yield of 11.7% p.a. and a median rent of $260 per week.

Rounding out the top three was Cairns suburb Woree, with a gross rental yield of 10.8% p.a. and a median rent of $260 per week. Interestingly, units were considered to have better rental yields than houses in Woree.

CoreLogic research analyst Cameron Kusher said the ‘best for rents’ areas had vacancy rates of less than 3% and demonstrated consistent rental growth.

The list was also only made up of suburbs with at least 20 sales over the 12 months to July 2019.

Houses represented the best rental opportunities in 63 suburbs from the list, while units offered the highest yields in 37.

Top 100 rental yields suburbs Australia

  • #1 BLACKWATER, QLD
  • #2 BROKEN HILL, NSW
  • #3 WOREE, QLD
  • #4 MANUNDA, QLD
  • #5 KATANNING, WA
  • #6 COBAR, NSW
  • #7 BORDERTOWN, SA
  • #8 BUNGALOW, QLD
  • #9 MORANBAH, QLD
  • #10 PORT AUGUSTA, SA
  • #11 ELIZABETH NORTH, SA
  • #12 HOLLOWAYS BEACH, QLD
  • #13 PORT AUGUSTA WEST, SA
  • #14 WESTCOURT, QLD
  • #15 BRIDGEWATER, TAS
  • #16 ARARAT, VIC
  • #17 PARK AVENUE, QLD
  • #18 MOOROOBOOL, QLD
  • #19 PORTLAND, VIC
  • #20 COROWA, NSW
  • #21 PARRAMATTA PARK, QLD
  • #22 STAWELL, VIC
  • #23 SPRINGWOOD, QLD
  • #24 WEST END, QLD
  • #25 SMITHFIELD, SA
  • #26 CAIRNS NORTH, QLD
  • #27 QUIRINDI, NSW
  • #28 HEATLEY, QLD
  • #29 MORWELL, VIC
  • #30 DAVOREN PARK, SA
  • #31 ELIZABETH PARK, SA
  • #32 MARYBOROUGH, QLD
  • #33 NARRABRI, NSW
  • #34 NEW NORFOLK, TAS
  • #35 PORT PIRIE SOUTH, SA
  • #36 SVENSSON HEIGHTS, QLD
  • #37 CRANBROOK, QLD
  • #38 WHITE ROCK, QLD
  • #39 CARLTON, VIC
  • #40 MOOROOPNA, VIC
  • #41 SALISBURY, SA
  • #42 MANOORA, QLD
  • #43 MANILLA, NSW
  • #44 OAKEY, QLD
  • #45 MILDURA, VIC
  • #46 ROMA, QLD
  • #47 GRAFTON, NSW
  • #48 AVENELL HEIGHTS, QLD
  • #49 WEST KEMPSEY, NSW
  • #50 CLAREMONT, TAS
  • #51 REEDY CREEK, QLD
  • #52 SMITHFIELD PLAINS, SA
  • #53 HORSHAM, VIC
  • #54 KINGAROY, QLD
  • #55 MOE, VIC
  • #56 COOTAMUNDRA, NSW
  • #57 MUNNO PARA, SA
  • #58 WHYALLA JENKINS, SA
  • #59 ARMIDALE, NSW
  • #60 CLIFTON BEACH, QLD
  • #61 NEWNHAM, TAS
  • #62 INVERELL, NSW
  • #63 WESTDALE, NSW
  • #64 SARINA, QLD
  • #65 GEORGE TOWN, TAS
  • #66 GLENORCHY, TAS
  • #67 CRESTWOOD, NSW
  • #68 LAVINGTON, NSW
  • #69 THABEBAN, QLD
  • #70 KEPNOCK, QLD
  • #71 BEACONSFIELD, QLD
  • #72 SHEPPARTON, VIC
  • #73 GATTON, QLD
  • #74 ELIZABETH VALE, SA
  • #75 MORPHETT VALE, SA
  • #76 HAMILTON, VIC
  • #77 SLADE POINT, QLD
  • #78 ARALUEN, NT
  • #79 SOUTHPORT, QLD
  • #80 LABRADOR, QLD
  • #81 MOWBRAY, TAS
  • #82 BENTLEY PARK, QLD
  • #83 UPPER COOMERA, QLD
  • #84 KIRWAN, QLD
  • #85 EDMONTON, QLD
  • #86 AITKENVALE, QLD
  • #87 CHURCHILL, VIC
  • #88 WODONGA, VIC
  • #89 QUEANBEYAN EAST, NSW
  • #90 FOREST HILL, NSW
  • #91 SALE, VIC
  • #92 MUDGEERABA, QLD
  • #93 WEST WODONGA, VIC
  • #94 BRENDALE, QLD
  • #95 CURRUMBIN WATERS, QLD
  • #96 NEWNHAM, TAS
  • #97 HELENSVALE, QLD
  • #98 ANDREWS FARM, SA
  • #99 GUNGAHLIN, ACT
  • #100 QUEANBEYAN, NSW

Source: Corelogic Top Rental Perfomers Report – September 2019. Suburbs ranked by gross rental yield from high to low

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Dominic Beattie
Dominic Beattie is Savings.com.au’s Content Manager. He has been writing and editing articles on finance, business and economics since 2015, having previously worked as a Senior Journalist at financial research and comparison website Canstar before helping to relaunch Savings.com.au in November 2018. Dominic aspires to help everyday Australians discover simple and effective ways to comfortably manage their finances and save money, without sacrificing their joie de vivre.
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