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.

See the full list of suburbs

Low fixed-rate, interest-only home loans for investors

The table below displays three low-rate fixed interest-only home loans currently available for investors, featuring a low-rate pick from each of the following categories: The Big Four Banks, The Top 10 Customer Owned Banks, and the Larger Non-Banks. Products sorted by comp rate*

Provider Ad rate
p.a.
Comp rate*
p.a.
Monthly
repayments
 
Fixed Investor IO 3yrs 3.59% 3.67% $1,197 More details
Great Rate Inv Fixed IO 5yrs 3.59% 4.02% $1,197 More details
Inv Tailored Fixed 5yrs 3.89% 4.90% $1,297 More details
Ad rate
p.a.
Comp rate*
p.a.
Monthly
repayments
Fixed Investor IO 3yrs
3.59% 3.67% $1,197
More details
Great Rate Inv Fixed IO 5yrs
3.59% 4.02% $1,197
More details
Inv Tailored Fixed 5yrs
3.89% 4.90% $1,297
More details

Base criteria of: a $400,000 loan amount, fixed, interest-only (IO) home loans with an LVR (loan-to-value) ratio of at least 80%. Introductory rate products were not considered for selection. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term. Rates correct as at 4 November 2019. View disclaimer.

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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Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in 2018. They are (in descending order): Credit Union Australia, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2019) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.

In the interests of full disclosure, Savings.com.au and loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*Comparison rate includes both the interest rate and the fees and charges relating to a loan, combined into a single percentage figure. The interest rate per annum is based on a loan credit of $150,000 and a loan term of 25 years.

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 firm 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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