8 suburbs with 15%-plus yields

8 suburbs with 15%-plus yields



Rental yields revealed

Regional towns and suburbs have emerged as Australia’s highest-yielding rental locations, with a prized attribute linking the top performers.

Coastal towns and suburbs away from the major cities – these are the locations attracting some of the highest rental yields in Australia, according to new data. 

The NSW south coast town of Broulee is the highest-yielding location in the country, according to figures from the CoreLogic RP Data.

The small town, a popular tourist destination, recorded a gross rental yield of 28.01 per cent, based on a weekly advertised rent of $1,600 and a median unit price of $297,000.

This was well ahead of any other town or suburb in the country, with the regional town of Thurgoona (just outside Albury-Wodonga, and the exception to the coastal theme) coming in at second place with a gross rental yield of 21.97 per cent based on a weekly rent of $300 and a median unit price of $71,000.

The resort town of Dolphin Heads, in the City of Mackay, recorded the third-highest gross rental yield in the country – 21.49 per cent, based on an advertised rent of $345 per week and a median unit price of $83,500.

The result sees Dolphin Heads stand in direct contrast to its immediate surrounds – the Mackay region has suffered devastating declines to median price values and rental yields in the wake of the commodity downturn.

However, it may have a distinct advantage over other mining towns: its proximity to nearby tourism attractions.

Ben Kingsley, CEO of Empower Wealth, recently said that diversification of Mackay’s local economy is the critical factor that may see the region recover before other mining areas.

“I’d definitely say that Mackay as a township has got lifestyle appeal, it’s next to the Whitsundays, so from that point of view it has got a little more of a diversified economy,” he said.

Philippe Brach, CEO of Multifocus Properties & Finance, explained that the underlying growth drivers for diversified industries exist in the area.

“Mackay is doing a bit of work in expanding the airport to get more capacity, so there’s an underlying resurgence in activity in Mackay,” Mr Brach said.

However, both men cautioned investors against purchasing in the area until the true bottom of the downturn has been witnessed.

Bicheno, in Tasmania, came fourth on the list of high-yielding suburbs, achieving a rate of 18.09 per cent on a weekly rent of $1,000 and a median house price of $287,500. 

Back in Queensland, Stapylton on the Gold Coast recorded the fifth-highest gross rental yield.

The tiny locality recorded a yield of 17.88 per cent, based on a weekly rent of $550 and a median unit price of $160,000.

The coastal village of Scotts Head, on the NSW mid-north coast, recorded a rental yield of 16.72 per cent to rank the sixth highest-yielding location in Australia.

That result is based on a weekly rent of $1,190 and a median house price of $370,000.

Zuccoli, a recently released estate near the Darwin satellite city of Palmerston, recorded a gross rental yield of 16.07 per cent to rank as the seventh highest-yielding suburb.

The weekly advertised rent in Zuccoli sits at $720, with the median house price recorded as $233,000.

Carrickalinga, on South Australia’s Fleurieu Peninsula, recorded a rental yield of 15.22 per cent to round out the list of 15 per cent-plus locations.

Sitting in eighth position, its yield rate was calculated on a weekly rent of $1,200 and a median house price of $410,000.

Western Australia, the ACT and Victoria failed to make the list of high-yielding suburbs.

Ouyen is Victoria’s top suburb, recording a gross rental yield of 11.95 per cent.

Broome was WA’s highest performer, recording 10.6 per cent, while Crace was the strongest suburb in the ACT, returning a yield of 6.04 per cent. 

Read more:

5 affordable Sydney suburbs 

4 essential elements of a successful investment

Getting past the first 2 investment properties 

 

8 suburbs with 15%-plus yields
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