Massive rental yields can be found in five states and territories – with two suburbs recording a yield figure in excess of 20 per cent.
Australia’s highest-yielding suburbs can be found in NSW, Victoria, South Australia, Tasmania and the Northern Territory, according to the latest CoreLogic RP Data.
NSW led the charge, with Thurgoona, a suburb in the regional city of Albury, recording a gross rental yield of 23.11 per cent for units during the 12 months ending October 2015.
The rest of the state’s top performers could be found in coastal towns, where holiday lets appeared to drive up yields.
Among the highlights were Broulee and Killcare, on the south and central coasts.
Broulee recorded a gross rental yield of 21.63 per cent for units, and Killcare 17.49 per cent on houses.
Killcare is a regular appearance in the top 10 high-yield suburbs of NSW, with buyer’s agent Alan Fox attributing the suburb’s strong showing to astronomical advertised weekly rentals more in tune with short-term holiday lets than permanent rentals.
“There are a number of holiday homes in Killcare that are advertised for rents of minimum $2,000 per week to $4,000 per week, and I strongly suspect these advertised rentals are skewing the per cent rental yield figures,” he explained.
“The biggest proportion of residents are in the 50-59 age bracket – families without kids at home. So most are retirees that are not in full-time work. This makes Killcare appealing as a holiday rental location because of the quiet lifestyle and nearby water activities and national parks,” he said.
The coastal theme wasn’t just restricted to NSW, with popular holiday destinations in two other states recording impressive returns.
Tasmania’s Bicheno, a popular seaside destination on the east coast, recorded a yield figure of 18.11 per cent for houses.
Over on the Apple Isle’s west coast, Zeehan recorded a gross rental yield of 12.8 per cent for houses.
In South Australia houses in Port Vincent recorded a gross rental yield of 13.93 per cent.
In the Northern Territory, the newly established suburb of Zuccoli – an exception to the coastal theme – recorded a yield of 15.78 per cent.
The only states and territories without a suburb recording more than of 10 per cent were Victoria, Western Australia and the ACT.
Western Australia came the closest, with units in Broome recording a yield of 9.9 per cent.
Victoria’s top performer was Murtoa, where houses recorded a yield of 8.99 per cent.
Crace was the ACT’s highest yielding suburb, with units recording a figure of 6.04 per cent.