Darwin records highest rental yields

Rental rates appear likely to increase as interest rates increase and first home buyer activity declines according to research by rpdata.com Senior Research Analyst Cameron Kusher.

Darwin is the best performing capital for rental yields with houses in the city returning 5.9 per cent and units 6.2 per cent. In second place is Canberra with gross yields of 4.7 per cent for houses and 5.9 per cent for units.

Mr Kusher said that with lower rents and higher property prices, rental yields have been eroded. The average gross yield on a house fell from 4.7 per cent to 4.3 per cent, and the average gross rental yield for units fell from 5.4 percent to 5.0 percent.

Our lowest yielding capital city is Melbourne with houses returning 3.9 per cent and units showing a 4.5 per cent yield. According to Mr Kusher, Melbourne yields have been eroded more than other capital cities due to the exceptionally strong market conditions over the year where home values have increased by 12.6 per cent.

Source: RPData