According to the Real Estate Institute of Victoria (REIV), the suburbs located in and around the CBD have the highest rental returns, with some regional hotspots recording surprisingly high returns.
The one-bedroom apartment market in Melbourne has the highest rental yield in the state. It is the most profitable for investors, recording a rental yield of 6.7%, according to the president of REIV, Robyn Waters.
"Since you only need to spend $ 347,500 to buy a one bedroom apartment in the city, it is an excellent market for people who wish to embark on real estate investments and have the assurance of a neat return of around $ 450 a week, she said.
According to Waters, the rental yield of some regional cities is also high.
The three-bedroom homes in Moe have a rental yield of 6.6 per cent, while the same dwellings in Stawell have a yield of 6.4 per cent, she said.
According to Waters, the appeal to CBD workers, higher education students and their families, as well as to retirees, has contributed to the positive results recorded in inner-city neighborhoods. Melbourne, Docklands, Southbank and South Yarra.
Low vacancy rates in rental housing probably contributed to the good performance of cities in the region, she said.
Here are the Victorian suburbs with the highest rental yields, according to REIV:
Suburbs
Type of housing
Region
Gross rental yield
Median Rent Weekly (June 2019)
Median Price
(June 2019)
Melbourne
1 bedroom
Underground
6.7%
$ 450
$ 347,500
Moe
House with 3 bedrooms
Regional
6.6%
$ 255
$ 200,000
Stawell
House with 3 bedrooms
Regional
6.4%
$ 240
$ 193,750
Southbank
1 bedroom
Underground
6.2%
$ 445
$ 373,000
Melbourne
3 bedroom unit
Underground
6.2%
$ 950
$ 801,000
Shepparton
House with 3 bedrooms
Regional
6.2%
$ 300
$ 251,000
Wodonga
House with 3 bedrooms
Regional
6.0%
$ 325
$ 283,500
Mildura
House with 3 bedrooms
Regional
5.7%
$ 320
$ 289,999
Morwell
House with 3 bedrooms
Regional
5.7%
$ 200
$ 181,000
Churchill
House with 3 bedrooms
Regional
5.6%
$ 200
$ 185,000
Sale
House with 3 bedrooms
Regional
5.6%
$ 290
$ 270,000
Traralgon
House with 3 bedrooms
Regional
5.6%
$ 300
$ 280,000
South Yarra
1 bedroom
Underground
5.5%
$ 400
$ 377,500
Warrnambool
House with 3 bedrooms
Regional
5.5%
$ 350
$ 329,500
Docklands
2 bedroom unit
Underground
5.4%
$ 650
$ 630,000
Melbourne
2 bedroom unit
Underground
5.4%
$ 600
$ 575,000
Wangaratta
House with 3 bedrooms
Regional
5.4%
$ 310
$ 299,000
Prahran
1 bedroom
Underground
5.3%
$ 390
$ 385,000
Richmond
1 bedroom
Underground
5.3%
$ 400
$ 393,500
Southbank
2 bedroom unit
Underground
5.2%
$ 580
$ 575,000
Source: REIV
Top suburbs:
fresh water
,
new farm
,
West Wodonga
,
Darlington
,
Campsie
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