Rental yields have fallen across much of the country, with many capitals experiencing “weak rental conditions”, according to CoreLogic RP Data.
New research has found that Melbourne has the lowest gross yields in Australia.
Yields for houses fell from 3.3 per cent in September 2014 to 2.9 per cent in September 2015, while units fell from 4.3 per cent to 4.1 per cent over the same period.
Sydney has the second-lowest yields, after houses fell from 3.6 per cent to 3.1 per cent and units dropped from 4.5 per cent to 4.4 per cent.
In Perth, houses fell from 4.1 per cent to 3.9 per cent, while units dropped from 4.6 per cent to 4.4 per cent.
In Canberra, houses remained unchanged at 4.1 per cent and units rose from 4.8 per cent to 5.2 per cent.
Adelaide house yields remained steady at 4.2 per cent and units rose from 4.7 per cent to 5.0 per cent.
Houses in Brisbane dropped from 4.5 per cent to 4.3 per cent, while units fell from 5.5 per cent to 5.3 per cent.
Hobart was the only city to record improvement across the board, with houses climbing from 5.2 per cent to 5.3 per cent and units climbing from 5.1 per cent to 5.2 per cent.
Houses in Darwin dropped from 5.9 per cent to 5.4 per cent and units fell from 6.0 per cent to 5.8 per cent.
Gross rental yields for houses across the combined capitals dropped from 3.7 per cent to 3.4 per cent, while units fell from 4.5 per cent to 4.3 per cent.
CoreLogic RP Data head of research Tim Lawless said gross rental yields have hit record lows in Sydney and Melbourne.
“We’re also seeing relatively weak rental conditions across the other capital cities. However, capital gains haven’t been high enough to push gross rental yields substantially lower,” he said.