Darwin is the best performing capital city for rental yields with houses returning 5.9 per cent and units 6.2 per cent.
According to figures from RP Data, the lowest yielding capital city was Melbourne with houses returning 3.9 per cent and units showing a 4.5 per cent yield.
RP Data’s Cameron Kusher said lower rents and higher property prices were responsible for eroding the rental yields.
“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,” he said.
On a city-by-city basis, rental rates across the nation showed varied results during the month.
Currently, the median weekly rent for each mainland capital city sits below the peak achieved during the last year.
Adelaide saw a 0.6 per cent decline in rents from its peak whilst Perth and Canberra recorded the largest falls at 6.9 per cent and 5.8 per cent respectively.