Login
iscover
Agents in regional Western Australia have been kept busy meeting strong investor demand, as buyers flock to markets with solid rental returns, attractive yields, and steady growth potential.
According to Domain’s latest September quarter rent report, houses in regional Western Australia have continued to attract investors, recording the strongest yield across the country, right below 10 per cent.
Domain’s chief of research and economics, Dr Nicola Powell, said that in regional areas, housing demand is often closely tied to major industries, such as mining, which has been driving employment and population growth.
“Investors look for higher rental returns to offset the extra risk and slower capital growth that can come with these markets,” she said.
The report showed that houses in Kambalda West scored the highest rental yield across the country, with a median weekly asking rent: $390 and a median gross rental yield: 9.43 per cent.
This was followed by Baynton, where houses recorded a median weekly asking rent of $1,550, yielding an annual gross rental return of 9.00 per cent.
Houses in Newman rent for $650 per week, yielding 8.93 per cent yearly, while Pegs Creek properties command $1,100 weekly, yielding 8.90 per cent.
In addition to regional WA, regional Queensland also recorded some of the highest yields across the country, with houses in Sunset having a 9.04 per cent median yield annually, for a median weekly rent of $480.
Similarly, houses in Parkside recorded a median rent for $460 per week, yielding annually 8.89 per cent, while Collinsville houses have been renting for $400 weekly, yielding 8.85 per cent.
“The data shows that Australia's strongest rental yields come down to two key factors, affordability and consistent rental demand,” Powell said.
Outside regional areas, the report showed that unit rental yield Darwin has been leading the way, claiming nine of Australia’s top 10 high-yield capital city suburbs.
With median annual returns ranging from 7.45 to 8.73 per cent, the report said that the city’s tight rental market and dynamic price movements have continued to attract yield-focused investors.
“Darwin really stands out as a landlord's market. Its ongoing supply-demand imbalance, driven by a transient workforce and relative affordability compared to the east coast, is keeping rents high and cementing its reputation as Australia’s high-yield capital,” Powell said.
Across the city, units in Gray claimed the top position, with a weekly rent of $475 and an annual yield of 8.73 per cent.
This was followed by units in Bakewell recording a median weekly rent of $520 and an annual yield of 8.59 per cent.
Meanwhile, Driver and Millner units have secured a median rent of $470 and $490 weekly, both yielding 8.57 per cent annually.
Across the remaining capitals, Perth recorded median annual returns of 6.69 to 7.05 per cent, while Western Sydney saw rental returns ranging from 6.05 to 6.58 per cent, showing that strong income from rentals has been emerging nationwide.
Further south, Melbourne recorded one neighbourhood in the top 10 high-yield capital city suburbs, with the city’s median annual returns ranging from 6.67 to 7.65 per cent.
“Melbourne’s also one to watch. While it hasn’t led in terms of capital growth recently, its strong yields and renewed investor interest suggest the market could be regaining momentum.” Powell concluded.
ABOUT THE AUTHOR
You are not authorised to post comments.
Comments will undergo moderation before they get published.