House and unit rental yields fall month on month: CoreLogic RP Data

House and unit rental yields fall month on month: CoreLogic RP Data
House and unit rental yields fall month on month: CoreLogic RP Data

Average gross rental yields for both houses and units fell in June due to dwelling values rising faster than weekly rents, according to a new report from CoreLogic RP Data.

CoreLogic June RP Data Hedonic Home Value Index found the expected gross yield for a house in a capital city is 3.5%, similar to the last record low in 2007. The average gross yield for a unit also fell during the month to 4.4%, close to the 2007 'all-time low' of 4.3%

CoreLogic RP Data head of research Tim Lawless said the pace of capital gains will remain higher than rental growth which will push rental yields even lower over the coming months.

“Melbourne continues to hold the unfortunate title of the lowest yielding capital city, but if current trends continue, it won’t be long before Sydney overtakes Melbourne due to the substantially higher rate of capital gain in the face of comparatively low rental appreciation” Mr Lawless said. 

"Brisbane is now recording the highest gross rental yield for apartments, at 5.4%, and the only capital city where gross rental yields have improved over the year has been Hobart which is now starting to rival Darwin as the highest yielding capital city for houses."

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House and unit rental yields fall month on month: CoreLogic RP Data

Michael Crawford

Michael Crawford

Michael is the real estate reporter for western Sydney and loves writing about homes and the people who live in them. A former production editor and news journalist, he enjoys writing about real-world property purchases as well as aspirational buys and builds. Following a recent move from Sydney’s northern beaches, Michael now actually enjoys commuting.

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Property Yield

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