Average gross rental yield lowest since 1996: CoreLogic
The average gross rental yield across the combined capital cities hasn’t been this low since 1996 when CoreLogic began collecting relevant data, according to the June Hedonic Home Value Index.
The average gross yield on a house is 3.2 percent and units 4.1 percent.
CoreLogic research director Tim Lawless said Despite low mortgage rate settings, the low yield profile implies that the majority of recent investors will be experiencing a cash flow loss on their property after expenses are taken into account.
Rental yields are generally low across all of the capital cities, however, it is only in Sydney and Melbourne where yields for both houses and units have dropped to new record lows. Melbourne remains the lowest yielding market for houses, averaging 2.9%, whilst unit yields are now lowest in Sydney and Darwin, averaging 3.9%.
“Overall, the strong housing market conditions in Sydney and Melbourne are being reported in-line with high auction clearance rates and resilient levels of mortgage related activity and are also supported by a robust level of consumer confidence.”
