Darwin home to Australia's highest rental yields

Darwin home to Australia's highest rental yields
Darwin home to Australia's highest rental yields

Rental yields in Darwin have grown 0.2% over the year, reaching 6% from 5.8% in 2018, according to the latest data from CoreLogic.

They found that while rents softened over the past month, rental rates increased in all capital cities other than in Sydney, where rental yields are the tightest, and Perth over the past year. 

Gross rental yields for units in Darwin are even higher at 6.8%. Plus the median value of a unit in Darwin is the lowest out of any capital city, sitting at $289,687.

It is $32,495 less than the second lowest Adelaide, $322,142.

Overall, the weakest market conditions continue to be seen in Darwin and Perth, where values dipped further over the month, although the three month trend in both cities is suggesting an improvement in the rate of decline.

Darwin dwelling values are now 30.7% below their May ’14 peak.

However despite these figures Tim Lawless said: “with mortgage rates low, and likely to reduce further, as well as low yields across most asset classes, lower rental yields aren’t likely to be much of a disincentive to investors.”

Darwin home to Australia's highest rental yields

An example of Darwin's high rental yields is 84/21-23 Cavenagh Street, Darwin City (pictured above) which was listed in March 2018 for $290 per week.

Last sold in August 2019 for $148,000, the yield for the property is calculated as 10%.

Tags: 
Darwin Rental Yield

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