The outlook for property investors in Victoria has been put under the microscope recently. In September 2023, the Property Investment Professionals of Australia adjudged Victoria as the worst of all eight states and territories for property investors after new land taxes were introduced by the Andrews government. This resulted in landlords selling at a record rate in 2024, with rental bond data from the Department of Families, Fairness and Housing revealing more than 20,000 rental properties left Victoria's market.

Victoria remains an enduringly appealing place to live though, with Melbourne frequently ranking very well in lists of the most liveable cities in the world. If you're an investor interested in Australia's second most-populated state, these suburbs and towns have some of the highest rental yields.

Victoria rental yields in 2025

Median price Median weekly rent Median rental yield
Houses (Melbourne) $860,000 $575 3.5%
Units (Melbourne) $610,000 $555 4.7%
Houses (Rest of Victoria) $567,000 $480 4.5%
Units (Rest of Victoria) $425,000 $400 5.0%

Source: CoreLogic. Data reported to the period ending April '25. Median values account for sales transactions over three months.

Rental yields in Victoria, in both metropolitan and country areas, are comparatively lower than most other regions. Sydney is the only capital city with lower rental yields for houses than Melbourne, while the median yield of 4.7% for units in Melbourne is above only Sydney, level with Hobart.

Part of this is likely due to the Victorian economy, which is more services-based than the likes of WA and Queensland. One of the biggest drivers of high rental yields is the population of transient workers, which is often relatively high in areas where the main industry is mining or agriculture. The high yields in regional Western Australia, for example, are often in resource rich areas, where workers temporarily live during mining projects, driving up rental demand, but without an equivalent demand for owner occupied property.

It's also worth keeping in mind that the land taxes and absentee owner surcharges need to be factored in when considering the overall return from the property. Rental yields might represent some of the property's value, but this could be offset by it being more expensive annually to own an investment property in Victoria compared to elsewhere.

Read more: Top rental yields in Australia

Highest rental yields in Victoria

The suburb with the highest average rental yield for houses in Victoria as of April was Warracknabeal at 8.2%. For units it was Melbourne City at 8.6%.

Houses

Rank Suburb (Postcode) LGA Median Price Median Rent Median Rental Yield
1st Warracknabeal (3393) Yarriambiack $199,500 $315 8.2%
2nd East Bairnsdale (3875) East Gippsland $340,000 $480 7.3%
3rd Dimboola (3414) Hindmarsh $257,500 $350 7.1%
4th Donald (3480) Buloke $260,000 $325 6.5%
5th Stawell (3380) Northern Grampians $322,000 $400 6.5%
6th Mooroopna (3629) Greater Shepparton $405,000 $495 6.4%
7th Ouyen (3490) Mildura $262,500 $320 6.3%
8th Nhill (3418) Hindmarsh $253,000 $305 6.3%
9th Morwell (3840) Latrobe (Vic.) $340,000 $390 6.0%
10th Lucknow (3875) East Gippsland $480,000 $550 6.0%
11th Red Cliffs (3496) Mildura $368,750 $415 5.9%
12th Heyfield (3858) Wellington $370,000 $410 5.8%
13th Yinnar (3869) Latrobe (Vic.) $426,000 $470 5.7%
14th Mortlake (3272) Moyne $370,000 $405 5.7%
15th Portland (3305) Glenelg $425,000 $463 5.7%
16th Rosedale (3847) Wellington $437,500 $475 5.6%
17th Churchill (3842) Latrobe (Vic.) $370,000 $400 5.6%
18th Cobram (3644) Moira $420,000 $453 5.6%
19th Moe (3825) Latrobe (Vic.) $355,000 $380 5.6%
20th Horsham (3400) Horsham $382,500 $400 5.4%
21st Mildura (3500) Mildura $460,000 $480 5.4%
22nd Stratford (3862) Wellington $493,750 $515 5.4%
23rd Dalyston (3992) Bass Coast $479,500 $500 5.4%
24th Sale (3850) Wellington $470,000 $490 5.4%
25th Merbein (3505) Mildura $346,000 $360 5.4%

Source: CoreLogic. Data reported to the period ending April 2025. Median values account for sales transactions over 12 months.

Farming is the major theme of the above list. Warracknabeal, Donald, Mooroopna and Ouyen are all agricultural centres, which can mean higher rental yields as there’s more of a demand for temporary accommodation as workers come and go. There are several other suburbs in this list in the Mildura region, known as the centre of Victoria’s ‘Fruit Bowl’.

Units

Rank Suburb (Postcode) LGA Median Price Median Rent Median Rental Yield
1st Melbourne (3000) Melbourne $395,000 $650 8.6%
2nd Travancore (3032) Moonee Valley $357,500 $520 7.6%
3rd Carlton (3053) Melbourne $380,000 $550 7.5%
4th Notting Hill (3168) Monash $390,000 $550 7.3%
5th Southbank (3006) Melbourne $495,000 $675 7.1%
6th Seymour (3660) Mitchell $258,500 $350 7.0%
7th Numurkah (3636) Moira $235,000 $318 7.0%
8th Albion (3020) Brimbank $281,000 $370 6.8%
9th West Melbourne (3003) Melbourne $460,000 $600 7.0%
10th Essendon North (3041) Moonee Valley $385,500 $480 6.0%
11th Hamilton (3300) Southern Grampians $266,500 $330 6.0%
12th Cairnlea (3023) Brimbank $413,725 $500 6.0%
13th North Melbourne (3051) Melbourne $472,500 $560 6.0%
14th Benalla (3672) Benalla $312,500 $360 6.0%
15th Mildura (3500) Mildura $321,500 $370 6.0%
16th Portland (3305) Glenelg $332,500 $380 6.0%
17th Moe (3825) Latrobe (Vic.) $245,000 $280 6.0%
18th Morwell (3840) Latrobe (Vic.) $260,000 $295 6.0%
19th Maryborough (3465) Central Goldfields $285,000 $320 6.0%
20th Ararat (3377) Ararat $305,000 $340 6.0%
21st Williams Landing (3027) Wyndham $440,000 $490 6.0%
22nd Traralgon (3844) Latrobe (Vic.) $332,500 $370 6.0%
23rd Docklands (3008) Melbourne $615,550 $680 6.0%
24th South Melbourne (3205) Port Phillip $567,500 $625 6.0%
25th Abbotsford (3067) Yarra $519,500 $570 6.0%

Source: CoreLogic. Data reported to the period ending April 2025. Median values account for sales transactions over 12 months.

Melbourne City had the highest yields for units in Victoria at 8.6%. Several other suburbs in inner Melbourne made the list, which is slightly unusual given the strongest yields in most other states are generally outside of the capital. What you’ll also notice upon further analysis is this is mostly due to the lower prices of Melbourne units compared to Brisbane and Sydney. It’s not obvious why this is - one contributing factor may be a higher concentration of smaller, one bedroom units in Melbourne compared to other cities.

Highest rental yields in Melbourne

Junction Village houses, about 45kms south east of the CBD, had an average rental yield of 4.9% as of April, making it the highest in Melbourne. Meanwhile Melbourne City took top spot for units with an 8.6% average yield.

Houses

Rank Suburb (Postcode) LGA Median Price Median Rent Median Rental Yield
1st Junction Village (3977) Casey $660,000 $620 4.9%
2nd Lang Lang (3984) Cardinia $705,000 $650 4.8%
3rd Dallas (3047) Hume $552,000 $500 4.7%
4th Coolaroo (3048) Hume $560,000 $500 4.6%
5th Koo Wee Rup (3981) Cardinia $675,000 $600 4.6%
6th Nar Nar Goon North (3812) Cardinia $685,000 $595 4.5%
7th Campbellfield (3061) Hume $625,000 $540 4.5%
8th Diggers Rest (3427) Melton $602,750 $520 4.5%
9th Melton (3337) Melton $477,500 $410 4.5%
10th Wollert (3750) Whittlesea $679,500 $580 4.4%
11th Meadow Heights (3048) Hume $609,786 $520 4.4%
12th Monbulk (3793) Yarra Ranges $822,000 $695 4.4%
13th Weir Views (3338) Melton $545,000 $460 4.4%
14th Cranbourne West (3977) Casey $690,000 $580 4.4%
15th Melton South (3338) Melton $515,000 $430 4.3%
16th Clyde (3978) Casey $695,000 $580 4.3%
17th Officer (3809) Cardinia $720,000 $600 4.3%
18th Pakenham (3810) Cardinia $660,000 $550 4.3%
19th Westmeadows (3049) Hume $660,000 $550 4.3%
20th Roxburgh Park (3064) Hume $660,000 $550 4.3%
21st Eumemmerring (3177) Casey $635,000 $528 4.3%
22nd Tarneit (3029) Wyndham $649,500 $540 4.3%
23rd Broadmeadows (3047) Hume $590,500 $490 4.3%
24th Clyde North (3978) Casey $725,000 $600 4.3%
25th Craigieburn (3064) Hume $664,750 $550 4.3%

Source: CoreLogic. Data reported to the period ending April 2025. Median values account for sales transactions over 12 months.

Units

Rank Suburb (Postcode) LGA Median Price Median Rent Median Rental Yield
1st Melbourne (3000) Melbourne $395,000 $650 8.6%
2nd Travancore (3032) Moonee Valley $357,500 $520 7.6%
3rd Carlton (3053) Melbourne $380,000 $550 7.5%
4th Notting Hill (3168) Monash $390,000 $550 7.3%
5th Southbank (3006) Melbourne $495,000 $675 7.1%
6th Albion (3020) Brimbank $281,000 $370 6.8%
7th West Melbourne (3003) Melbourne $460,000 $600 6.8%
8th Essendon North (3041) Moonee Valley $385,500 $480 6.5%
9th Cairnlea (3023) Brimbank $413,725 $500 6.3%
10th North Melbourne (3051) Melbourne $472,500 $560 6.2%
11th Williams Landing (3027) Wyndham $440,000 $490 5.8%
12th Docklands (3008) Melbourne $615,550 $680 5.7%
13th South Melbourne (3205) Port Phillip $567,500 $625 5.7%
14th Abbotsford (3067) Yarra $519,500 $570 5.7%
15th Melbourne (3004) Port Phillip $595,000 $650 5.7%
16th South Yarra (3141) Stonnington $555,000 $600 5.6%
17th Roxburgh Park (3064) Hume $447,000 $480 5.6%
18th Brunswick East (3057) Moreland $515,000 $550 5.6%
19th Box Hill (3128) Whitehorse $540,000 $575 5.5%
20th Cremorne (3121) Yarra $625,000 $665 5.5%
21st Wollert (3750) Whittlesea $470,500 $500 5.5%
22nd Footscray (3011) Maribyrnong $480,000 $510 5.5%
23rd Broadmeadows (3047) Hume $450,000 $478 5.5%
24th Meadow Heights (3048) Hume $472,000 $500 5.5%
25th Parkville (3052) Melbourne $502,500 $530 5.5%

Source: CoreLogic. Data reported to the period ending April 2025. Median values account for sales transactions over 12 months.

Looking for an investment property? Here are some of the top investment home loans available on the Australian market right now

Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Extra Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
5.69% p.a.
6.03% p.a.
$2,899
Principal & Interest
Variable
$0
$530
90%
  • Investor
  • Variable
  • Principal & Interest
  • 10% Min Deposit
  • Redraw
  • Extra Repayments
  • More details
  • Discounted interest rate for 5 years for homes with an eligible solar system
  • Available for refinance or purchase
  • No monthly, annual or ongoing fees
Disclosure
5.74% p.a.
5.76% p.a.
$2,915
Principal & Interest
Variable
$0
$250
60%
  • Investor
  • Variable
  • Principal & Interest
  • 40% Min Deposit
  • Redraw
  • More details
Disclosure
5.69% p.a.
5.60% p.a.
$2,899
Principal & Interest
Variable
$0
$0
80%
  • Built and funded by CommBank
  • Investor
  • Variable
  • Principal & Interest
  • 20% Min Deposit
  • Redraw
  • More details
  • A low-rate variable investment home loan from a 100% online lender.
  • Backed by the Commonwealth Bank.
Disclosure
5.84% p.a.
5.88% p.a.
$2,947
Principal & Interest
Variable
$0
$530
90%
  • Investor
  • Variable
  • Principal & Interest
  • 10% Min Deposit
  • Redraw
  • Extra Repayments
  • More details
  • Minimum 10% deposit needed to qualify. Available for purchase or refinance
  • No application, ongoing monthly or annual fees.
  • Flexibility to split your loan with both fixed and variable rates
Disclosure
5.74% p.a.
5.76% p.a.
$2,915
Principal & Interest
Variable
$0
$350
60%
  • Investor
  • Variable
  • Principal & Interest
  • 40% Min Deposit
  • Redraw
  • More details
Disclosure
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning

First published on March 2024

Image by John Simmons via Unsplash. 

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