The outlook for property investors in Victoria has been put under the microscope in the recent past. In September 2023, the Property Investment Professionals of Australia judged Victoria the worst of all eight states and territories for property investors after new land taxes were introduced by the Andrews government.
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 2024
| Median Price | Median Weekly Rent | Median Rental Yield | |
|---|---|---|---|
| Houses (Melbourne) | $840,000 | $550 | 3.3% |
| Units (Melbourne) | $615,000 | $550 | 4.6% |
| Houses (Rest of Victoria) | $552,500 | $460 | 4.2% |
| Units (Rest of Victoria) | $409,000 | $380 | 4.8% |
Source: CoreLogic. Data reported to the period ending August 2024. 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 4.6% for units in Melbourne is above only Sydney and 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 comparatively more expensive annually to own an investment property in Victoria than elsewhere.
Read more: Top rental yields in Australia
Highest Rental Yields in Victoria
Ouyen in north-western Victoria has the highest average rental yield (8.8%) for houses in the state as of August. For units, Melbourne City takes the crown with an average yield of 8.1%.
Houses
| Rank | Suburb (Postcode) | LGA | Median Price | Weekly Median Advertised Rent | Gross Rental Yield |
|---|---|---|---|---|---|
| 1st | Ouyen (3490) | Mildura | $192,500 | $328 | 8.8% |
| 2nd | Rochester (3561) | Campaspe | $299,000 | $490 | 8.5% |
| 3rd | Warracknabeal (3393) | Yarriambiack | $212,000 | $325 | 8.0% |
| 4th | East Bairnsdale (3875) | East Gippsland | $332,500 | $480 | 7.5% |
| 5th | Mooroopna (3629) | Greater Shepparton | $377,500 | $495 | 6.8% |
| 6th | Dimboola (3414) | Hindmarsh | $260,000 | $335 | 6.7% |
| 7th | Numurkah (3636) | Moira | $353,889 | $440 | 6.5% |
| 8th | Stawell (3380) | Northern Grampians | $315,000 | $380 | 6.3% |
| 9th | Eagle Point (3878) | East Gippsland | $444,000 | $530 | 6.2% |
| 10th | Merbein (3505) | Mildura | $298,000 | $350 | 6.1% |
| 11th | Nhill (3418) | Hindmarsh | $265,000 | $300 | 5.9% |
| 12th | Lucknow (3875) | East Gippsland | $470,000 | $530 | 5.9% |
| 13th | Kalimna (3909) | East Gippsland | $402,500 | $450 | 5.8% |
| 14th | Ararat (3377) | Ararat | $342,500 | $383 | 5.8% |
| 15th | Mortlake (3272) | Moyne | $361,000 | $400 | 5.8% |
| 16th | Stratford (3862) | Wellington | $456,250 | $500 | 5.7% |
| 17th | Orbost (3888) | East Gippsland | $339,000 | $370 | 5.7% |
| 18th | Morwell (3840) | Latrobe (Vic.) | $330,000 | $360 | 5.7% |
| 19th | Red Cliffs (3496) | Mildura | $350,100 | $380 | 5.6% |
| 20th | Cobram (3644) | Moira | $405,000 | $430 | 5.5% |
| 21st | Churchill (3842) | Latrobe (Vic.) | $350,000 | $370 | 5.5% |
| 22nd | Tatura (3616) | Greater Shepparton | $427,000 | $450 | 5.5% |
| 23rd | Portland (3305) | Glenelg | $425,000 | $443 | 5.4% |
| 24th | Horsham (3400) | Horsham | $382,500 | $393 | 5.3% |
| 25th | Camperdown (3260) | Corangamite | $420,000 | $430 | 5.3% |
Source: CoreLogic. Data reported to the period ending August 2024. Median values account for sales transactions over 12 months.
Ouyen, near Mildura, is currently the standout by rental yields for houses at 8.8%. Ouyen is a major agricultural centre, known for producing sheep as well as wheat, barley and oats. This might be one reason why rental yields are so high (workers moving to the area) but only temporarily. Warracknabeal and Rochester are other suburbs in the top five with a strong farming presence.
Units
| Rank | Suburb (Postcode) | LGA | Median Price | Weekly Median Advertised Rent | Gross Rental Yield |
|---|---|---|---|---|---|
| 1st | Melbourne (3000) | Melbourne | $413,000 | $640 | 8.1% |
| 2nd | Notting Hill (3168) | Monash | $340,000 | $500 | 7.6% |
| 3rd | Carlton (3053) | Melbourne | $350,000 | $500 | 7.4% |
| 4th | Seymour (3660) | Mitchell | $250,000 | $350 | 7.3% |
| 5th | Bairnsdale (3875) | East Gippsland | $255,250 | $350 | 7.1% |
| 6th | Travancore (3032) | Moonee Valley | $374,000 | $500 | 7.0% |
| 7th | Southbank (3006) | Melbourne | $525,000 | $650 | 6.4% |
| 8th | Huntingdale (3166) | Monash | $422,500 | $520 | 6.4% |
| 9th | Cairnlea (3023) | Brimbank | $400,000 | $480 | 6.2% |
| 10th | Heidelberg West (3081) | Banyule | $480,000 | $573 | 6.2% |
| 11th | Abbotsford (3067) | Yarra | $505,000 | $590 | 6.1% |
| 12th | Benalla (3672) | Benalla | $300,000 | $350 | 6.1% |
| 13th | Essendon North (3041) | Moonee Valley | $408,000 | $470 | 6.0% |
| 14th | Portland (3305) | Glenelg | $305,000 | $350 | 6.0% |
| 15th | Numurkah (3636) | Moira | $245,000 | $280 | 5.9% |
| 16th | West Melbourne (3003) | Melbourne | $515,000 | $580 | 5.9% |
| 17th | Albion (3020) | Brimbank | $312,500 | $350 | 5.8% |
| 18th | South Melbourne (3205) | Port Phillip | $558,750 | $625 | 5.8% |
| 19th | Ararat (3377) | Ararat | $305,000 | $340 | 5.8% |
| 20th | Wollert (3750) | Whittlesea | $440,000 | $490 | 5.8% |
| 21st | Docklands (3008) | Melbourne | $585,000 | $650 | 5.8% |
| 22nd | Mildura (3500) | Mildura | $315,000 | $350 | 5.8% |
| 23rd | North Melbourne (3051) | Melbourne | $500,000 | $550 | 5.7% |
| 24th | Moe (3825) | Latrobe (Vic.) | $250,000 | $275 | 5.7% |
| 25th | Williams Landing (3027) | Wyndham | $432,000 | $475 | 5.7% |
Source: CoreLogic. Data reported to the period ending August 2024. Median values account for sales transactions over 12 months.
Highest rental yields in Melbourne
Junction Valley, about 45 kms from the CBD, had the highest rental yields for houses in the Melbourne Statistical Division at 4.6%. With an average annual return of 8.1% (as of August 2024), the Melbourne CBD has the units with the highest rental yield of any capital city besides Darwin.
Houses
| Rank | Suburb (Postcode) | LGA | Median Price | Weekly Median Advertised Rent | Gross Rental Yield |
|---|---|---|---|---|---|
| 1st | Junction Village (3977) | Casey | $658,000 | $580 | 4.6% |
| 2nd | Coolaroo (3048) | Hume | $540,000 | $470 | 4.5% |
| 3rd | Dallas (3047) | Hume | $530,000 | $460 | 4.5% |
| 4th | Koo Wee Rup (3981) | Cardinia | $680,000 | $588 | 4.5% |
| 5th | Melton South (3338) | Melton | $488,000 | $420 | 4.5% |
| 6th | Weir Views (3338) | Melton | $545,000 | $460 | 4.4% |
| 7th | Wollert (3750) | Whittlesea | $688,000 | $580 | 4.4% |
| 8th | Lang Lang (3984) | Cardinia | $700,000 | $590 | 4.4% |
| 9th | Campbellfield (3061) | Hume | $620,000 | $520 | 4.4% |
| 10th | Baxter (3911) | Mornington Peninsula | $706,000 | $590 | 4.3% |
| 11th | Tarneit (3029) | Wyndham | $642,500 | $530 | 4.3% |
| 12th | Truganina (3029) | Wyndham | $645,000 | $530 | 4.3% |
| 13th | Melton (3337) | Melton | $477,000 | $390 | 4.3% |
| 14th | Eumemmerring (3177) | Casey | $650,000 | $530 | 4.2% |
| 15th | Craigieburn (3064) | Hume | $650,000 | $530 | 4.2% |
| 16th | Meadow Heights (3048) | Hume | $580,000 | $470 | 4.2% |
| 17th | Wyndham Vale (3024) | Wyndham | $580,000 | $470 | 4.2% |
| 18th | Clyde (3978) | Casey | $688,000 | $558 | 4.2% |
| 19th | Kurunjang (3337) | Melton | $520,000 | $420 | 4.2% |
| 20th | Broadmeadows (3047) | Hume | $570,000 | $460 | 4.2% |
| 21st | Belgrave (3160) | Yarra Ranges | $830,500 | $670 | 4.2% |
| 22nd | Clyde North (3978) | Casey | $719,900 | $580 | 4.2% |
| 23rd | Kalkallo (3064) | Hume | $624,900 | $500 | 4.2% |
| 24th | Cranbourne West (3977) | Casey | $687,500 | $550 | 4.2% |
| 25th | Donnybrook (3064) | Whittlesea | $650,000 | $520 | 4.2% |
Source: CoreLogic. Data reported to the period ending August 2024. Median values account for sales transactions over 12 months.
Units
| Rank | Suburb (Postcode) | LGA | Median Price | Weekly Median Advertised Rent | Gross Rental Yield |
|---|---|---|---|---|---|
| 1st | Melbourne (3000) | Melbourne | $413,000 | $640 | 8.1% |
| 2nd | Notting Hill (3168) | Monash | $340,000 | $500 | 7.6% |
| 3rd | Carlton (3053) | Melbourne | $350,000 | $500 | 7.4% |
| 4th | Travancore (3032) | Moonee Valley | $374,000 | $500 | 7.0% |
| 5th | Southbank (3006) | Melbourne | $525,000 | $650 | 6.4% |
| 6th | Huntingdale (3166) | Monash | $422,500 | $520 | 6.4% |
| 7th | Cairnlea (3023) | Brimbank | $400,000 | $480 | 6.2% |
| 8th | Heidelberg West (3081) | Banyule | $480,000 | $573 | 6.2% |
| 9th | Abbotsford (3067) | Yarra | $505,000 | $590 | 6.1% |
| 10th | Essendon North (3041) | Moonee Valley | $408,000 | $470 | 6.0% |
| 11th | West Melbourne (3003) | Melbourne | $515,000 | $580 | 5.9% |
| 12th | Albion (3020) | Brimbank | $312,500 | $350 | 5.8% |
| 13th | South Melbourne (3205) | Port Phillip | $558,750 | $625 | 5.8% |
| 14th | Wollert (3750) | Whittlesea | $440,000 | $490 | 5.8% |
| 15th | Docklands (3008) | Melbourne | $585,000 | $650 | 5.8% |
| 16th | North Melbourne (3051) | Melbourne | $500,000 | $550 | 5.7% |
| 17th | Williams Landing (3027) | Wyndham | $432,000 | $475 | 5.7% |
| 18th | Jacana (3047) | Hume | $455,000 | $500 | 5.7% |
| 19th | Maribyrnong (3032) | Maribyrnong | $456,000 | $500 | 5.7% |
| 20th | South Yarra (3141) | Stonnington | $540,000 | $580 | 5.6% |
| 21st | Broadmeadows (3047) | Hume | $427,500 | $450 | 5.5% |
| 22nd | Parkville (3052) | Melbourne | $506,000 | $530 | 5.4% |
| 23rd | Craigieburn (3064) | Hume | $430,000 | $450 | 5.4% |
| 24th | Flemington (3031) | Moonee Valley | $431,250 | $450 | 5.4% |
| 25th | Cranbourne West (3977) | Casey | $520,000 | $540 | 5.4% |
Source: CoreLogic. Data reported to the period ending August 2024. 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
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
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6.34% p.a. | 6.36% p.a. | $3,108 | Principal & Interest | Variable | $0 | $350 | 60% |
First published on March 2024
Image by John Simmons via Unsplash.
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