Rising rents and softer property values in some markets have pushed Australia’s gross rental yield to its highest level since 2019.
According to Cotality, the national gross rental yield reached 3.8% in August, as rental growth continued while property values eased across parts of the country.
Perth’s rental market remains tight
Conditions in Perth continue to look quite different from many east coast markets.
REIWA reported a Perth rental vacancy rate of just 1.9% in August, below the 2.5-3.5% range it considers a balanced market. Median weekly rents remained at $750 for houses and $700 for units.
For investors, that means rental conditions remain supportive – but yield should never be considered in isolation.
Other factors include:
A higher rental yield can help improve cash flow, but it doesn’t automatically make a property a good investment.
Thinking about investing?
If you’re considering an investment property, we can help you understand your borrowing options and structure the finance around your plans.
And if you’re still looking for the right property, Prospera Property Group works alongside The Loan Company to help our clients explore new-build investment opportunities in WA.
