Call for free independent agent advice
Talk to an agent about buying or selling property
Home › Property Management › Australia’s Highest Rental Yield Suburbs in 2021
Investing in a property with the best rental yield possible ensures you get a good return on your investment. Rental yield is your annual rental income from the property and is shown as a percentage of the property’s value. Naturally, a higher rental yield means the investment property will give you higher cash flow.
While various factors contribute to the rental yield of each property, location is a big one. This guide was first published in October 2021 and looks back at rental markets around Australia.
Table of Contents
A good rental yield in Australia depends on the location. At the end of October 2026, Cotality reported gross rental yields for capital city dwellings ranging from 3.5% in Sydney to 6.4% in Darwin, compared with 4.4% across regional Australia.
The best rental yields in 2020 were found in Collinsville, Queensland at 14.6% and South Hedland, Western Australia at 14.1%.
Source: CoreLogic (now Cotality)
The above table is taken from the Corelogic report and provides an overview of the best rental yields in Greater Sydney.
The Sydney rental market was significantly impacted by the closure of international borders and repeated closure of state borders during the COVID pandemic. Historically, a high proportion of immigrants to Australia initially rent before some go on to buy. Border closures reduced demand from overseas arrivals and contributed to falling rents, particularly in inner Sydney.
According to SQM Research data, the gross rental yield in and around Sydney was 2.5% for houses and 3.4% for units. The average asking price* in Sydney was $1,686,257 for houses. This was more than 30% higher than prices when the pandemic began.
The average for units was $702,678, which was only a slight drop from figures early in the pandemic.
*SQM Research updates their figures weekly.
The above table is taken from the Corelogic report and provides an overview of the best rental yields in Brisbane.
The COVID pandemic affected the Brisbane rental market but not as dramatically as in Sydney and Melbourne. Advertised rents rose strongly in smaller capital cities during 2021, with changes in internal migration contributing to rental demand. Both the Gold Coast and the Sunshine Coast in Queensland were in the top three destinations for internal migrants during the pandemic. The Sunshine Coast experienced the highest annual capital growth in houses nationally.
According to SQM Research data, the gross rental yield in Brisbane was 5.2% for houses and 3.7% for units. The average asking price* in Brisbane was $743,428 for houses. This was almost $100,000 more than the price at the beginning of the pandemic.
The average asking price for units remained relatively stable in Brisbane, at $397,859.
The above table is taken from the Corelogic report and provides an overview of the best rental yields in Melbourne.
The Greater Melbourne rental market was severely impacted in 2020 with a drop in rental prices of -7%. Melbourne experienced border closures and repeated lockdowns. By November 2021, advertised unit rents had begun to recover but remained below their pre-pandemic level.
According to SQM Research data, the gross rental yield in Melbourne was 2.5% for houses and 3.4% for units. The average asking price* in Melbourne was $1,104,885 for houses. At the beginning of the pandemic, the average price was just shy of $1,000,000. With an increase of close to 10%, prices in Melbourne had not risen as dramatically as in other states during the pandemic.
For units, the average asking price in Melbourne was $570,695, which was approximately $20,000 higher than early pandemic prices.
The above table is taken from the Corelogic report and provides an overview of the best rental yields in Adelaide.
The Adelaide rental market experienced rises and falls during the pandemic but remained relatively stable when compared to other states. Rental yields can fall even when rents rise if property prices increase faster.
According to SQM Research data, the gross rental yield in Adelaide was 3.9% for houses and 5.5% for units. The average asking price* in Adelaide was $607,817 for houses. Prices remained relatively stable in 2020 but then began to rise sharply in line with national trends.
For units, the average asking price in Adelaide was $322,669, which represented a slight increase since early 2019.
The above table is taken from the Corelogic report and provides an overview of the best rental yields in Perth.
In 2020, the Perth rental market saw rental prices rise sharply by 8.2%. The downward trend that Perth had been experiencing since 2013 ended shortly before the pandemic began and rental prices trended upward after that.
According to SQM Research data, the gross rental yield in Perth was 3.9% for houses and 5.4% for units. The average asking price* in Perth was $700,900 for houses.
For units, the average asking price in Perth was $388,269, which was almost identical to average prices during the early pandemic.
In 2021, the cash rate target was at a record low of 0.10%. The Reserve Bank raised it five times in 2026, taking it to 4.85% from 4 November.
At the time, the reopening of international borders was expected to increase demand for rental properties.
Whether you are buying a home or an investment, the right timing depends on interest rates and your local market.
For more information on when to buy, see our time to buy guide. It provides general information, which may not account for COVID. You may be surprised to learn that buying during quieter times may work against you as stock may have dried up, but demand continues to push prices.
If you’re looking at buying another investment property, a quality agent can help you navigate the current property market in your local area. Compare local agents now to find the best agent near you.
If you have a rental property you’re looking to lease out, check out our property management offers here for discounted and flat fee deals.
Top Property Valuers in Adelaide [2026]
Property Management FAQs
Reach out to one of our knowledgeable team members below.
Start your free comparison.
