The 10 lowest and highest rental yield suburbs across New South Wales

Rental yields are an important aspect to the investment equation.

While some investors are strict ‘yield chasers’ and others consider it the cherry on top of their capital gain, it’s worth remembering that yield does affect holding cost.

The yield is affected by many things and it’s crucial to be aware of what it is recording before diving in. Here’s a quick refresher on what the rental yield is, and how to use it.

If you think your current property could do with a boost – here are some ways to up this figure.

The following statistics were taken from the most recently available RP Data information.

For this article, we’re focusing on the lowest yielding suburbs based on house data for New South Wales.

THE LOWEST 10 RENTAL YIELDS

Firstly, looking at the lowest yields across Australia it’s not surprising that they’re present in our multi-million dollar suburbs, mainly near to Sydney CBD.

Narrowly missing the top 10 list included Rodd Point, Sandringham and McMahons Point, where yields were recorded under 2.50%, as well as Bellevue Hill, Blakehurst and Hurstville where yields were recorded under 2.75%.

1. 1.74%
   
   Palm Beach
   
   Median price: $2,535,000
   
   
2. 1.97%
   
   Austral
   
   Median price: $1,080,000
   
   
3. 2.00%
   
   Box Hill
   
   Median price: $1,625,000
   
   
4. 2.05%
   
   Chiswick
   
   Median price: $1,749,000
   
   
5. 2.23%
   
   Glenorie
   
   Median price: $1,095,000
   
   
6. 2.25%
   
   Balmain East
   
   Median price: $2,020,000
   
   
7. 2.27%
   
   Waverton
   
   Median price: $2,200,000
   
   
8. 2.27%
   
   Strathfield
   
   Median price: $1,558,000
   
   
9. 2.32%
   
   Kenthurst
   
   Median price: $1,343,000
   
   
10. 2.38%
    
    Longueville
    
    Median price: $2,510,000

Turn page for the highest yielding house suburbs across New South Wales.

THE HIGHEST 10 RENTAL YIELDS

Again using RP Data’s statistics, we collected the 10 highest yielding house suburbs. These presented a fascinating list of mixed results – from higher priced suburbs just under the $1 million mark to just over $110,000, it’s understandable that some will be confused.

As explained in this top 10 rental yield areas around the country, previously supplied by RP Data, mining towns are often present on these sorts of lists – as are country towns and very regional areas.

For this reason, and the common saying that high returns come from high risk, it’s understandable that there’s a mix of opportunities in the market. You would be wise to treat these suburbs with the utmost diligence.

1. 16.40%
   
   Killcare
   
   Median price: $825,000
    
2. 11.57%
   
   Mossy Point
   
   Median price: $580,000
    
3. 11.56%
   
   Broulee
   
   Median price: $371,000
    
4. 10.89%
   
   Hardys Bay
   
   Median price: $955,000
    
5. 10.49%
   
   Coonamble
   
   Median price: $114,000
    
6. 10.40%
   
   Condobolin
   
   Median price: $115,000
    
7. 10.26%
   
   Malua Bay
   
   Median price: $380,000
    
8. 9.75%
   
   Broken Hill
   
   Median price: $120,000
    
9. 9.53%
   
   Manyana
   
   Median price: $328,000
    
10. 8.79%
    
    Berrara
    
    Median price: $340,000

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