The best Melbourne suburbs for unit and apartment yields: Robert Larocca

Higher density housing is often viewed as an investment opportunity but like all property the outcome depends heavily on a range of factors.

This is apparent when the suburbs of Melbourne are ranked by their indicative gross yield over the past year for units. Using the RP Data Scorecard, the data applies to the year ending September and only includes suburbs with at least 500 dwelling to reduce variability.

Inner city Carlton tops the list with a yield of 6.9%. The neighbouring CBD is fourth on the list with a strong 5.9% which underscores why demand from investors is helping to drive the inner city high rise market.

Carlton has a lower rent than the CBD with a median asking price of $360 compared to $450.

The other three suburbs in the top five are at the more affordable end of the market from the perspective of median asking rents but still provide healthy yields. Broadmeadows has a median rent of $310 per week and a yield of 6%, Melton a median rent of $255 and yield of 5.8%. Neighbouring Melton South a median rent of $240 and yield of 5.6% has been recorded.

Does this make these suburbs good investment opportunities? That really depends on the actual property on offer and whether you are seeking a high weekly rent or a larger capital gain.


Robert Larocca is Victorian housing market specialist for RP Data.

 


Robert Larocca

Robert Larocca

Robert Larocca is Victorian housing market specialist for CoreLogic RP Data.

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