Melbourne offers diverse investment opportunities for property investors seeking high rental yields. These suburbs are characterized by strong rental demand, affordability, and proximity to amenities. Below is a detailed overview of some of the top-performing suburbs for rental yield in Melbourne.

Top Suburbs for Houses

  • Coolaroo (North West Melbourne) – Rental Yield: 4.5% – Median Rental Value: $470/week – Median House Price: Approximately $540,000 to $545,000.
  • Campbellfield (North West Melbourne) – Rental Yield: 4.5% – Median Rental Value: $472/week – Median House Price: Approximately $612,500.
  • Melton (West Melbourne) – Rental Yield: 4.4% – Median Rental Value: $403/week – Median House Price: Approximately $477,000.
  • Meadow Heights (North West Melbourne) – Rental Yield: 4.4% – Median Rental Value: $471/week – Median House Price: Approximately $583,500.
  • Melton South (West Melbourne) – Rental Yield: 4.4% – Median Rental Value: $412/week – Median House Price: Approximately $488,000.
  • Jacana (North West Melbourne) – Rental Yield: 4.3% – Median Rental Value: $458/week – Median House Price: Approximately $455,000.
  • Broadmeadows (North West Melbourne) – Rental Yield: 4.3% – Median Rental Value: $457/week – Median House Price: Approximately $570,000.

Top Suburbs for Units

  • Carlton (Inner Melbourne) – Rental Yield: 7.8% – Median Rent: $525/week – Median Unit Price: Approximately $447,500.
  • Melbourne CBD – Rental Yield: Up to 8.1% – Median Rent: $640/week – Median Unit Price: Approximately $413,000.
  • Notting Hill (South East Melbourne) – Rental Yield: 7.6% – Median Rent: $500/week – Median Unit Price: Approximately $340,000.
  • Travancore (North West Melbourne) – Rental Yield: 7.0% – Median Rent: $500/week – Median Unit Price: Approximately $374,000.

Emerging Suburbs

Suburbs like Wyndham Vale (South West Melbourne) and Caroline Springs (Outer Western Melbourne) offer promising opportunities due to their affordability and growing demand.

Factors Driving High Yields

Suburbs with high rental yields often share the following characteristics:

  • Proximity to universities, business districts, or transport hubs.
  • Limited housing supply driving up rental prices.
  • Economic activity attracting workers and tenants.
  • Lifestyle appeal, such as cultural amenities or natural attractions.

Tips for Investors

When investing in Melbourne’s property market, consider the following:

  • Focus on suburbs with both high rental yields and potential for capital growth.
  • Investigate local market trends and consult experts to identify promising areas.
  • Consider properties near transport links or growing industries to maximize returns.