High rental yield suburbs: 7 of the best

Rental yields in Australia have never been higher than they are in 2023. Read on to find out why, along with our list of the best investment suburbs to help you get more bang for your property buck.

Why are rental yields so high in Australia right now?

Several factors have come together to create a high rental yield environment in many locations across Australia:

Rents have risen strongly due to limited housing supply and strong tenant demand. Vacancy rates are at record lows in most parts of Australia.
The limited housing supply is unlikely to change in the short term due to the surge in building costs.
International migration has bounced back strongly after the pandemic restrictions between 2020 and 2022 have been removed, ensuring ongoing rental demand.

If you want to take advantage of these factors to get the highest possible returns, then it makes sense to invest in the most lucrative suburbs. Here’s our top 7 list of the best suburbs to invest in right now.

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1. Edmonton, QLD: 6.8%

Edmonton is a suburb of Cairns in Far North Queensland. It currently has a very healthy rental yield of6.8%. Strong ongoing tenant demand in popular Cairns suburbs like Edmonton can be attributed to:

A$150 million expansion of the Cairns Marine Precinct.
A$50 million Cairns CBD university campus being developed.
The strategically important HMAS Cairns Navy Base receiving significant additional funding over the next decade as part of a $270 billion federal government commitment to boost the capabilities of Australia’s Defence Forces.

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2. Deception Bay, QLD: 5.8%

Deception Bay isa coastal suburb in the rapidly expanding Moreton Bay region of South East Queensland. It’s just over 40 kilometers from the Brisbane CBD. The current rental yield in Deception Bay is a very healthy 5.8%, and tenant demand for properties should continue to be driven by:

The recent launch of Australia’s newest university campus, USC Moreton Bay.
Massive infrastructure spending across South East Queensland (including the Moreton Bay region) ahead of the 2032 Brisbane Olympics.
The planned development of the Millat Moreton Bay, an innovation and entrepreneurship hub that will be twice the size of the Brisbane CBD.

3. Queanbeyan, NSW: 5.6%

Queanbeyan is a south-eastern region in New South Wales that borders the Australian Capital Territory. It currently has a strong rental yield of 5.6% and a favourable investment property outlook:

A very strong population growth projection (38% by 2041).
It’s located just 20 minutes from Canberra and 15 minutes from Canberra International Airport.

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4. Goulburn, NSW: 5.6%

Goulburn is a regional town in New South Wales, two hours from the Sydney CBD. Like Queanbeyan above, its current rental yield is 5.6%. Reasons you could have long-term confidence in buying an investment property in Goulburn include:

A solid population growth projection (16% by 2036).
The planned development of a fast rail corridor between Sydney and Canberra that includes Goulburn as a stop.
The current $150 million Goulburn Hospital redevelopment that is bringing jobs to the region.

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5. Lochinvar, NSW: 5.2%

Lochinvar is in the Hunter Valley Region in New South Wales and its rental yield is currently 5.2%. Long-term tenant demand in the area should be ensured by:

A solid population growth projection (18% by 2041).
The planned $1.5 billion Sydney-Newcastle rail upgrade project.
The jobs created by the $835 million John Hunter Health and Innovation Precinct redevelopment.

Regional NSW contains some hidden gems which are strong investment performers.

6. Holmview, QLD: 5.2%

Holmview is a developing suburb in the Logan region of Brisbane, about 40 kilometres from the CBD and about halfway to the Gold Coast. It currently has a rental yield of 5.2% and strong tenant demand in Holmview and the surrounding Logan region will likely continue due to:

The planned Olympic Rail Infrastructure Upgrade between Brisbane and the Gold Coast ahead of the 2032 Brisbane Olympics, making it easier for Logan residents to commute to work in Brisbane or the Gold Coast.
Other Olympic infrastructure spending projects across South East Queensland(including the Logan region) prior to 2032.
The planned $540 million expansion of Logan Hospital.

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7. Tahmoor, NSW: 5.1%

You’ll find Tahmoor in the Macarthur region along the Western Sydney growth corridor. It’s rental yield at the moment is a healthy 5.1% and strong tenant demand should be maintained long term via:

The $10 billion Western Sydney International Airport that’s currently under construction and due to open in 2026.
The proposed M9 Motorway to connect Tahmoor and the surrounding Macarthur region with Western Sydney and the Western Sydney International Airport.
Strong population growth (150% forecast for the Macarthur region over the next 20 years, making it the fastest growing area in New South Wales and the second fastest in Australia).

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How we can help

The best suburbs for investment property returns are those that offer both high rental yields and strong capital growth prospects. If you want to start - or continue - your investment property journey, then our team at DPN can help you every step of the way.

Services to maximise your investment return include:

Helping you to choose from our range of properties in high rental yield suburbs
Securing your finance
Ongoing property management

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