Australia's top 10 highest yield suburbs revealed
These 10 regional areas have become hotspots for investors seeking to secure up to 8 per cent rental yields and grow their positive cash flow.
New research by Hotspotting showed investors have moved to regional areas to secure high-yield properties nationwide.
The National Top 10 Positive Cash Flow Hotspots report revealed 10 locations across all states with high yields, low vacancy rates, and a median price between $225,000 and $560,000.
Hotspotting director, Terry Ryder, said regional areas across the country showed yields between 6 per cent and 8 per cent, with numerous factors supporting future capital growth.
“Whether it’s Blacks Beach in Mackay or a unit in Carlton in Melbourne, investors can secure properties that have the fundamentals for long-term cash flow and price performance,” Ryder said.
Here are the top 10 areas nationwide with high yields for both houses and units:
Blacks Beach – Mackay (houses and units)
Houses
Median house price: $508,000
Annual growth: 21 per cent
Rental yield: 5.9 per cent
Vacancy rate: 0.9 per cent
Units
Median unit price: $345,000
12-month growth: 14 per cent
Rental yield: 7.5 per cent
Vacancy rate: 1 per cent
Located a 15-minute from Mackay’s CBD, Blacks Beach has become a hotspot for veteran investors and first home buyers alike.
“The Mackay property market is being buoyed by improvements to its local economy built around various industries, including agriculture, horticulture, aquaculture, mining, manufacturing, construction and tourism,” Ryder said.
Additionally, Ryder said Blacks Beach’s location and easy access to the Whitsunday Islands have attracted residents from more expensive cities to the area.
Carlton – Melbourne (units)
Median unit price: $320,000
12-month growth: 10 per cent
Rental yield: 7.4 per cent
Vacancy rate: 2.6 per cent
Hotspotting general manager, Tim Graham, said Carlton property had been a busy market due to its proximity to the University of Melbourne, the CBD campus of RMIT University, and the Fitzroy campus of Australian Catholic University.
“According to ABS figures, almost 73 per cent of residents are renters and almost 18 per cent of properties are group households with 81 per cent of dwellings are apartments,” Graham said.
“While much of the Greater Melbourne market is lukewarm, Carlton’s unit market is achieving consistent transaction levels.”
Darwin City (units)
Median unit price: $427,000
12-month growth: -3 per cent
Rental yield: 8.4 per cent
Vacancy rate: 3.4 per cent
According to Hotspotting data, Darwin’s apartment market has the lowest median unit price of any Australian capital city despite continued population growth.
“According to the ABS, 98.6 per cent of properties within Darwin City are apartments and about three-quarters of residents are renters.
“Units in Darwin City are offering yields north of 8 per cent as well as affordable buy-in price points,” Ryder said.
Merbein – regional Victoria (houses)
Median house price: $353,000
12-month growth: 14 per cent
Rental yield: 6.9 per cent
Vacancy rate: 1.5 per cent
Graham said Merbein LGA has low vacancy rates and strong yields, making it a hub for investors, retirees, tree-changers, and first home buyers.
He said the strong population growth over the last couple of years has prompted development in Merbein, which is attracting even more investors.
“The region forms the northern end of the Murray River renewable energy zone, which is attracting billions of investment dollars and creating hundreds of local jobs through wind, solar and battery projects,” Graham said.
Moree – regional NSW (houses)
Median house price: $300,000
12-month growth: 2 per cent
Rental yield: 8 per cent
Vacancy rate: 2.3 per cent
Graham said Moree was a prime target for savvy investors, with the area poised for population growth and development.
“Moree is not only offering investors a yield of 8 per cent, but also a $300,000 median house price,” Graham said.
“The region will become a hub for agribusiness, logistics and food processing, capitalising on its existing agricultural industry and convenient transportation access.”
Port Augusta – regional South Australia (houses)
Median house price: $225,000
12-month growth: 6 per cent
Rental yield: 7.2 per cent
Vacancy rate: 1.8 per cent
Hotspotting data showed Port Augusta’s economy strengthened the property market with high rental yields homes selling fast.
“This strength is thanks largely to state economic advancements, an uplift in business confidence, a reviving resources sector and advances in renewable energy projects,” Graham said.
Ravenswood – Launceston (houses)
Median house price: $365,000
12-month growth: 9 per cent
Rental yield: 6.7 per cent
Vacancy rate: 1 per cent
Ryder said regional Tasmania has been showing early signs of a revival, especially in Launceston, where property prices remain affordable.
“[Ravenswood] continues to attract new residents and interstate investors, with infrastructure spending boosting its local economy,” he said.
Rivervale – Perth (units)
Median unit price: $475,000
12-month growth: 13 per cent
Rental yield: 7 per cent
Vacancy rate: 0.9 per cent
Located in the Belmont LGA near Perth CBD, Rivervale has become an investor hub, following recent urban regeneration, while remaining affordable.
“Perth is moving into a new phase with more buyers opting for units as houses become more and more expensive, and Rivervale is primed to take advantage of this,” Graham said.
Toolooa – Gladstone (houses)
Median house price: $380,000
12-month growth: 18 per cent
Rental yield: 6.3 per cent
Vacancy rate: 1.6 per cent
Located near the suburb of Gladstone, Toolooa is poised for growth.
“The Gladstone property market as a whole thrived in 2024,” Ryder said.
“Its major industrial hubs, including two of the world’s largest alumina refineries and the world’s fourth-largest coal exporting terminal, provide plenty of job opportunities leading to further demand within the property market.”
Zuccoli – Darwin (houses)
Median house price: $560,000
12-month growth: 7 per cent
Rental yield: 7.3 per cent
Vacancy rate: 1.7 per cent
Similarly to units, Hotspotting data showed Darwin’s houses have remained affordable compared to other capital cities.
“Within Palmerston, the majority of its suburbs have rising transaction levels, while Zuccoli has reached a plateau,” Graham said.
“It continues to offer an affordable lifestyle, and for investors, there are solid rental yields.”