Burwood Vic rental yield for houses currently sits at approximately 2.8% to 3.2% gross, while units and apartments deliver a stronger 3.8% to 4.5% gross yield, making the suburb a credible option for Melbourne investors seeking a balance of capital growth and rental income. Read on for a full breakdown of the numbers, what they mean after costs, and how to position your next purchase for maximum return.
What Is the Rental Yield in Burwood Vic Right Now?
Burwood is a well-established middle-ring suburb sitting approximately 16 kilometres east of Melbourne’s CBD, within the Whitehorse local government area. Its appeal to renters is strong: good access to Box Hill’s retail and medical precinct, multiple tram and bus routes, and proximity to quality schools make it perennially popular with families and young professionals alike.
According to CoreLogic data for the 12 months to June 2026, the suburb’s key metrics are:
- Median house price: approximately $1.38 million
- Median weekly house rent: approximately $730 per week
- Gross house yield: approximately 2.75% to 3.0%
- Median unit price: approximately $680,000
- Median weekly unit rent: approximately $560 per week
- Gross unit yield: approximately 4.3%
These figures align with broader trends identified in our guide to rental yield Melbourne suburbs in 2026, where middle-ring unit markets continue to outperform detached houses on yield, even as houses retain stronger long-run capital growth credentials.
Gross Yield vs Net Yield: What Is the Difference?
Gross yield is simply annual rent divided by purchase price, expressed as a percentage. Net yield strips out the real costs of ownership. For a typical Burwood investment property, those costs include:
- Property management fees (typically 6% to 8.5% of gross rent in metropolitan Melbourne)
- Council rates (averaging around $1,800 to $2,200 per year for Whitehorse LGA properties)
- Water rates (owner pays fixed charges; tenant pays usage)
- Insurance (landlord and building)
- Maintenance and repairs (a common rule of thumb is 1% of property value per year)
- Body corporate levies (for units and apartments)
Once these costs are deducted, a gross unit yield of 4.3% in Burwood typically translates to a net yield of roughly 3.1% to 3.5%. For houses, a gross yield of 2.9% commonly falls to a net yield of around 1.8% to 2.2%. The ATO allows investors to claim many of these expenses as deductions against rental income, which can materially improve after-tax cash flow, particularly for investors in higher marginal tax brackets.
What Do the Numbers Say About Investing in Burwood Vic?
The headline yield figures need context. Burwood is not a suburb investors choose purely for income. CoreLogic’s 10-year annualised capital growth rate for Burwood houses is approximately 6.2% per annum, meaning total return (yield plus growth) has historically been competitive with higher-yielding but slower-growth suburbs further from the CBD.
SQM Research’s latest vacancy rate data (May 2026) places Burwood’s vacancy rate at 1.4%, well below the 3% threshold typically considered a balanced rental market. A tight vacancy rate of this level signals strong rental demand, which supports rent growth and reduces the risk of extended vacant periods between tenancies.
Rental growth has also been meaningful. According to PropTrack data, median weekly rents in Burwood have risen by approximately 12% over the two years to June 2026, reflecting a combination of strong population growth in Melbourne’s eastern suburbs and constrained new housing supply in established middle-ring areas.
Units vs Houses: Which Performs Better for Yield in Burwood?
For pure yield, units win clearly. A two-bedroom unit purchased at the median of $680,000 and renting at $560 per week generates a gross yield of 4.28%. A three-bedroom house at $1.38 million renting at $730 per week yields only 2.75%. The difference is almost 1.5 percentage points, which is significant at these price points.
However, houses in Burwood carry lower body corporate levies, tend to attract longer-tenure family tenants, and have historically recorded stronger capital growth. Investors comparing investment properties across Melbourne often weigh these trade-offs carefully before committing to a property type.
What Are the Key Considerations for Rental Burwood Vic Investors?
Investing in Burwood Vic requires attention to several factors beyond the headline yield number.
Land Tax and Holding Costs
Victoria’s land tax thresholds apply to investment properties. At Burwood’s median house price, the land component (typically 40% to 50% of the total value on established suburban lots) is likely to attract annual land tax in the range of $2,500 to $4,000, depending on an investor’s total portfolio land value. This cost should be factored into net yield calculations.
Depreciation Benefits
Newer units and townhouses in Burwood carry significant depreciation schedules. A quantity surveyor’s report on a recently constructed two-bedroom unit can identify $8,000 to $15,000 in annual depreciation deductions in the early years of ownership, which directly reduces taxable income and improves after-tax cash flow. The ATO permits deductions on both the building structure (Division 43) and plant and equipment (Division 40) for investment properties.
Tenant Profile and Demand Drivers
Burwood’s rental demand is underpinned by several structural factors:
- Proximity to Deakin University’s Burwood campus, which drives consistent demand for two and three-bedroom units
- Access to Box Hill Hospital and the broader Box Hill medical precinct, attracting healthcare workers
- Good public transport options, including trams on Burwood Road and bus connections to Box Hill and Glen Waverley
- A high proportion of owner-occupiers (around 70%), which keeps the rental market supply-constrained
These demand drivers have kept vacancy rates below 2% in Burwood for most of the past three years, according to SQM Research, providing investors with a reliable income base.
How Does Burwood Compare to Nearby Suburbs?
Investors benchmarking Burwood against other eastern suburbs will find that Box Hill units yield slightly more (approximately 4.6% gross) while Camberwell house yields are marginally lower (approximately 2.5%). For a broader comparison of high-performing Melbourne suburbs, the 2026 Melbourne rental yield guide provides a detailed suburb-by-suburb breakdown.
How Does Collings Real Estate Help Investors in Burwood Vic?
Collings Real Estate has been operating in Melbourne’s inner and middle-ring markets for decades, with deep experience in identifying properties that deliver both yield and capital growth. For investors focused on Burwood Vic property, the team provides:
- Rental appraisals: Accurate, current assessments of what a specific property can achieve on the rental market, not just suburb-level medians
- Yield analysis: Gross and net yield modelling tailored to an individual property’s costs, depreciation profile, and financing structure
- Off-market access: Many high-quality Burwood investment properties never reach the public portals. Registering on the Collings off-market property portal gives investors early access to these opportunities before they are listed publicly
- Property management: Ongoing tenancy management to protect yield through careful tenant selection, timely maintenance, and proactive rent reviews
- Strategic guidance: Helping investors decide between house and unit purchases, standalone versus strata title, and new versus established stock
For investors also considering unit block acquisitions, which can significantly improve portfolio yield through scale, the Collings team specialises in sourcing and managing unit blocks for sale in Melbourne that are suitable for both seasoned and first-time commercial property investors.
Frequently Asked Questions About Burwood Vic Rental Yield
What is the average rental yield for units in Burwood Vic?
Based on CoreLogic data to June 2026, the average gross rental yield for units in Burwood Vic is approximately 4.3%, with net yields typically falling in the range of 3.1% to 3.5% after management fees, rates, insurance, and maintenance costs are deducted.
Is Burwood Vic a good suburb for property investment?
Yes, for investors seeking a combination of income and capital growth. Burwood’s vacancy rate of approximately 1.4% (SQM Research, May 2026) signals strong rental demand, while 10-year capital growth of around 6.2% per annum (CoreLogic) provides meaningful wealth-building potential over the long term.
What drives rental demand in Burwood Vic?
Key demand drivers include proximity to Deakin University’s Burwood campus, access to the Box Hill medical precinct, good tram and bus connections, and the suburb’s reputation for quality schools. These factors attract students, healthcare workers, and families seeking long-term rental accommodation.
How is net yield calculated for a Burwood investment property?
Net yield is calculated by subtracting all annual holding costs (management fees, council and water rates, insurance, maintenance, body corporate where applicable, and land tax) from gross annual rent, then dividing the result by the purchase price. For a typical Burwood unit, this reduces a 4.3% gross yield to approximately 3.1% to 3.5% net.
For a tailored analysis of what a specific Burwood Vic property can earn, talk to a Collings property strategist today. Our team combines current market data with deep local knowledge to help you make confident investment decisions.
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