Pascoe Vale South rental yield sits at approximately 3.2% gross for houses and 3.2% gross for units based on current median sale prices and median weekly rents recorded in the suburb. While those headline numbers look similar, the story behind them — rising house values, softening unit prices, and a tightly held rental market — gives investors a more nuanced picture to work with heading into 2026.

What Is the Pascoe Vale South Rental Yield Right Now?

Calculating gross rental yield is straightforward: divide the annual rent by the purchase price, then multiply by 100. Using data from DataVic/REIV (via Collings CRM) for the April to June 2025 quarter and ABS Census 2021 figures for median rent, the numbers shake out as follows.

House Yield Calculation

• Median sale price (houses): $1,230,000 (Apr-Jun 2025 quarter, QoQ +16.9%, YoY +0.4%)
• Median weekly rent (all dwellings): $425/week (ABS Census 2021, via Collings CRM)
• Annual rental income: $425 x 52 = $22,100
• Gross yield: $22,100 / $1,230,000 = approximately 1.8%

It is worth noting that the ABS Census 2021 median rent of $425 per week covers all dwelling types across the suburb. Current asking rents for houses in inner-north Melbourne have moved considerably since 2021. SQM Research data for mid-2025 points to asking rents for three-bedroom houses in the broader Pascoe Vale South postcode running closer to $550 to $600 per week, which lifts the gross yield on a $1.23M house to roughly 2.3% to 2.5%. That is a more realistic current benchmark for houses in this price bracket.

Unit Yield Calculation

• Median sale price (units): $700,000 (Apr-Jun 2025 quarter, QoQ +8.7%, YoY -3.8%)
• Estimated median weekly rent (units, current market): approximately $430 to $460/week
• Annual rental income (midpoint $445/wk): $445 x 52 = $23,140
• Gross yield: $23,140 / $700,000 = approximately 3.3%

Units in Pascoe Vale South present a notably stronger gross yield than houses at this point in the cycle. With the unit median price down 3.8% year-on-year while rents have held firm, the yield-on-purchase metric has improved for buyers entering now. Investors comparing suburbs across the inner north should also review the high rental yield suburbs Melbourne 2026 guide for a broader competitive picture.

Net Yield: What Do Investors Actually Keep?

Gross yield is the starting point, not the finish line. Net yield strips out the holding costs that every landlord faces. For a typical investment property in Victoria in 2025/26, those costs include:

• Property management fees (typically 7% to 10% of collected rent in Melbourne)
• Council rates, water, and land tax (varies by property and portfolio size)
• Insurance premiums
• Maintenance and repairs (a common rule of thumb is 1% of property value per year)
• Vacancy periods (SQM Research currently records Melbourne’s inner-north vacancy rate at under 2%)

After these costs, net yield on a $700,000 Pascoe Vale South unit earning $445/week typically lands in the 2.0% to 2.5% range. On a $1.23M house at $580/week rent, net yield is likely closer to 1.5% to 1.8%. These are not high-income plays — they are capital-growth-led investments, which is consistent with the suburb’s profile.

The Australian Taxation Office (ATO) reported in its most recent investor statistics that over 70% of Victorian residential property investors with a single investment property record a net rental loss, commonly known as negative gearing. Pascoe Vale South’s yield-to-price ratio means many investors here will fall into that category, using the tax offset to reduce holding costs while banking on long-term capital appreciation.

What Do the Demographics Say About Investing in Pascoe Vale South?

Yield calculations only make sense in the context of who rents in the suburb and how stable that demand is. ABS Census 2021 (via Collings CRM) paints a picture of a solidly established inner-suburban community.

• Population: 10,534 residents
• Median age: 39.0 years
• Median household income: $2,246 per week
• Median rent: $425 per week

A median household income of $2,246 per week — roughly $116,800 annually — signals a tenant cohort with strong repayment capacity. Rent-to-income ratios in Pascoe Vale South are well within what most housing economists consider affordable stress thresholds (typically 30% of gross income), which supports rental stability and low arrears risk.

The median age of 39 is consistent with a suburb attracting professional couples and young families, a demographic that tends to take longer-term leases and maintain properties well. For investors, this translates to lower vacancy and turnover costs — both of which directly protect net yield.

Pascoe Vale South sits roughly 10 kilometres north of the Melbourne CBD, with access to the Upfield train line via Pascoe Vale station and strong proximity to Coburg and Brunswick amenities. CoreLogic data consistently identifies this radius from the CBD as a sweet spot for rental demand, particularly among tenants priced out of the inner ring but unwilling to sacrifice commute times.

What Are the Key Considerations Before Investing in Pascoe Vale South?

A gross yield of 2.3% to 3.3% might appear modest against higher-yielding regional alternatives, but investors need to weigh several factors specific to this suburb and property type.

House Prices Are Rising Sharply

The 16.9% quarter-on-quarter increase in the house median (DataVic/REIV, Apr-Jun 2025) is exceptional and warrants careful interpretation. A single-quarter spike of this magnitude often reflects a thin sales volume with several premium results skewing the median rather than broad-based price growth. Investors should review individual comparable sales rather than relying solely on the median figure when assessing entry price.

Unit Values Have Softened

The unit median is down 3.8% year-on-year to $700,000 (DataVic/REIV, Apr-Jun 2025). This is not alarming in isolation — Melbourne’s unit market broadly experienced headwinds through 2024 as interest rates peaked and investor sentiment cooled. However, it does mean buyers purchasing units now are entering at a lower base, which can be advantageous from a yield-on-purchase perspective and positions them for recovery upside if the cycle turns.

Land Tax Exposure

Victoria’s land tax threshold changes implemented in recent years mean investors holding properties with site values above the relevant threshold face an increasing annual liability. For houses in Pascoe Vale South at $1.23M, land value is likely to exceed many investors’ aggregate thresholds, adding a meaningful holding cost that erodes net yield further.

Strata and Body Corporate Costs for Units

Units in older Pascoe Vale South blocks can carry body corporate levies ranging from $2,000 to $8,000 per year depending on building age and services. These costs must be factored into net yield calculations. Investors specifically interested in unit blocks in Melbourne as whole-building purchases can sometimes improve their yield position by controlling all management costs directly.

Rental Demand Is Structurally Supported

Despite the yield compression, vacancy in the inner-north Melbourne rental market remains tight. SQM Research data shows the 3044 postcode (which includes Pascoe Vale South) consistently tracks below 2% vacancy. This structural undersupply — driven by population growth, net overseas migration, and constrained new housing supply — provides rental income security even when gross yields look thin on paper.

For investors wanting a comparison with a neighbouring suburb, the rental yield in Northcote analysis from Collings provides a useful benchmark given the similar demographic and price profile of that market.

How Does Collings Real Estate Help Investors in Pascoe Vale South?

Collings Real Estate has managed investment properties across Melbourne’s inner north for decades. Our team understands the specific dynamics of the Pascoe Vale South property market — from identifying the right entry price to managing tenancies in a way that protects both yield and long-term asset value.

Off-Market Access

Many of the best investment acquisitions in suburbs like Pascoe Vale South never reach public portals. Collings maintains an active network of vendor relationships and off-market opportunities that allow registered investors to move before a property is widely marketed. Accessing investment properties in Melbourne through an off-market channel can mean purchasing at a sharper price, which directly improves the yield calculation from day one.

Investor Portal

Our dedicated investor portal gives registered buyers early access to new listings, suburb data updates, and direct contact with our property strategists. You can register at collings.com.au/portal to receive Pascoe Vale South opportunities as they arise.

Full Property Management

Collings provides end-to-end property management services across Melbourne’s inner north. Our team handles tenant selection, lease preparation, maintenance coordination, and rent reviews — all structured to maximise net yield while minimising vacancy and arrears. Our office is located at 230 Waterdale Road, Ivanhoe VIC 3079. Call us on 03 9486 2000 or email info@collings.com.au to discuss your Pascoe Vale South investment goals.

If you are ready to get serious about your next acquisition, talk to a Collings property strategist today. We combine on-the-ground market knowledge with suburb-level data to help you identify the right property at the right price — and then manage it to its full income potential.

Frequently Asked Questions About Pascoe Vale South Rental Yield

What is the current gross rental yield for houses in Pascoe Vale South?

Based on a median house price of $1,230,000 (DataVic/REIV, Apr-Jun 2025 quarter) and estimated current market rents of $550 to $600 per week for a three-bedroom house, the gross rental yield for houses in Pascoe Vale South is approximately 2.3% to 2.5%.

What is the gross rental yield for units in Pascoe Vale South?

With a median unit price of $700,000 (DataVic/REIV, Apr-Jun 2025 quarter, down 3.8% year-on-year) and estimated market rents of $430 to $460 per week, the gross yield on units is approximately 3.2% to 3.4%, making units the higher-yielding entry point in this suburb.

Is Pascoe Vale South good for property investment?

Pascoe Vale South offers a stable, high-income tenant base (median household income $2,246/week per ABS Census 2021), low vacancy rates, and strong proximity to the CBD. It is primarily a capital-growth-led market, so investors should enter with a medium-to-long term horizon rather than expecting high income returns in the short term.

What is the vacancy rate in Pascoe Vale South?

The broader 3044 postcode, which includes Pascoe Vale South, consistently records vacancy rates below 2% according to SQM Research data. This tight rental market supports rental income stability and reduces the risk of extended vacancy periods for investors.

How do I find investment properties in Pascoe Vale South?

Collings Real Estate specialises in investment property across Melbourne’s inner north, including Pascoe Vale South. Registering on the Collings investor portal at collings.com.au/portal gives you early access to both listed and off-market properties in the suburb. You can also contact the team directly on 03 9486 2000.