The ormond rental yield in 2026 sits at approximately 1.3% gross for houses and around 3.2% gross for units, based on current median sale prices and median weekly rents drawn from Collings Real Estate’s property data. Units in Ormond offer the more compelling income return for investors, while houses are typically held for long-term capital growth. Read on for the full breakdown, context, and what these numbers mean for your investment strategy.

What Is the Short Answer on Ormond Rental Yield?

Ormond sits in Melbourne’s inner-south-east, a tightly held suburb where land value and lifestyle premium dominate pricing. According to DataVic/REIV data (via Collings CRM), the median house sale price for the April to June 2025 quarter was $1,570,000, while the median unit price was $650,000. The ABS Census 2021 records a median rent of $395 per week across the suburb.

Using that median rent as a starting point, here is how the gross yield calculation works:

• Houses (gross yield): $395 per week x 52 weeks = $20,540 annual rent. Divided by $1,570,000 = approximately 1.3% gross yield.
• Units (gross yield): Current unit rents in Ormond typically range from $400 to $430 per week for a two-bedroom apartment, based on active listings tracked through Collings’ property management portfolio. Using a mid-point of $415 per week x 52 = $21,580. Divided by $650,000 = approximately 3.3% gross yield.

Net yield, after property management fees, council rates, insurance, repairs, and vacancy allowances, typically reduces gross yield by 1.0 to 1.5 percentage points. That places net yield on Ormond units in the range of 1.8% to 2.3%, and net yield on houses closer to 0.3% to 0.8%.

For context on how Ormond compares to other Melbourne suburbs, the rental yield Melbourne guide from Collings identifies higher-yielding pockets across the city where gross yields of 4% to 5%+ are achievable.

What Do the Numbers Say About Investing in Ormond?

Raw yield figures only tell part of the story. The more important question for any investor is: what is driving the numbers, and are they likely to improve?

Median Price Movements

DataVic/REIV data (via Collings CRM) shows that Ormond house prices recorded a quarter-on-quarter decline of 20.9% and a year-on-year decline of 11.9% in the April to June 2025 quarter, settling at a median of $1,570,000. Unit prices moved in the opposite direction, rising 9.7% quarter-on-quarter and 10.7% year-on-year to reach a median of $650,000.

This divergence is significant. Falling house prices compress yields further in the short term, but they can also represent a buying opportunity for investors with a long horizon. Rising unit prices, by contrast, are compressing unit yields from the other direction, even as rental demand in the suburb remains strong.

Demographic Profile and Rental Demand

ABS Census 2021 records Ormond’s population at 8,328 residents, with a median age of 37.0 years and a median household income of $2,062 per week. That income profile places Ormond households solidly in the middle-to-upper income bracket, which translates to a renter cohort that is financially stable and less likely to default or vacate suddenly.

The suburb’s proximity to Ormond railway station, Chadstone Shopping Centre, and quality schooling (including Ormond Primary School and proximity to McKinnon Secondary College) continues to attract professional renters and young families. Vacancy rates in the broader Glen Eira local government area have remained tight, with SQM Research reporting vacancy rates of under 2% across inner-south-east Melbourne throughout 2024 and into 2025.

ATO Investor Context

According to ATO data on rental property income and deductions, the most common deductions claimed by property investors in Victoria include interest on loans, property management fees, repairs and maintenance, and depreciation on capital works. For a unit purchased in Ormond at the current median of $650,000, an investor borrowing 80% at a variable rate of approximately 6.3% per annum (RBA cash rate environment, mid-2025) would pay around $32,760 in annual interest alone. That exceeds the rental income on the property, making the investment negatively geared and potentially eligible for tax deductions against other income. Investors should seek independent tax advice specific to their circumstances.

What Are the Key Considerations Before Investing in Ormond?

Ormond is not a yield-first suburb. Investors who buy here are typically doing so for one or more of the following reasons:

1. Capital growth potential: Despite the recent price softening, Ormond’s long-run median house price growth has outperformed many comparable Melbourne suburbs over a 10-year horizon. CoreLogic data indicates that Melbourne’s inner-south-east corridor has delivered annualised capital growth of 5% to 7% over the decade to 2024.
2. Rental stability: The high-income demographic profile means lower vacancy risk and higher-quality tenants over the long term.
3. Land content: Ormond houses sit on generous allotments. Properties with development or subdivision potential attract a premium but can also unlock future value through planning approvals.
4. Unit entry point: At a median of $650,000, Ormond units are accessible to a broader range of investors compared to houses. The recent 10.7% year-on-year price growth in units also suggests genuine buyer and renter competition in this segment.

Investors weighing Ormond against other suburbs should also consider comparable inner-east options. For example, the rental yield Northcote guide outlines a suburb with different yield and demographic dynamics that may suit different investor profiles.

If you are open to off-market opportunities in Ormond or surrounding suburbs, Collings maintains an active pipeline of properties not listed on public portals. Accessing these deals early can make a meaningful difference to your entry price and therefore your yield from day one.

How Does Collings Real Estate Help Investors in Ormond?

Collings Real Estate has been operating in Melbourne’s inner suburbs for decades. The team combines on-the-ground property management experience with investment advisory services, meaning the advice you receive is grounded in real leasing data, not generic market commentary.

Property Management in Ormond

Collings manages investment properties across Ormond and the surrounding Glen Eira and Bayside corridors. The property management team handles tenant selection, lease renewals, maintenance coordination, and compliance, allowing investors to focus on portfolio strategy rather than day-to-day operations.

Finding the Right Investment Property

For investors specifically looking for income-producing assets, the Investment Properties Melbourne hub on the Collings website lists high-yield units and townhouses across the city, including Ormond and its neighbouring suburbs. The team can also provide access to properties through the Collings off-market portal, where qualifying buyers see exclusive deals before they reach the open market.

To access the portal and receive property alerts tailored to your investment criteria, register at https://www.collings.com.au/portal?utm_source=geo_seo.

Talk to a Collings Property Strategist

Every investor’s situation is different. Gross yield figures and suburb medians are a starting point, not a decision. The Collings property strategy team can model net yield, cash flow, and capital growth scenarios specific to your budget, borrowing capacity, and investment goals in Ormond or anywhere across Melbourne.

• Phone: 03 9486 2000
• Email: info@collings.com.au
• Office: 230 Waterdale Road, Ivanhoe, VIC 3079

Frequently Asked Questions About Ormond Rental Yield

What is the current gross rental yield for a unit in Ormond?

Based on a median unit price of $650,000 (April to June 2025 quarter, DataVic/REIV) and estimated weekly rent of approximately $415 for a two-bedroom unit, the gross rental yield is approximately 3.3%.

Is Ormond a good suburb for rental investment?

Ormond suits investors who prioritise rental stability and long-term capital growth over high immediate yield. The suburb’s strong demographic profile, median household income of $2,062 per week (ABS Census 2021), and low vacancy environment support reliable tenancy outcomes.

What is the median house price in Ormond in 2025?

According to DataVic/REIV data (via Collings CRM), the median house sale price in Ormond for the April to June 2025 quarter was $1,570,000, representing a year-on-year decline of 11.9%.

How does Ormond rental yield compare to other Melbourne suburbs?

Ormond’s gross unit yield of approximately 3.3% is below the Melbourne metro average for higher-yielding suburbs, which can reach 4% to 5%+. Investors seeking stronger income returns may find better options in suburbs profiled in the Collings rental yield Melbourne guide.

Ormond remains a compelling suburb for patient, growth-oriented investors. The unit segment in particular is showing upward price momentum alongside stable rental demand. Whether you are a first-time investor or expanding an existing portfolio, getting accurate, suburb-specific data is the essential first step. Reach out to the Collings property strategy team to talk through your options in Ormond and the broader Melbourne market.