Bayswater North rental yield sits at approximately 2.0% gross for houses and 2.7% gross for units based on current median sale prices and the ABS Census 2021 median rent of $360 per week — making it a suburb where capital growth has historically outpaced income returns, but where savvy investors can still build a strong portfolio position. This guide breaks down the real numbers, explains what drives yields in the area, and shows you how to put that data to work.

What Is the Rental Yield in Bayswater North Right Now?

To understand Bayswater North rental yield, you need to anchor the calculation in real, sourced figures rather than estimates. Here is exactly what the data shows:

Median Sale Prices (April to June 2025 Quarter)

• Houses: $920,000 (quarter-on-quarter +3.4%, year-on-year +1.1%) — source: DataVic/REIV via Collings CRM data
• Units: $690,000 (quarter-on-quarter -4.4%, year-on-year +6.8%) — source: DataVic/REIV via Collings CRM data

Median Rent

According to ABS Census 2021 data (via Collings CRM), the median rent in Bayswater North is $360 per week, which equates to $18,720 per year.

Gross Yield Calculation

Gross rental yield is calculated as annual rental income divided by purchase price, multiplied by 100.

• Houses: $18,720 / $920,000 x 100 = 2.03% gross yield
• Units: $18,720 / $690,000 x 100 = 2.71% gross yield

Net Yield Estimate

Net yield accounts for ongoing costs: property management fees, council rates, insurance, maintenance, and vacancy periods. As a conservative benchmark used across Melbourne’s inner and middle-ring suburbs, deducting roughly 25 to 35 percent of gross rental income for expenses produces the following estimates:

• Houses net yield (approx): 1.3% to 1.5%
• Units net yield (approx): 1.8% to 2.0%

These figures confirm that Bayswater North is a capital growth suburb rather than a high-income-yield suburb. Investors who purchase here are generally betting on long-term price appreciation, negative gearing benefits, and the suburb’s demographic stability rather than immediate cash flow. The ATO’s rental property guide confirms that negatively geared properties (where expenses exceed income) remain one of the most common structures for Australian property investors, particularly in growth corridors east of Melbourne.

For a broader comparison across Melbourne’s top-performing areas, see our guide to rental yield across Melbourne’s high-yield suburbs in 2026, which benchmarks Bayswater North against suburbs delivering 4% or more.

What Do the Demographics and Market Numbers Say About Investing in Bayswater North?

Numbers never exist in isolation. The demographic profile of a suburb explains why rents sit where they do and whether they are likely to rise. According to ABS Census 2021 data (via Collings CRM), Bayswater North has a population of 9,014 residents, a median age of 38.0 years, and a median household income of $1,675 per week.

That household income figure is important. A $1,675 per week household income puts median renters spending approximately 21.5% of gross income on rent at $360 per week — well within the broadly accepted 30% affordability threshold. This means the current rent level is sustainable and not under immediate upward pressure from affordability stress. It also means there is theoretical room for rents to rise modestly without displacing tenants, which is encouraging for investors holding property through 2026 and beyond.

Price Trajectory and What It Means for Yield

The April to June 2025 quarter recorded house price growth of +3.4% quarter-on-quarter and +1.1% year-on-year. Unit prices moved in the opposite direction short-term, falling 4.4% quarter-on-quarter, though they are still +6.8% year-on-year. This divergence matters for yield-focused investors:

• A falling unit price combined with stable or rising rent directly improves gross yield on new purchases.
• A rising house price compresses yield unless rents increase in parallel.
• Investors who purchased units 12 months ago are sitting on a 6.8% capital gain even before rental income — a strong combined return when added to even a modest 2.7% yield.

When evaluating Bayswater North property as an investment, the total return (capital growth plus yield) is almost always the more meaningful figure than yield alone.

What Are the Key Considerations for Investing in Bayswater North?

Beyond the raw yield percentages, experienced property investors weigh several factors before committing to a suburb. Here is what stands out for Bayswater North in 2026:

1. Vacancy Risk

SQM Research’s rolling data consistently places Melbourne’s eastern suburban corridor — which includes Bayswater North — at vacancy rates below 2%, a level widely regarded as a landlord’s market. Low vacancy means less time between tenants and more reliable rental income, which effectively improves real-world net yield beyond the theoretical calculation above.

2. Rental Growth Potential

CoreLogic data indicates that Melbourne-wide rents rose approximately 8 to 10% over the 2023 to 2024 period before moderating. Suburbs like Bayswater North, which attract stable working families (median age 38, established incomes), tend to retain tenants for longer, reducing churn costs but also moderating rental growth relative to high-turnover inner-city markets.

3. Infrastructure and Amenity

Bayswater North sits adjacent to Bayswater and benefits from proximity to the Kilsyth Road retail precinct, the Dandenong Ranges, and access to the Eastlink corridor. These amenity factors underpin tenant demand and support both rent levels and long-term capital values — the two levers that drive total investor return.

4. Property Type Selection

Given that unit prices fell 4.4% in the most recent quarter while remaining 6.8% ahead year-on-year, and given that units produce a materially higher gross yield (2.71% vs 2.03% for houses), units present a more yield-optimised entry point in the current market. Investors who are sensitive to cash flow rather than pure capital growth should weight their analysis accordingly.

If you are exploring yield-optimised property types across Melbourne, our resource on investment properties in Melbourne including high-yield units and townhouses is a useful starting point for comparing asset classes.

5. Tax and Structure

The ATO’s rental income and deductions framework allows investors to claim mortgage interest, depreciation, rates, insurance, property management fees, and repairs. For a $920,000 house at 80% LVR with a 6.2% interest rate (RBA cash rate context, mid-2026), annual interest alone would exceed rental income by approximately $25,000 to $28,000 — producing a negatively geared position that generates a tax deduction. Whether that suits your structure depends on your personal tax position and should be confirmed with a qualified accountant.

How Does Collings Real Estate Help Investors in Bayswater North?

Collings Real Estate has spent decades working with investors across Melbourne’s inner and middle-ring suburbs, and the approach is the same whether you are buying your first investment property or adding to an existing portfolio: start with data, then apply local knowledge that no algorithm can replicate.

Off-Market Access

A significant proportion of investment-grade properties in suburbs like Bayswater North never reach public listing portals. Collings maintains an active network of off-market opportunities, which means qualified investors frequently access stock before it is advertised — often at prices that reflect a less competitive environment. You can explore off-market investment property opportunities in Melbourne through the Collings portal.

Yield Analysis and Due Diligence

Our property strategists can model gross and net yield scenarios for specific properties, incorporating actual body corporate fees (for units), maintenance history, and local vacancy data. This moves investors beyond theoretical yield into real-world return modelling before they sign a contract.

Property Management

For investors who purchase in Bayswater North, Collings provides full property management services from our office at 230 Waterdale Road, Ivanhoe VIC 3079. Our team handles tenant selection, lease management, maintenance coordination, and rent reviews — protecting yield by minimising vacancy and maximising rent at each renewal cycle.

Portal Registration

Investors who register on the Collings investor portal receive early alerts on investment-grade listings, including off-market deals, before they reach the broader market. Register at the Collings investor portal to be notified first.

To speak directly with a strategist, call 03 9486 2000 or email info@collings.com.au.

Frequently Asked Questions About Bayswater North Rental Yield

The following questions are among the most common we hear from investors researching rental Bayswater North opportunities.

Is Bayswater North a good suburb for rental investment?

Bayswater North suits investors prioritising capital growth over immediate income. Gross yields of 2.0% to 2.7% are below Melbourne’s highest-yield suburbs, but the suburb’s stable demographics, low vacancy rates, and steady price growth make it a sound long-term hold. Units currently offer a better yield entry point than houses.

What is the median rent in Bayswater North?

According to ABS Census 2021 data, the median rent in Bayswater North is $360 per week ($18,720 per year). Actual market rents in 2026 may differ; Collings can provide current appraisal data for specific properties.

How do I calculate rental yield for a Bayswater North property?

Divide annual rental income by the purchase price and multiply by 100. For example: a unit purchased at $690,000 returning $360 per week ($18,720 per year) produces a gross yield of 2.71%. Deduct management fees, rates, insurance, and maintenance costs to arrive at net yield.

Are units or houses better for yield in Bayswater North?

Based on current DataVic/REIV median prices (April to June 2025 quarter), units produce a higher gross yield (2.71%) than houses (2.03%). Units also recorded stronger year-on-year price growth at 6.8% versus 1.1% for houses, making them the stronger combined-return option at present.

Where can I find off-market investment properties in Bayswater North?

Collings Real Estate maintains a network of off-market listings across Melbourne’s eastern suburbs, including Bayswater North. Register on the Collings investor portal at collings.com.au/portal or call 03 9486 2000 to discuss your brief with a property strategist.

Conclusion

Bayswater North rental yield of approximately 2.0% gross for houses and 2.7% gross for units places this suburb firmly in the capital-growth category of Melbourne’s investment landscape. With a stable population of 9,014, a median household income of $1,675 per week, and median rents at $360 per week (ABS Census 2021), the suburb’s fundamentals are sound even if headline yield figures are modest. Investors who understand total return — combining income yield with price appreciation that reached 6.8% year-on-year for units — will find Bayswater North a compelling addition to a diversified portfolio. Talk to a Collings property strategist today to get a current rental appraisal and access off-market opportunities that never appear on public portals.

Related Posts

• dandenong north rental yield