Rental yield is one of the most important metrics for property investors. High yield means more cash flow from day one and lower reliance on capital growth to make a property work. Here are Melbourne’s 10 strongest rental yield suburbs based on GeeVee analysis of 2026 REIV, Domain and ABS data.
Top 10 Ranked by Gross Yield
| Rank | Suburb | Gross Yield (Houses) | Gross Yield (Units) | Median House Price | GeeVee Score |
|---|---|---|---|---|---|
| 1 | Dandenong | 5.8% | 6.4% | $748,000 | 7.5/10 |
| 2 | Springvale | 5.4% | 5.9% | $785,000 | 7.4/10 |
| 3 | Sunshine | 5.2% | 5.8% | $820,000 | 8.2/10 |
| 4 | Reservoir | 4.9% | 5.4% | $862,000 | 7.3/10 |
| 5 | Preston | 4.8% | 5.1% | $984,000 | 7.6/10 |
| 6 | Footscray | 4.7% | 5.3% | $895,000 | 8.0/10 |
| 7 | Braybrook | 4.7% | 5.2% | $756,000 | 7.9/10 |
| 8 | Coburg | 4.6% | 5.0% | $1,050,000 | 7.7/10 |
| 9 | Northcote | 4.5% | 4.9% | $1,720,000 | 8.0/10 |
| 10 | Brunswick | 4.4% | 4.8% | $1,240,000 | 7.9/10 |
What Makes These Suburbs High Yield?
High-yield suburbs share common characteristics: strong tenant demand relative to stock (vacancy rates below 1.5%), median house prices below $1M (making the yield maths work), proximity to employment centres and transport, and rental growth consistently above inflation.
High Yield vs High Growth
The suburbs at the top of the yield rankings (Dandenong, Springvale, Sunshine) are not Melbourne’s strongest capital growth suburbs. The inverse yield-growth relationship means you typically sacrifice one for the other. The exception is suburbs with both infrastructure catalysts AND high yield — Sunshine (Airport Rail Link), Footscray (hospital precinct), and Braybrook (Footscray spillover) are the strongest dual-metric plays in 2026.
Find High-Yield Off-Market Properties
The best high-yield properties rarely reach Domain or REA at full market asking price. Off-market acquisitions of tenanted investment properties — sold by landlords exiting their portfolios — often represent 5-10% below market value. Access these via the Collings portal: collings.com.au/portal
Find your next property with Collings
Track suburbs, get matched to on-market and off-market listings, and manage your whole property search in one place. Access the Collings property portal.
