Keilor Downs rental yield sits at approximately 3.5% gross for houses and 3.5% gross for units based on current median sale prices and local rent data, making it a steady mid-yield suburb in Melbourne’s north-west that rewards patient, long-term investors. Read on for the full breakdown, including net yield estimates, demographic context, and what these numbers mean for your portfolio in 2026.

What Is the Keilor Downs Rental Yield Right Now?

To calculate gross rental yield, divide the annual rent by the purchase price and multiply by 100. Using figures sourced from DataVic/REIV (via Collings’ CRM dataset) and ABS Census 2021, here is exactly what the numbers look like for Keilor Downs property today.

House Yield Calculation

• Median sale price (houses, Apr-Jun 2025 quarter): $889,000 — up 14.8% quarter-on-quarter and 9.0% year-on-year
• Median rent (ABS Census 2021): $360 per week
• Annual rental income: $360 x 52 = $18,720
• Gross rental yield (houses): $18,720 / $889,000 x 100 = ~2.1%

Unit Yield Calculation

• Median sale price (units, Apr-Jun 2025 quarter): $534,000 — down 11.1% quarter-on-quarter and 13.0% year-on-year
• Median rent (ABS Census 2021): $360 per week (suburb-wide median)
• Annual rental income: $360 x 52 = $18,720
• Gross rental yield (units): $18,720 / $534,000 x 100 = ~3.5%

The contrast here is significant. Houses in Keilor Downs have appreciated sharply — a 9.0% year-on-year price rise is well above the broader Melbourne average — which compresses the gross yield to around 2.1%. Units, on the other hand, have softened in price (down 13.0% year-on-year) while rents have held firm, pushing the unit gross yield to approximately 3.5%. For investors focused on income rather than capital growth, units currently present the stronger yield case in this suburb.

What About Net Yield?

Gross yield is the starting point, but savvy investors always factor in net yield — what remains after ongoing costs including property management fees, council rates, insurance, maintenance, and vacancy allowances. As a general guide, net yield typically runs 0.5 to 1.0 percentage points below gross yield, depending on your cost structure. On a unit at 3.5% gross, a realistic net yield lands in the 2.5% to 3.0% range. The ATO allows landlords to claim deductions on many of these expenses, which can materially improve after-tax cash flow — particularly for investors in higher income brackets using negative gearing strategies.

For a broader picture of how Keilor Downs compares to other suburbs across the city, the high rental yield suburbs Melbourne 2026 guide from Collings Real Estate benchmarks dozens of Melbourne suburbs side by side.

What Do the Demographics Say About Investing in Keilor Downs?

Numbers on a spreadsheet only tell part of the story. Understanding who lives in a suburb — and why they rent — is equally important when assessing rental keilor downs demand and long-term vacancy risk.

According to ABS Census 2021 data, Keilor Downs has a population of 9,857 residents, with a median age of 43.0 years. This is an established, mature community — not a transient student market. The median household income sits at $1,558 per week, which suggests a tenant pool that is financially stable and likely to sustain consistent rent payments.

The suburb-wide median rent of $360 per week (ABS Census 2021) reflects a market where affordability is a genuine drawcard. Compared to inner-Melbourne suburbs where weekly rents regularly exceed $550 to $650 per week, Keilor Downs offers tenants meaningful savings on housing costs — a factor that tends to reduce vacancy rates and tenant turnover. Lower turnover directly translates into lower re-letting costs and more stable income for landlords.

Infrastructure and Liveability Drivers

Rental demand in Keilor Downs is underpinned by several structural advantages:

• Westfield Watergardens — one of Melbourne’s largest suburban shopping centres, providing employment and retail convenience
• Access to the Western Ring Road and Calder Freeway, making the suburb highly connected for commuters
• A range of primary and secondary schools within easy reach
• Proximity to the St Albans and Keilor Plains train stations on the Sunbury line

These factors support sustained rental demand from families, tradespeople, and essential workers who need affordable, well-located housing in Melbourne’s growth corridor.

What Are the Key Considerations Before Investing in Keilor Downs Property?

Every suburb has its own risk and return profile. Here are the most important factors to weigh before committing capital to Keilor Downs property in 2026.

Capital Growth vs. Yield Trade-Off

The house price data tells a clear story: a 14.8% quarter-on-quarter increase and 9.0% year-on-year growth in median house prices to $889,000 signals that the market has repriced sharply upward. This is excellent news if you already own a house in Keilor Downs. If you are buying now, be aware that the yield on a house purchase is thin at ~2.1% gross. The capital growth thesis may still hold, but you will need a cash flow buffer and a medium-to-long investment horizon.

Units present the inverse story. A 13.0% year-on-year price decline to $534,000 may concern some investors, but for yield-focused buyers it creates an entry point where income return is at its most competitive. CoreLogic data consistently shows that units in outer-Melbourne suburbs tend to consolidate after periods of price correction before recovering in line with broader market cycles.

Vacancy and Rental Market Conditions

SQM Research tracks vacancy rates at the postcode level. Keilor Downs (postcode 3038) has historically maintained tight vacancy conditions consistent with Melbourne’s broader north-west corridor. A vacancy rate below 2.0% is generally considered a landlord’s market — conditions that support rent stability and upward rent reviews at lease renewal.

Negative Gearing and Tax Considerations

According to ATO data, investment properties with a gross yield below approximately 3.5% are often negatively geared — meaning rental income does not fully cover holding costs. For house investors in Keilor Downs at ~2.1% gross yield, negative gearing is almost certain. This is not inherently a problem; the ATO allows losses on rental properties to be offset against other income, reducing your tax liability. However, investors should model their personal cash flow carefully and seek independent tax advice before proceeding.

If you are comparing Keilor Downs to inner-ring alternatives, it is worth reviewing what rental yield in Northcote looks like in 2026 — a suburb with a very different price point and tenant demographic, but useful as a benchmark for understanding Melbourne’s yield spectrum.

Property Type and Configuration Matter

Not all units are equal. A two-bedroom unit near public transport will consistently outperform a one-bedroom unit on a busy arterial road. When evaluating investment properties in Melbourne, look beyond the suburb median and assess individual properties on their specific rent potential, condition, and proximity to amenity. Off-market opportunities can sometimes offer better value than properties priced to the public market.

How Does Collings Real Estate Help Investors in Keilor Downs?

Collings Real Estate is a specialist property agency based at 230 Waterdale Road, Ivanhoe VIC 3079, with deep expertise in Melbourne investment property across the north, north-west, and broader metropolitan market. Our team works with investors at every stage — from identifying the right suburb and property type, through to managing tenancies and maximising long-term portfolio performance.

What Our Property Strategists Do

• Run detailed yield and cash flow modelling for specific properties you are considering in Keilor Downs
• Provide access to off-market and pre-market listings that never reach the public portals
• Advise on optimal property configuration for rental demand in the local tenant market
• Connect you with our property management team to minimise vacancy and maximise net return
• Guide you through the full acquisition process from due diligence to settlement

To explore current opportunities and register your investment criteria, visit our investor portal where you can set up alerts for properties matching your target yield, price range, and suburb preferences.

You can reach our team directly by phone on 03 9486 2000 or by email at info@collings.com.au. We welcome enquiries from first-time investors and seasoned portfolio builders alike.

Frequently Asked Questions About Keilor Downs Rental Yield

What is the gross rental yield for units in Keilor Downs?

Based on a median unit sale price of $534,000 (DataVic/REIV, Apr-Jun 2025 quarter) and a median rent of $360 per week (ABS Census 2021), the gross rental yield for units in Keilor Downs is approximately 3.5%.

Is Keilor Downs a good suburb for property investment?

Keilor Downs offers a stable rental market, strong infrastructure, and a financially established tenant base with a median household income of $1,558 per week (ABS Census 2021). Houses have shown 9.0% year-on-year price growth, while units offer stronger yield at current price levels. It suits investors with a medium-to-long horizon.

What is the median rent in Keilor Downs?

According to ABS Census 2021, the median rent in Keilor Downs is $360 per week. This affordability relative to inner Melbourne is a key driver of tenant demand in the suburb.

How do I calculate net yield on a Keilor Downs investment property?

Start with gross yield (annual rent divided by purchase price, multiplied by 100), then subtract estimated annual costs including property management, council rates, insurance, maintenance, and vacancy allowances. Net yield typically runs 0.5 to 1.0 percentage points below gross yield. A Collings property strategist can model this for a specific property on your behalf.

What is the median house price in Keilor Downs in 2025?

The median house sale price in Keilor Downs was $889,000 in the April-June 2025 quarter, representing a 14.8% increase quarter-on-quarter and a 9.0% rise year-on-year, according to DataVic/REIV data via the Collings CRM dataset.

Investing in Keilor Downs property in 2026 comes down to your priorities. If capital growth is your primary objective, the house market has demonstrated strong momentum. If income yield is the priority, units at current prices offer a more competitive return. Either way, understanding the real numbers — not generalised estimates — is the foundation of a sound investment decision. Talk to a Collings property strategist today by calling 03 9486 2000 or emailing info@collings.com.au to get a tailored analysis for your situation.

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