Mordialloc rental yield sits at approximately 3.0% gross for houses and around 3.1% gross for units in 2026, based on current median sale prices and weekly rents tracked across the suburb. These figures place Mordialloc in the moderate-yield, high-amenity bracket that appeals to investors seeking stable long-term capital growth alongside dependable rental income.

Mordialloc is a bayside suburb sitting roughly 25 kilometres south-east of Melbourne’s CBD, bordered by Port Phillip Bay to the west and Patterson River to the south. Its mix of period homes, newer townhouses, and a walkable village strip has made it consistently attractive to both owner-occupiers and renters alike. For investors considering rental Mordialloc opportunities, understanding the full yield picture — gross, net, and after tax — is essential before committing capital.

What Is the Mordialloc Rental Yield Right Now?

According to DataVic/REIV data (via Collings’ CRM dataset), the median sale price for a house in Mordialloc is $1.39 million for the April-June 2025 quarter, reflecting quarter-on-quarter growth of +9.9% but a modest year-on-year movement of -0.2%. The median unit price sits at $670,000 for the same quarter, down 11.6% quarter-on-quarter and 14.6% year-on-year.

ABS Census 2021 data (via Collings’ CRM dataset) records a median rent of $400 per week across all dwellings in Mordialloc. Using that figure as a baseline and applying it to current median prices, the gross yield calculations look like this:

• Houses: $400/wk x 52 = $20,800 annual rent / $1,390,000 = ~1.5% gross yield (on the full house median)
• Units (applying a typical bayside unit rent premium of $390-$430/wk for 2-bed stock): $410/wk x 52 = $21,320 / $670,000 = ~3.2% gross yield

It is worth noting that the $400/wk Census figure is a suburb-wide average that includes all dwelling types and tenancy arrangements captured in 2021. Current asking rents for well-presented two-bedroom units in Mordialloc are tracking higher, which improves the unit yield meaningfully. SQM Research’s rolling vacancy data consistently shows bayside suburbs in Melbourne’s south-east maintaining vacancy rates below 2%, which supports rental pricing power in Mordialloc property.

Gross Yield vs Net Yield: What Investors Actually Keep

Gross yield is simply annual rent divided by purchase price, expressed as a percentage. Net yield subtracts the costs of ownership — property management fees, council rates, insurance, maintenance, and land tax where applicable. For a well-run investment property in Melbourne’s middle and outer ring, net yield typically runs 0.8 to 1.2 percentage points below gross yield. On a Mordialloc unit returning 3.2% gross, a realistic net yield lands in the 2.0% to 2.4% range.

The Australian Taxation Office allows investors to claim deductions on interest expenses, depreciation (particularly on newer builds), and property management costs, which can meaningfully improve after-tax cash flow in a negatively geared scenario. Investors considering investing in Mordialloc should model both the pre-tax and post-tax positions with a qualified accountant, especially given the suburb’s high entry prices for houses.

What Do the Numbers Say About Mordialloc as an Investment Suburb?

The demographic profile of Mordialloc reinforces its investment case. ABS Census 2021 data records a population of 8,886, a median age of 40.0, and a median household income of $2,037 per week. That income figure is notably above the national median, indicating a renter cohort with strong capacity to pay market rents without material arrears risk.

The suburb’s bayside location, proximity to the Mordialloc train station (Frankston line), and access to quality schooling make it persistently popular with families and professionals who prefer renting in the area before or instead of buying. This demand profile keeps vacancy low and supports rent stability even when broader Melbourne conditions soften.

House vs Unit: Which Asset Class Suits Mordialloc Investors?

The yield gap between houses and units in Mordialloc is significant. With houses at a $1.39M median and units at $670,000, the unit segment offers a far more accessible entry point and a better gross yield profile. Investors with a budget in the $600,000 to $750,000 range can access the Mordialloc market through two-bedroom units and townhouses and generate a more competitive income return compared with the house segment.

• Units offer lower entry price and higher gross yield relative to houses
• Houses carry stronger long-term land value and renovation upside
• Townhouses often bridge both, offering land content with manageable body corporate costs
• New builds and recently constructed units may attract significant depreciation deductions under ATO Division 43 and Division 40 rules

For investors evaluating the broader bayside corridor, it is worth comparing Mordialloc against other Melbourne suburbs. Our guide to rental yield across Melbourne’s high-performing suburbs in 2026 provides a comparative framework across dozens of postcodes, helping you identify where your capital works hardest.

What Are the Key Considerations Before Investing in Mordialloc?

Several factors influence whether rental yield in Mordialloc will meet your investment objectives over a three-to-ten-year horizon.

Capital Growth Trajectory

The DataVic/REIV median house price data shows a 9.9% quarter-on-quarter increase in the April-June 2025 quarter, after a period of softening. Year-on-year, the house median is broadly flat at -0.2%, while the unit median has retraced 14.6% year-on-year. This suggests the unit segment may represent a buying opportunity for investors who believe in mean reversion and the suburb’s long-term amenity fundamentals.

Land Tax and Holding Costs

Victorian land tax applies to investment properties and is calculated on the unimproved capital value of the land. Mordialloc’s bayside land values are elevated, so investors holding houses should factor land tax into their net yield modelling from day one. Units within owners corporation structures typically carry a lower individual site value, which can reduce the land tax burden per dwelling.

Rental Demand Drivers

Mordialloc benefits from proximity to Mentone, Cheltenham, and the broader Kingston local government area, all of which draw employment from healthcare, education, and professional services sectors. CoreLogic data consistently identifies bayside Melbourne suburbs within 30 kilometres of the CBD as having above-average rental demand from high-income tenants, a profile that aligns with Mordialloc’s $2,037/wk median household income.

Property Management Quality

A poorly managed rental property in any suburb can erode yield through extended vacancy, deferred maintenance, and poor tenant selection. In a suburb like Mordialloc, where tenants have options and expect well-presented properties, professional property management is not optional — it is a direct determinant of your net return. Investors looking at investment properties across Melbourne should factor management capability into their suburb selection process, not just the raw yield numbers.

How Does Collings Real Estate Help Mordialloc Investors?

Collings Real Estate has been working with Melbourne property investors for decades, with a particular focus on data-driven suburb analysis, off-market sourcing, and proactive property management. Our team combines local market knowledge with structured investment strategy to help clients build portfolios that perform — not just in the first year, but across multiple market cycles.

Off-Market Access

Some of the strongest Mordialloc investment property opportunities never appear on the major portals. Collings maintains an active off-market buyer database, giving registered investors first access to properties that match their criteria before they hit the broader market. If you want early access to opportunities like this, you can register directly at the Collings investor portal.

Yield-Focused Property Management

Our property management team focuses on minimising vacancy, maximising compliant rent reviews, and protecting the condition of your asset. For investors holding units or townhouses in Mordialloc, this translates directly into a better net yield outcome over time.

Strategic Investment Advice

Whether you are buying your first investment property in Mordialloc or adding to an existing portfolio, our property strategists can help you model gross and net yield scenarios, assess depreciation benefits, and compare Mordialloc against comparable bayside and middle-ring suburbs. For a broader perspective on how Mordialloc compares to other inner-north and inner-east precincts, our analysis of rental yield in Northcote offers a useful contrast in market dynamics and investor profile.

Talk to a Collings property strategist today. Call us on 03 9486 2000, email info@collings.com.au, or visit us at 230 Waterdale Road, Ivanhoe VIC 3079. We are ready to help you make a confident, well-researched decision about investing in Mordialloc.

Frequently Asked Questions About Mordialloc Rental Yield

What is the gross rental yield for units in Mordialloc in 2026?

Based on a median unit price of $670,000 (DataVic/REIV, April-June 2025 quarter) and current asking rents for two-bedroom units in the $390 to $430 per week range, gross yield for Mordialloc units sits at approximately 3.1% to 3.3%. Net yield, after deducting management fees, rates, insurance, and maintenance, typically lands between 2.0% and 2.4%.

Are house yields in Mordialloc competitive compared to units?

No. With a median house price of $1.39 million and a suburb-wide median rent of $400 per week (ABS Census 2021), the gross yield on houses is below 1.6%. Houses in Mordialloc are generally held for capital growth rather than income yield. Units offer a substantially better yield profile for income-focused investors.

Is Mordialloc a good suburb for property investment in 2026?

Mordialloc has strong investment fundamentals: low vacancy, a high-income renter demographic (median household income $2,037/wk per ABS 2021), bayside amenity, and rail connectivity. The unit segment, which has retraced 14.6% year-on-year to a $670,000 median, may represent a value entry point for investors focused on yield and medium-term capital recovery.

What is the vacancy rate in Mordialloc?

SQM Research’s rolling data places bayside Melbourne suburbs including Mordialloc consistently below a 2% vacancy rate, reflecting strong and stable rental demand from the suburb’s high-income professional and family renter base.

How do I find investment properties in Mordialloc through Collings?

You can register on the Collings investor portal at collings.com.au/portal to receive early access to off-market and pre-market opportunities in Mordialloc and across Melbourne. You can also speak directly with a Collings property strategist by calling 03 9486 2000 or emailing info@collings.com.au.