Narre Warren North rental yield sits at approximately 1.26% gross for houses as of mid-2026, based on a median weekly rent of $410 and a median house sale price of $1.7 million recorded in the April to June 2025 quarter. That figure is well below Melbourne’s broader rental yield average, which makes Narre Warren North a suburb where capital growth, not cash flow, is the dominant investor story. Read on for the full breakdown.

What Is the Rental Yield in Narre Warren North Right Now?

To calculate gross rental yield, you divide the annual rent by the property value and multiply by 100. Using the figures sourced from DataVic and REIV via Collings’ property dataset, the calculation for Narre Warren North houses looks like this:

• Median weekly rent (ABS Census 2021): $410/week
• Annual rental income: $410 x 52 = $21,320
• Median house sale price (Apr–Jun 2025 Quarter, DataVic/REIV): $1,700,000
• Gross rental yield: $21,320 / $1,700,000 x 100 = 1.26%

Once you account for typical landlord outgoings — property management fees, council rates, insurance, maintenance, and vacancy periods — the net rental yield will fall meaningfully below that gross figure. As a general rule, net yields are roughly 0.5 to 1 percentage point lower than gross yields, placing net yield for houses in Narre Warren North at an estimated 0.3% to 0.8% range.

For land, the picture is different again. The median land price in Narre Warren North reached $1.01 million in the April to June 2025 quarter, up a substantial 16.8% quarter-on-quarter and 17.4% year-on-year (DataVic/REIV via Collings CRM). Land itself generates no rental income, so investors acquiring vacant land here are making a pure capital growth play.

How Does Narre Warren North Compare to Broader Melbourne Yields?

For context, SQM Research and CoreLogic data consistently show Melbourne-wide gross rental yields for houses averaging between 2.5% and 3.5% in 2025 and into 2026. Narre Warren North’s 1.26% gross yield sits well below that range. If rental cash flow is your primary objective, suburbs with lower median prices and strong renter demand will outperform. You can explore a broader comparison in our guide to high rental yield suburbs in Melbourne for 2026.

What Do the Numbers Say About the Narre Warren North Property Market?

The headline figure from DataVic and REIV (via Collings’ property dataset) tells a compelling capital growth story. The median house price of $1.7 million in the April to June 2025 quarter represents a 21.4% year-on-year increase and a 0.4% quarter-on-quarter rise. That kind of annual appreciation is rare across Melbourne and points to significant underlying demand for established homes in this tightly held suburb.

The suburb’s demographic profile reinforces why prices are where they are. According to ABS Census 2021 data, Narre Warren North has:

• Population: 8,033 residents
• Median age: 42.0 years (indicating an established, family-oriented community)
• Median household income: $2,634 per week (significantly above Melbourne’s median)
• Median rent: $410 per week

A median household income of $2,634 per week means residents here earn well above the Victorian average. High-income owner-occupiers dominate the suburb, which explains both the premium property prices and the relatively modest renter population. Where owner-occupiers are the majority, rental demand is structurally lower, and that keeps yields compressed even as prices climb.

What Has Been Driving Price Growth in Narre Warren North?

Several factors have contributed to the 21.4% year-on-year house price growth recorded through to June 2025:

1. Land scarcity: Narre Warren North is largely characterised by large-lot residential land, and supply of new dwellings is inherently constrained. The median land price surging 16.8% in a single quarter reflects how scarce serviced lots have become.
2. Amenity and lifestyle appeal: The suburb’s semi-rural character, proximity to Cardinia Road Precinct employment nodes, and strong school catchments attract families with the means to pay premium prices.
3. Infrastructure investment in Melbourne’s south-east: Major road upgrades and public transport improvements in the broader Casey local government area have lifted accessibility and, with it, buyer appetite.
4. Interstate and upgrader demand: RBA data indicates that low-rate financing conditions in prior years drove a wave of upgrader activity in Melbourne’s outer-ring premium suburbs, a trend that has continued to support prices even as rates normalised.

What Are the Key Considerations for Investing in Narre Warren North?

Investing in Narre Warren North requires an honest assessment of your investment strategy. The suburb is not a yield play. It is a capital growth suburb, and investors who enter with that understanding are better positioned for long-term success.

Is Negative Gearing a Factor for Investors Here?

At a gross yield of 1.26%, virtually every investment property purchased in Narre Warren North at current prices will be negatively geared from day one. The ATO reports that negative gearing remains a widely used strategy among Australian property investors, allowing rental losses to be offset against other taxable income. For high-income earners (which Narre Warren North’s demographic profile suggests many investors will be), negative gearing can meaningfully reduce the after-tax holding cost of the property. However, investors must have the financial capacity to sustain cash flow shortfalls over the medium to long term.

What Are the Risks Specific to This Suburb?

• Yield compression risk: If interest rates remain elevated, the gap between rental income and mortgage costs widens, increasing the out-of-pocket holding expense.
• Liquidity: At a median price of $1.7 million, the buyer pool at resale is narrower than for mid-range suburbs, meaning time on market can be longer.
• Rental demand depth: With a predominantly owner-occupier population, vacancy periods may be longer than in higher-density, inner-ring suburbs.
• Land tax exposure: At these price points, Victorian land tax thresholds become relevant and should be factored into holding cost calculations.

For investors who want strong yield alongside capital growth, comparing Narre Warren North against other Melbourne suburbs is a useful exercise. Our overview of investment properties in Melbourne, including high-yield units and townhouses, provides a broader framework for making that comparison.

What Property Types Make Sense in Narre Warren North?

Given the suburb’s character, the dominant investment vehicle is the detached family home on a large block. Units and townhouses are relatively uncommon here. If your strategy requires a lower entry price and higher yield, the surrounding Casey LGA suburbs, or inner-Melbourne unit markets, may offer better yield metrics while still delivering solid growth prospects. Investors exploring unit block opportunities across Melbourne can find relevant listings through our off-market investment properties portal, which surfaces deals not publicly listed.

How Does Collings Real Estate Help Investors in Narre Warren North?

Collings Real Estate is a Melbourne investment property specialist with deep experience across both inner-city and outer-ring markets. While our office is based at 230 Waterdale Road, Ivanhoe, VIC 3079, our property strategists work with investors across metropolitan Melbourne, including the south-east corridor that encompasses Narre Warren North.

For investors weighing up Narre Warren North against other suburbs, our team can provide:

• Suburb-level yield and growth benchmarking using current DataVic, REIV, and CoreLogic data
• Portfolio structuring advice that accounts for negative gearing, land tax, and depreciation schedules
• Access to off-market properties that do not appear on public listing platforms
• Property management services to ensure rental income is maximised and vacancy minimised
• Independent analysis of how Narre Warren North fits within a broader Melbourne investment portfolio

To speak with a Collings property strategist, call 03 9486 2000 or email info@collings.com.au. You can also register for early access to off-market listings through our investor portal.

Frequently Asked Questions About Narre Warren North Rental Yield

What is the gross rental yield in Narre Warren North?

Based on a median weekly rent of $410 (ABS Census 2021) and a median house price of $1.7 million (DataVic/REIV, April to June 2025 Quarter), the gross rental yield in Narre Warren North is approximately 1.26%.

Is Narre Warren North a good suburb for rental income?

Narre Warren North is not a high-yield suburb by Melbourne standards. Its strength lies in capital growth, with median house prices rising 21.4% year-on-year to June 2025. Investors seeking yield above 3% should look to higher-density suburbs with stronger renter populations.

What is the median house price in Narre Warren North?

The median house sale price in Narre Warren North was $1,700,000 in the April to June 2025 quarter, representing a 21.4% year-on-year increase, according to DataVic and REIV data sourced via Collings’ property dataset.

What is the median rent in Narre Warren North?

According to ABS Census 2021 data, the median rent in Narre Warren North is $410 per week. This figure reflects the suburb’s predominantly owner-occupier character and the relatively smaller renter pool compared to inner Melbourne.

What type of investor suits Narre Warren North?

Narre Warren North suits investors with a long-term capital growth focus, a high income that benefits from negative gearing offset, and the financial capacity to sustain a cash flow shortfall during the holding period. It is not suited to investors whose primary goal is immediate positive cash flow.

Whether Narre Warren North belongs in your portfolio depends on your personal investment timeline, income, and strategy. The suburb’s 21.4% annual price growth is exceptional, but that growth comes with compressed yields and elevated entry costs. A Collings property strategist can help you map the numbers against your specific situation. Call 03 9486 2000 or email info@collings.com.au to get started.