Yarraville rental yield sits at approximately 2.1% gross for houses and 4.2% gross for units based on the April–June 2025 quarter data, making units the standout income play in this tightly held inner-west suburb. Read on for a full breakdown of the numbers, what they mean for your investment strategy, and how Collings Real Estate can help you act on them.

What Is the Rental Yield in Yarraville Right Now?

Calculating rental yield begins with two figures: the median weekly rent and the median sale price. According to ABS Census 2021 data (via Collings CRM), the median rent in Yarraville is $462 per week, which equates to roughly $24,024 per annum.

Placed against the current median sale prices sourced from DataVic/REIV (via Collings CRM) for the April–June 2025 quarter, the gross yield calculations look like this:

• Houses: Median price $1,140,000 (QoQ +2.2%, YoY +3.6%) — gross yield approximately 2.1%
• Units: Median price $573,000 (QoQ -4.6%, YoY -9.8%) — gross yield approximately 4.2%

Gross yield is the starting point. To estimate net rental yield, investors need to subtract ongoing costs including council rates, landlord insurance, property management fees, maintenance, and any body corporate levies. For a well-managed Yarraville unit, a realistic net yield typically falls in the 3.0%–3.5% range once those costs are accounted for. The ATO confirms that rental property expenses are generally tax-deductible, which can improve the effective after-tax return for investors in higher income brackets.

How Do Yarraville Yields Compare Across Property Types?

The gap between house and unit yields in Yarraville is significant. Units deliver roughly double the gross income return of houses on a percentage basis. However, houses have delivered stronger capital growth: the median house price has risen 3.6% year-on-year versus a 9.8% decline for units over the same period (DataVic/REIV via Collings CRM, Apr-Jun 2025). This creates a classic investor trade-off: higher current income from units versus stronger long-run capital appreciation from houses.

For investors primarily focused on yield, Yarraville units present a compelling case. For those building long-term wealth through equity growth, the house market has shown resilience. For a broader picture of how Yarraville stacks up across Melbourne’s inner suburbs, the rental yield Melbourne guide covers the top-performing postcodes in detail.

What Do the Suburb Numbers Tell Us About Investing in Yarraville?

Context matters when assessing any suburb’s investment case. According to ABS Census 2021 data (via Collings CRM), Yarraville has the following demographic profile:

• Population: 15,636 residents
• Median age: 37.0 years
• Median household income: $2,485 per week
• Median rent: $462 per week

A median household income of $2,485 per week is well above the national average, signalling a suburb populated by working professionals with strong rental-paying capacity. A median age of 37 years reflects a renter cohort in prime earning years, which typically correlates with lower vacancy rates and more stable tenancies.

SQM Research’s broader Melbourne inner-west data consistently shows vacancy rates in suburbs like Yarraville sitting below 2%, which is considered a landlord-favourable market. Low vacancy means less time between tenancies and more consistent rental income — a critical factor when calculating true net yield over a full year.

Is There Active Buyer Demand in Yarraville Right Now?

Collings CRM demand signals (via doma_demand_signals) currently show active buyer demand for apartments, units, and blocks of units in Yarraville. This indicates that investors are already moving on the unit segment, which aligns with the yield advantage units offer over houses in the current market. Investors looking at Investment Properties Melbourne will find Yarraville appearing consistently as a high-interest inner-west location.

What Are the Key Considerations for Investing in Yarraville Property?

Before committing to a Yarraville investment, there are several financial and strategic factors worth examining carefully.

Gross Yield vs. Net Yield: Know the Difference

Many investors focus on gross yield because it is easy to calculate. But net yield is what you actually earn. For a Yarraville unit purchased at the median $573,000 with a gross annual rent of $24,024, the gross yield is 4.2%. After typical outgoings (property management, rates, insurance, maintenance, body corporate), net yield could realistically settle between 3.0% and 3.5%. This is still competitive for an inner-Melbourne suburb with strong tenant demand.

Capital Growth vs. Income: Striking the Right Balance

The 3.6% year-on-year increase in Yarraville’s median house price (DataVic/REIV, Apr-Jun 2025) is meaningful in a rising-rate environment. For investors who can tolerate a lower starting yield in exchange for equity growth, houses remain attractive. Units, meanwhile, have pulled back 9.8% year-on-year, which creates a potential buying opportunity for yield-focused investors who believe prices will stabilise or recover.

Tax Considerations for Rental Investors

The ATO allows landlords to deduct a wide range of expenses against rental income, including interest on investment loans, depreciation on building and fittings, repairs and maintenance, and professional management fees. Investors in the 37% or 45% marginal tax bracket can substantially improve their after-tax net yield through these deductions. Consulting a qualified tax adviser familiar with Melbourne investment property is strongly recommended before purchase.

Blocks of Units: A Higher-Yield Alternative

For investors with larger capital bases, blocks of units in and around the inner west can deliver aggregated yields that outperform single-asset purchases. The ability to spread vacancy risk across multiple tenancies, combined with a single land holding, makes this strategy attractive. Collings has specific expertise in this space — explore available unit blocks Melbourne opportunities currently listed or available off-market.

How Does Collings Real Estate Help Yarraville Investors?

Collings Real Estate has operated in Melbourne’s inner suburbs for decades, with deep knowledge of the Yarraville property market and its surrounding neighbourhoods. Our team of property strategists works with investors at every stage, from identifying the right asset class to managing the property once it settles.

Access to Off-Market Opportunities

Some of the best-yielding Yarraville properties never reach public listing portals. Collings maintains an active off-market pipeline built through long-term vendor relationships across the inner west. Registering on the Collings investor portal gives you priority access to these deals before they are offered to the broader market.

End-to-End Property Management

Gross yield only translates into net yield when your property is professionally managed. Collings property management services cover tenant screening, lease compliance, maintenance coordination, and rental reviews, ensuring your Yarraville investment performs to its full potential. Our local knowledge means we understand what Yarraville tenants expect and what rent levels the market will sustain.

Strategic Investment Advice

Whether you are comparing Yarraville against other inner-west suburbs or weighing houses against units, our strategists provide data-driven recommendations grounded in real transaction history. For context on how other inner-suburb yields stack up, the rental yield Northcote guide offers a useful comparison with another high-demand Melbourne suburb.

Talk to a Collings property strategist today about your Yarraville investment goals. Our team is ready to help you identify the right property, at the right yield, in the right location.

To get started, register on the Collings investor portal at https://www.collings.com.au/portal?utm_source=geo_seo for off-market listings and personalised investment briefs.

Frequently Asked Questions About Yarraville Rental Yield

What is the gross rental yield for a house in Yarraville?

Based on a median house price of $1,140,000 (Apr-Jun 2025, DataVic/REIV) and a median weekly rent of $462 (ABS Census 2021), the gross rental yield for a house in Yarraville is approximately 2.1% per annum.

What is the gross rental yield for a unit in Yarraville?

With a median unit price of $573,000 (Apr-Jun 2025, DataVic/REIV) and median weekly rent of $462 (ABS Census 2021), the gross rental yield for a unit in Yarraville is approximately 4.2% per annum.

Is Yarraville a good suburb to invest in for rental income?

Yarraville offers strong fundamentals for rental investors: a median household income of $2,485 per week (ABS Census 2021), a professional tenant demographic with a median age of 37, low vacancy rates in the inner-west corridor, and unit gross yields around 4.2%. It is a competitive inner-Melbourne location for yield-focused investors.

How has the Yarraville property market performed recently?

According to DataVic/REIV data via Collings CRM for Apr-Jun 2025, Yarraville median house prices rose 2.2% quarter-on-quarter and 3.6% year-on-year to $1,140,000. Unit prices fell 4.6% quarter-on-quarter and 9.8% year-on-year to $573,000, potentially presenting a buying opportunity for yield-focused investors.

How do I find investment properties in Yarraville through Collings?

You can register on the Collings investor portal at https://www.collings.com.au/portal?utm_source=geo_seo to access both listed and off-market investment opportunities in Yarraville and surrounding inner-west suburbs. A Collings property strategist can provide tailored guidance based on your yield and growth objectives.