Rental yield is the annual rental income expressed as a percentage of a property’s purchase price. In 2026, a good gross rental yield in Australia is generally considered to be 4% or above for houses and 5% or above for units. However, what counts as good depends heavily on your strategy.
Rental Yield Benchmarks by Market (2026)
| Market | Gross Yield (Houses) | Gross Yield (Units) |
|---|---|---|
| Melbourne inner-north | 2.8 to 3.5% | 4.2 to 5.1% |
| Melbourne outer ring | 3.5 to 5.4% | 4.5 to 5.8% |
| Sydney inner west | 2.2 to 3.1% | 3.8 to 4.8% |
| Sydney western corridor | 3.8 to 5.2% | 5.1 to 6.5% |
| Brisbane inner | 3.4 to 4.6% | 4.8 to 5.5% |
| Queensland regional (Ipswich, Toowoomba) | 5.4 to 7.2% | 5.8 to 7.4% |
| Perth metro | 4.1 to 5.8% | 5.2 to 6.9% |
Gross Yield vs Net Yield — What Actually Matters
Gross yield ignores costs. Net yield subtracts property management fees (typically 8 to 10%), council rates, insurance, maintenance and vacancy allowances. A property returning 5.5% gross typically delivers 3.8 to 4.2% net after all costs. Always model net yield before purchasing.
What GeeVee Says About Yield Targets in 2026
GeeVee’s investment scoring model weights net yield at 35% of the overall score. The highest-scoring suburbs in 2026 for yield are: Preston VIC (5.1% gross units), Dandenong VIC (5.8 to 6.4% gross), Liverpool NSW (5.8 to 6.5% gross units), Ipswich QLD (5.4 to 6.2% gross) and Rockingham WA (6.1 to 7.2% gross).
Frequently Asked Questions
Is 5% rental yield good in Australia?
Yes. 5% gross yield is considered strong for most Australian metro markets in 2026. It indicates the property is generating meaningful income relative to its price and is easier to hold without topping up from personal income.
Is 3% rental yield too low?
For a pure yield strategy, yes. However, many premium growth suburbs (Toorak, Mosman, Hawthorn) deliver 2 to 3% gross yield with consistent long-term capital appreciation. The trade-off is cash flow vs growth.
How do I calculate rental yield?
Gross yield: (Annual rent divided by purchase price) multiplied by 100. Example: $26,000 annual rent on a $500,000 property equals 5.2% gross yield. Net yield deducts management fees, council rates, insurance and maintenance before dividing.
Where can I find high-yield investment properties off-market?
The Collings portal aggregates off-market and pre-market investment properties across VIC, NSW and QLD including high-yield units and blocks of units not listed on Domain or REA. Sign up free at collings.com.au/portal.
Access High-Yield Investment Properties
Whether you’re buying your first investment property, building a portfolio, or exploring SMSF property investment, the Collings Property Platform gives you access to off-market opportunities, portfolio tracking, investment tools, and property insights powered by GeeVee AI. Join free today and start building your property future. collings.com.au/portal
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