Rental returns on apartments in Australia are low to moderate

Residential Valuation Specialist | November 16, 2022

Last Updated: Oct. 07, 2022
MELBOURNE - Apartments COST ($) YIELD (p.a.)
TO BUY MONTHLY RENT
Melbourne City - Greater Region
Studio $259,000 $1,387 6.42%
1-Bedroom $389,000 $1,863 5.75%
2-Bedroom $630,000 $2,604 4.96%
3-Bedroom $1,395,000 $4,117 3.54%
4+Bedroom $3,200,000 $6,500 2.44%
Inner East Melbourne
Studio $229,500 $1,107 5.79%
1-Bedroom $393,500 $1,582 4.82%
2-Bedroom $630,000 $2,803 3.97%
3-Bedroom $1,345,000 $2,687 2.40%
4+Bedroom $3,200,000 $3,250 1.22%
South-East Melbourne
1-Bedroom $255,000 $1,296 6.10%
2-Bedroom $430,000 $1,603 4.47%
3-Bedroom $575,000 $1,820 3.80%
South-East Melbourne
1-Bedroom $370,000 $1,172 3.80%
2-Bedroom $480,000 $1,736 4.34%
3-Bedroom $665,000 $1,863 3.36%
Eastern Melbourne
1-Bedroom $360,000 $1,606 5.35%
2-Bedroom $525,000 $1,736 3.97%
3-Bedroom $775,000 $2,062 3.19%
Melbourne avg. Rental Yields 4.19%
BRISBANE - Apartments COST ($) YIELD (p.a.)
TO BUY MONTHLY RENT
Inner City Region
Studio $208,000 $1,541 8.89%
1-Bedroom $389,000 $1,950 6.02%
2-Bedroom $620,000 $2,730 5.28%
3-Bedroom $1,460,000 $4,117 3.38%
4+Bedroom $2,487,500 $5,200 2.51%
Northern Region
1-Bedroom $375,000 $1,505 4.82%
2-Bedroom $485,000 $1,978 4.89%
3-Bedroom $675,000 $2,719 4.83%
Southern Region
1-Bedroom $349,000 $1,430 4.92%
2-Bedroom $440,000 $1,972 5.38%
3-Bedroom $504,500 $2,210 5.26%
4+Bedroom $1,400,000 $2,600 2.23%
Western Region
Studio $322,500 $1,213 4.51%
1-Bedroom $337,000 $1,354 4.82%
2-Bedroom $497,000 $2,058 4.97%
3-Bedroom $799,000 $2,210 3.32%
4+Bedroom $2,622,500 $2,557 1.17%
Brisbane avg. Rental Yields 4.54%
PERTH - Apartments COST ($) YIELD (p.a.)
TO BUY MONTHLY RENT
City Center
Studio $350,000 $1,647 5.65%
1-Bedroom $334,000 $1,820 6.54%
2-Bedroom $520,000 $2,383 5.50%
3-Bedroom $925,000 $3,683 4.78%
4+Bedroom $2,970,000 $5,850 2.36%
Perth (all locations)
Studio $345,000 $1,343 4.67%
1-Bedroom $315,000 $1,712 6.52%
2-Bedroom $449,000 $2,058 5.50%
3-Bedroom $595,000 $3,077 6.21%
4+Bedroom $2,200,000 $5,092 2.78%
Perth avg. Rental Yields 5.05%
SYDNEY - Apartments COST ($) YIELD (p.a.)
TO BUY MONTHLY RENT
Western Sydney
Studio $400,000 $1,473 4.42%
1-Bedroom $479,000 $1,647 4.13%
2-Bedroom $513,000 $1,820 4.26%
3-Bedroom $650,000 $1,993 3.68%
Sydney
1-Bedroom $574,000 $2,167 4.53%
2-Bedroom $680,000 $2,817 4.97%
3-Bedroom $865,000 $3,120 4.33%
NSW 2000
Studio $404,000 $1,712 5.09%
1-Bedroom $650,000 $2,448 4.52%
2-Bedroom $1,100,000 $3,467 4.78%
3-Bedroom $1,580,000 $4,117 3.13%
4+Bedroom $3,775,000 $10,833 3.44%
Sydney CBD
Studio $750,000 $2,678 4.30%
1-Bedroom $875,000 $3,120 4.28%
2-Bedroom $1,575,000 $4,767 3.63%
3-Bedroom $3,300,000 $8,667 3.15%
Sydney avg. Rental Yields 4.10%
ADELAIDE - Apartments COST ($) YIELD (p.a.)
TO BUY MONTHLY RENT
City Center
1-Bedroom $390,000 $1,972 6.07%
2-Bedroom $602,500 $3,250 6.47%
3-Bedroom $1,300,000 $2,817 2.60%
Adelaide (all locations)
Studio $75,500 $1,300 20.66%
1-Bedroom $285,000 $1,430 6.02%
2-Bedroom $420,000 $1,733 4.95%
3-Bedroom $695,000 $2,817 4.86%
Adelaide avg. Rental Yields 7.38%
DARWIN - Apartments COST ($) YIELD (p.a.)
TO BUY MONTHLY RENT
City Center
1-Bedroom $420,000 $2,080 5.94%
2-Bedroom $650,000 $3,033 5.60%
3-Bedroom $749,000 $3,683 5.40%
Darwin (all locations)
Studio $217,500 $1,276 7.04%
1-Bedroom $270,000 $1,820 8.09%
2-Bedroom $395,000 $2,145 6.52%
3-Bedroom $499,000 $2,817 6.77%
4+Bedroom $1,074,500 $2,817 3.15%
Darwin avg. Rental Yields 6.13%
GOLD COAST - Apartments COST ($) YIELD (p.a.)
TO BUY MONTHLY RENT
Gold Coast (all locations)
Studio $320,000 $1,777 6.66%
1-Bedroom $449,500 $1,950 5.21%
2-Bedroom $659,000 $2,687 4.89%
3-Bedroom $1,139,000 $3,683 3.88%
4+Bedroom $3,712,500 $7,692 2.49%
Gold Coast avg. Rental Yields 4.63%
CANBERRA - Apartments COST ($) YIELD (p.a.)
TO BUY MONTHLY RENT
Canberra (all locations)
Studio $245,000 $1,582 7.75%
1-Bedroom $418,750 $2,037 5.84%
2-Bedroom $579,900 $2,492 5.16%
3-Bedroom $833,900 $3,142 4.52%
Canberra avg. Rental Yields 5.82%
All yields are gross - i.e., before taxes, repair costs, ground rents, estate agents fees, and any other costs. Net yields (what you´ll really earn) are typically around 1.5% to 2% lower.
Source: Global Property Guide Definitions: Data FAQ See also: Update Schedule

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As we would expect, there are huge differences in the cost of apartments in Sydney depending on the area. What doesn´t differ much are the relatively low gross rental yields on Sydney properties (the rental yield is the percent return on the purchase cost of a property). Sydney´s average rental yield is 4.10% with it ranging between 3.13% to 5.09%.

It is rare in Sydney to be able to earn more than 4.5%, and most apartments return less. Bear in mind that usually, costs of various kinds will absorb at least 2% of those returns, so net returns will be a lot lower than the gross figures.

Other Australian cities and areas have slightly better returns.

  • Melbourne apartments have a rental yield of 1.22% to 6.42% with a city average of 4.19%.
  • Brisbane apartments earn a rental yield between 1.17% and 8.89% with an average of 4.54%
  • Perth apartments yield between 2.36% to 6.54% with an average of 5.05%.
  • Adelaide apartments can yield you between 2.60% to 20.66% with an average of 7.38%.
  • Darwin apartments yield stay between 3.15% to 8.09% with an average of 6.13%.
  • Canberra apartments earn a yield between 4.52% to 7.75% with an average of 5.82%.
  • Gold Coast apartments have a yield between 2.49% to 6.66% with an average of 4.63%.

Round trip transaction costs can be high for foreigners buying residential property in Russia. See our Australia transaction cost analysis and our Australia property transaction costs compared to other countries.