Yields on South East house and land are outperforming the West by 11.2%
Average yield on a 3 bedroom H&L package in the south east is 4.1% vs 3.7% in the west, that is 11.2% higher return. And the median package price in the south east is $118k more expensive.
Comparing the prices of packages on The Move to median rentals per suburb shows South Eastern house and land packages are outperforming their peers in the North and West of Melbourne. The cheaper corridor, the West is actually the weaker income corridor, which is the reverse of what many agents and investors would believe. So cheapest today may turn our to be much more expensive over time.
South-East
4.1%
North
3.9%
West
3.7%
| Gross Rental Yield On Available Stock, By Metro Corridor | Median Asking Price On Available Stock | Median Weekly Rent, 3-Bedroom House | |
|---|---|---|---|
| South-East | 4.1% | $819,713 | $640 |
| North | 3.9% | $730,950 | $550 |
| West | 3.7% | $701,350 | $493 |
Source: live house-and-land package feed against REIV quarterly rent medians
Understand exactly what the change in yield means for your buyers with The Move Property Investment Analysis calculator: https://themove.com.au/pia-calculator
The obvious objection. This is gross yield, not what lands in the client's account after rates and land tax. The rent side is the Real Estate Institute of Victoria's three-bedroom house median for the corridor, which includes older stock, so a new build may let above it and this may differ by corridor.
Current three-bedroom-plus packages in the corridors above.
