Top 5 Yield Plays Where Rents Are Rising Faster Than Prices

1

Latrobe Valley, VIC

≈150–165 km east of Melbourne; anchored by Morwell and Traralgon.

Traralgon | Airviewonline.com

Signal: Rents +8% YoY vs prices +1.4% (gap +6.6 ppts); inventory 7.22 months (buyers’ market).

Levels: Median asking price $435,000 (from $429,000 a year ago); median asking rent $430/week (from $400/week); gross yield 5.1%.

Affordability & structure: Buy affordability 5.93 years; rent affordability 30%; 41% fully owned; 10-year price change 12.31% p.a.

Read: Cash flow is doing more of the heavy lifting than capital gains at present. With inventory elevated and rents still resetting, yields look comparatively supportive, while entry costs remain manageable for buyers.

2

Cardinia, VIC

≈55–75 km south-east of Melbourne, centred on Pakenham and Koo Wee Rup.

Beaconsfield | Airviewonline.com

Signal: Rents +5% YoY vs prices +0.7% (gap +4.3 ppts); inventory 7.31 months.

Levels: Median asking price $710,000 (from $705,000); median asking rent $580/week (from $550/week); gross yield 4.2%.

Affordability & structure: Buy affordability 6.51 years; rent affordability 28%; 25% fully owned; 10-year price change 3.40% p.a.

Read: A broad growth-corridor profile where young households dominate. Rent momentum is out in front while price growth is muted, keeping yields steady. Elevated stock suggests negotiating power remains with buyers.

3

Casey – South, VIC

≈45–55 km south-east of Melbourne, covering Cranbourne, Clyde and surrounds.

Cranbourne | Airviewonline.com

Signal: Rents +9% YoY vs prices +1.1% (gap +7.9 ppts); inventory 10.84 months (very high).

Levels: Median asking price $743,000 (from $735,000); median asking rent $600/week (from $550/week); gross yield 4.2%.

Affordability & structure: Buy affordability 6.53 years; rent affordability 27%; 19% fully owned; 10-year price change 8.67% p.a.

Read: The sharpest rent–price divergence in the set, underpinned by heavy listings. Price gains look capped near-term; income return is improving. Conditions favour disciplined buyers and investors prioritising cash flow.

4

Wyndham, VIC

≈25–35 km south-west of Melbourne, spanning Werribee, Point Cook and Tarneit.

Werribee | Airviewonline.com

Signal: Rents +5% YoY vs prices 0.0% (gap +5.0 ppts); inventory 8.05 months.

Levels: Median asking price $660,000 (unchanged YoY); median asking rent $525/week (from $500/week); gross yield 4.1%.

Affordability & structure: Buy affordability 5.63 years; rent affordability 23%; 19% fully owned; 10-year price change 8.86% p.a.

Read: A classic “pause” in prices while rents keep stepping up. Strong relative affordability supports household formation, but with stock still high, sellers face a price-discovery market; investors see steady yield tailwinds.

5

Sorell – Dodges Ferry, TAS

≈25–40 km east of Hobart, including Sorell, Midway Point and Dodges Ferry.

By Frances76, CC BY-SA 3.0, https://commons.wikimedia.org/w/index.php?curid=3120216

Signal: Rents +5% YoY vs prices -0.8% (gap +5.8 ppts); inventory 5.62 months (still buyers’ market).

Levels: Median asking price $605,000 (from $610,000); median asking rent $525/week (from $500/week); gross yield 4.5%.

Affordability & structure: Buy affordability 7.38 years; rent affordability 33%; 39% fully owned; 10-year price change 9.21% p.a.

Read: Prices are easing while rents continue to re-rate. With rent affordability tighter and ownership rates higher, turnover may remain modest, keeping conditions favourable for value-seeking buyers.