Where are Investors Making the Most Money on Property in Australia?

Where are Investors Making the Most Money on Property in Australia?

  • By Optbetter
  • Monday, 6th Sep 2021
  • Finance

Are you a real estate investor in Australia looking for some insights into Australia’s most rewarding Property Markets? Then, here’s something that you’ll find helpful.

Darwin is the Pick of the Trade!

The real estate investment market of Australia has been reaping fruits across the country for investors. Darwin, in particular, has broken all records. The Top End Units have been yielding a whopping 7.4 per cent yield to their owners, the highest ever for any capital city across the nation, even for homes. The profit is up an incredible 16.1 per cent from this time during the previous year. Darwin has been attracting people who consider it safe through the pandemic and who’ve been relocating there, especially with being able to work remotely.

Sydney and Melbourne Struggled

A lot of other cities performed well, except for Sydney and Melbourne. While Sydney generated 2.9 per cent of profits for houses, and 3.55 per cent for units, Melbourne, with 3.09 per cent for homes and 3.95 per cent for units, was a bit higher, although not fruitful enough compared to other cities. That’s because of the rapid increase in the rent prices in both these cities, with Sydney home prices soaring to a median as high as $1,309,195 over the first three months of the year, and Melbourne with a median expected to reach $1 million!

Other Cities that Performed Well

Perth was another standout. It yielded 5.11 per cent in June 2021, up 9.6 per cent over the year. Three other top cities experienced a slight downfall compared to last year. However, their returns proved remarkable. They were Hobart, Brisbane and Canberra. So, Hobart was 4.6 per cent, Brisbane clocked 4.6 per cent, and on the other hand, Canberra helped investors draw 4.14 per cent, which was record low for the country’s capital. Adelaide also put up a good show by being slightly up from 2020 at 4.53 per cent.

Concerning units, Canberra proved the second-best yield at 6.05 per cent, up 1.1 per cent in 2020. On the other hand, Perth provided 5.76 per cent (up a massive 11.3 per cent), and Adelaide was 5.48 per cent (up 3.3 per cent). Other cities in the list included Brisbane at 5.23 per cent (up 0.8 per cent) and Hobart 4.62 per cent, up 4.6 per cent.

Darren Hunt, Elders Real Estate Darwin, talked about the city’s excellent returns, expected by agents. The city is the cheapest capital in the country and has had a few COVID lockdowns. He also informed that people could work here remotely and enjoy the wonderful weather, alongside mentioning the city’s easy accessibility to Asia and being cheaper than Melbourne and Sydney.


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