Top 10 high-yield property investment locations revealed in new report

A new report has revealed Australia’s top 10 property investment locations delivering the highest rental yields, with strong potential for capital growth.

The Pulse report, produced by depreciation specialists Washington Brown in collaboration with Hotspotting, identified 10 suburbs where median property prices are under $600,000 and gross rental yields exceed 6 per cent.

Washington Brown director Tyron Hyde said the findings reflect continuing investor interest in affordable, high-performing markets.

“The Australian property market continues to present lucrative opportunities for investors, particularly in locations offering high rental yields, across both houses and units,” he said.

“Our top 10 selected locations are characterised by strong economic fundamentals, affordable property prices, and high rental demand.”

The report considered factors such as price growth, yields, vacancy rates, infrastructure investment and economic diversity.

Hotspotting director Terry Ryder said these locations were backed by both rental performance and long-term growth drivers.

“By examining key metrics such as median prices, growth rates, rental yields, and vacancy rates, our research provides a comprehensive overview of the most promising areas for property investment,” he said.

The list includes both house and unit markets in Queensland, New South Wales, Western Australia, the Northern Territory and Victoria. Among the top performers were Depot Hill in Rockhampton with an 8.1 per cent rental yield and Leanyer in Darwin with an 8.0 per cent yield.

Hyde said additional benefits for investors included depreciation allowances, with annual tax savings ranging from $2,700 to $6,500 depending on the location and property type.

“For investors in Leanyer, for example, the possible annual taxation benefit could be approximately $5,000,” he said.

Other high-yield suburbs included Spalding in Geraldton, Douglas in Townsville, Carlton in Melbourne, and Moree in regional NSW. Median prices across the top 10 ranged from $260,000 to $417,000.

The Pulse report applies a multi-layered methodology, analysing factors such as economic strength, rental market conditions, infrastructure investment, and population size to identify low-risk, high-potential locations for property investment.