Darwin - best place in Australia for rental yield
House price changes have been choppy in Darwin and overall , prices now remain the same as where they were in March 2022 after peaking in June . Despite this , rental growth continues . Rents for houses are now at their highest level ever recorded , whereas unit rents are slowly heading back to their October 2014 peak . This is good news for rental yields .
Darwin is now one of the few places in Australia where rental yields are still well up on most mortgage rates , even with rising interest rates . For houses , the yield is currently 5.73 per cent and for units , it ’ s 7.07 per cent . You may struggle to get strong capital growth short-term in much of Australia right now , but in Darwin you ’ ll get enough to pay off your mortgage plus a bit leftover . If rental growth continues , this yield is likely to continue to improve over the next 12 months .
At a suburb level , there ’ s nowhere in Darwin currently seeing declines in rents . Larrakeyah , Howard Springs and Marrara are seeing the biggest increases in rents . In Fannie Bay , however , rents have remained stable over the past 12 months .
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