Investors flock to regional Vic for highest rental returns

Date: 26 May 17

Regional Victoria is delivering dividends for investors with every property type in regional Victoria recording a higher rental return than metropolitan Melbourne. 

New data from the REIV shows two and three-bedroom homes in regional Victoria were some of the best performing for investors with rental returns of 5.3 and 4.9 per cent respectively.

In comparison, the same property types in Melbourne delivered returns of 2.7 and three per cent respectively. 

In the year to March, two-bedroom homes in Sale produced a rental return of seven per cent while three-bedroom homes in the Gippsland towns of Moe, Morwell and Bairnsdale recorded yields of more than 6.5 per cent over the same period. 

REIV President Joseph Walton said regional Victoria is increasingly attractive for investors, offering high returns for a range of property types. 

“While capital growth in regional Victoria has been more moderate, country Victoria offers investors some of the state’s highest rental returns.  

“Regional Victoria provides real value for money with affordable entry points to the market and high rental returns, allowing investors to service their loan.

“Property is a long-term investment with improved infrastructure and amenities across the state likely to drive house price growth in the coming years.