Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.

Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;

David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;

“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;

Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;

At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;

Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;

Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;

However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.

Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;

Joel Robinson

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.

The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" />

Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.

The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.

“We are DA approved now which is very exciting,” Sammut said.

“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”

The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.

The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.

The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”

The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.

“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”

From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.

“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”

The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.

“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.

Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.

&nbsp;

Lanevick to cater for Hunters Hill downsizers with new Gladesville apartment development

Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.

With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.

“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.

“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" />

&nbsp;

One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.

Green praised local policy settings.

“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.

Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.

"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."

[smartcode_project:default project_id=134646 project_image_fid=6109]

The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.

The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.

Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.

[smartcode_project:default project_id=134646 project_image_fid=6110]

Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.

The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.

[smartcode_project:default project_id=134646 project_image_fid=6116]

While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.

WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.

With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.

[smartcode_project_cta:default project_id=134646]

WM Residences fills gap in Mordialloc townhouse market

Rental Yield

<html><body>
Whenever you consider commercial property, it's important to fully understand what the overall yield is likely to be.
And the simple formula to arrive at an estimated overall figure is: yield = income + capital growth.
And investors often ask me how do average yields vary from one sector of the commercial property market to the other?
The short answer is: "They tend not to vary at all."
Now on the face of it, that might seem a strange response. But remember, you are now talking about the overall Yield from the property — not merely the net return, as far as Income is concerned.
Long-term Expectations
From my experience, investors are anticipating an overall yield from their commercial property (i.e. income and growth) of around 12% per annum.
<img class="aligncenter size-full wp-image-14360 colorbox-14357" src="https://his-best.biz/assets/2014/07/Yields2.jpg" alt="Overall Property Yields" width="556" height="306">
<img class="aligncenter size-large wp-image-14358 colorbox-14357" src="https://his-best.biz/assets/2014/07/Yields.tiff" alt="Anticipated Overall Yields" width="1" height="1">As this table explains, the composition of that yield will vary between the sectors.
And yet when taken together, the total for those components is expected to remain the same, across all three sectors.
In other words, if a retail a property is purchased returning 5% per annum, then that investor is anticipating a 7% capital growth each year.
Alternatively, there may be the odd occasion where you can negotiate a "terrific deal" on an industrial property, at around 11% per annum.
However, you need to realise that your capital growth will then most likely be down around 1% per annum.
And the reason you were able to achieve such a high income return was to provide you compensation for the anticipated meagre growth going forward.
Will there be Anomalies?
Of course, there will always be occasions where a vendor is caught in a tight spot; and that will enable you to sneer a great deal. However, that will generally be the exception.
Also, you may have noticed some of the recent retail sales in strip shopping centres occurring at extraordinary returns, as low as 3% net.
On the face of it, those investors are anticipating capital growth of 9% per annum. Unfortunately, that may turn out to be a fond hope — because of the present fragile nature of retailing.
Bottom line: The table above is intended to provide you with a handy guide for calculating your anticipated overall yield from commercial property.
Furthermore, it also enables you to select your preferred risk profile.
In other words, choosing between a higher income return, or higher growth. Or maybe, you decide upon the office sector, to provide a more balanced portfolio.
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chrislang-EQKojcgJPV

Understanding overall commercial property yields

<html><body>
Rental yields are understandably an important focus for many investors who need to consider their hip pocket. 
However, for units and houses around Australia – which capital cities offer the best returns?
Here are the capital cities from greatest to smallest for gross rental yields, from RP Data’s May 2014 collected statistics.
HOUSES
<ul>
<li>
5.8% - Darwin </li>
<li>
5.2% - Hobart</li>
<li>
4.6% - Brisbane </li>
<li>
4.3% - Canberra </li>
<li>
4.3% - Adelaide </li>
<li>
4.2% - Perth </li>
<li>
3.8% - Sydney </li>
<li>
3.4% - Melbourne </li>
<li>
3.9% - Combined capitals </li>
</ul>
Source: RP Data, May 2014 
Turn the page for the gross rental yields achievable for units.
<hr class="system-pagebreak">
UNITS
<ul>
<li>
5.8% - Darwin </li>
<li>
5.4% - Brisbane </li>
<li>
5.2% - Hobart </li>
<li>
5.0% - Canberra </li>
<li>
4.9% - Adelaide </li>
<li>
4.8% - Perth </li>
<li>
4.7% - Sydney </li>
<li>
4.4% - Melbourne </li>
<li>
4.7% - Combined capitals </li>
</ul>
(Source: RP Data, May 2014)
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po-LsXgBTHBmX

Which capital cities offer the best rental yields?

<html><body>
The 2013-2014 dwelling price upswing has triggered a significant drop in rental yields, according to RP Data.
Their research shows rents have failed to keep pace with prices in all capital cities, RP Data research analyst Cameron Kusher noted.
“As a result of values rising faster than rental rates, gross rental yields have fallen over the past year across each capital city,” he said.
<img src="/images/2014/05/22/kusher-may-22-two.gif" alt="">
Sydney and Melbourne were the only mainland capitals were rental growth was greater from 2013 to 2014 than the year prior, but were also the cities where rental yields saw the biggest downturn.
“These two cities also have the lowest yields of all capital cities, at 3.9% and 3.4% respectively,” he said.
Sydney rents rose by 3.7% in the past year, making it the only city where growth outstripped inflation.
By comparison, house prices in the city increased by 16.7% since April 2013.
Rental growth slowed in the other five cities, with Perth seeing the biggest drop.
<img src="/images/2014/05/22/kusher-may-22-four.gif" alt="">
Asking rents in Perth fell by 0.5% over the past 12 months, compared to an increase of 10.4% in the year prior.
Kusher said investors had remained active in the market despite shrinking rental returns.
“Rental growth has slowed markedly and rental yields are falling as value growth significantly outpaces rental growth,” he said.
<img src="/images/2014/05/22/kusher-may-22-three.gif" alt="">
The May RP Data-Rismark Home Value Index reported that combined capital city home values increased by 11.5%. At an individual capital city level, value growth ranged from 1.2% in Canberra to a 16.7% rise in Sydney.
Australia’s combined capital cities recorded an increase in rental rates of 2.4% over the past year.
Sydney, Melbourne and Hobart were the only capital cities where rental growth was greater over the past 12 months than for the previous 12 months. At the other end of the spectrum, growth slowed across five of the eight capital cities with Perth experiencing the most extreme slowdown.
Over the 12 months to April 2013, Perth rental rates had increased by 10.4% compared to a -0.5% fall over the most recent 12 months. 
Kusher suggests that most investors must be chasing capital growth rather than rental return. 
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jchancellor-FAypfDUnLy

Property rental yields fall across all capital cities

<html><body>
Before reading this article, it’s crucial that you understand <a href="/expert-insights/your-weekly-how-to-calculating-rental-yield">what your rental yield actually is</a>, and therefore the two dynamics that impact upon it.
These include (for gross rental yield): the price, and the amount of rent coming in, and (for net rental yield) your expenses. It's also worth knowing <a href="/expert-insights/how-to-use-the-rental-yield-statistic">the uses of the rental yield</a>.
Firstly, those in areas where rental demand is heading down will likely want to focus more on <a href="/expert-insights/investing/how-to-keep-good-tenants">tenant retention</a> and keeping a close eye on the market, including the vacancy rate. For those in stable areas who think their properties may be able to perform more strongly, there are certainly opportunities.
GETTING IN FOR A LOWER PRICE
We will touch on this point briefly. Over the years, Property Observer has covered <a href="/expert-insights/buying/the-10-ways-to-negotiate-a-better-deal-in-property-neil-jenman">many articles about negotiating</a> more effectively, <a href="/expert-insights/investing/seven-tips-for-beginning-property-investors">looking for undervalued properties</a> and <a href="/expert-insights/buying/the-dos-and-donts-of-preparing-to-bid-at-an-auction">bidding strategically at auction</a>. If you already own a property, short of selling the investment and absorbing the in/out costs, there’s very little you can do here.
When purchasing an investment property you also want to be aware of the potential up and coming maintenance on the home - this can strongly affect your overall cashflow position as you may end up regularly paying out for repairs and replacements.
If you are, however, looking to buy an investment property, then it’s worth playing with the rental yield equation to note the sizable effect that saving $10,000 on the asking price can have on your overall rental yield, and therefore cash flow situation. Keep this in mind when purchasing.
INCREASING THE RENT
Firstly, to remain competitive, you must not increase the rent beyond what the tenancy market deems acceptable in an area. Your property manager should be able to assist you in keeping your rent at the correct level for the market – and if you are lagging behind, then this is the first area to target to increase the yield.
However, there are reasons why you can increase the rent beyond natural increases in the market. For instance, you could consider one of the following:
<ul>
<li>Improvements A renovation or partial renovation, addition of an air conditioning unit or other outlay can be worthwhile to a tenant. They may be willing to pay more for this change. It’s worth getting your property manager to speak to your tenant, as well as doing a quick search as to the difference between your property and that asking a higher rental price. Are there any areas that you can easily improve? Consider adding bedrooms and bathrooms where possible for a potential uplift in rental return. 
</li>
<li>Adding another dwelling For investors in certain areas, this will be more possible. Those with houses, particularly in outer suburban areas, could consider adding a separate dwelling – such as a granny flat – that can then be rented out separately. Of course, this comes with its own combination of difficulties – such as a reduction of rent on the main house and, potentially, a higher vacancy rate. There can also be a hefty outlay to get a decent build. Here are some <a href="/expert-insights/building/the-four-pros-and-four-cons-of-building-a-granny-flat">pros and cons of this strategy</a>.Some swear by this strategy, while others remain sceptical. 
</li>
<li>Renting the property to multiple tenants Another option is to consider renting the home to a number of properties, perhaps on a room-by-room basis. While this, again, can see higher turnover and higher levels of wear-and-tear, and arguably a lower-quality tenant, you may see it give you the rental yield uplift you desire. 
</li>
<li>Consider turning the property into a holiday rental This is not going to be effective for all property owners, however those with a property in an appropriate holiday area with strong demand may find that the high returns available over the holiday period can push their yield up overall. 
</li>
<li>Furnishing the property This is, again, not a strategy that suits every rental. However, in areas where there is demand for furnished properties, it may suit to deck-out the property yourself. Specific tenants, particularly in shorter-stay locations, are willing to pay a premium for the property to be ready for an immediate move in.</li>
</ul>
Some investors will find that a regular rental income trumps a higher rental yield overall, but a less certain flow of tenants. This is particularly the case if you have <a href="/expert-insights/investing/how-to-keep-good-tenants">good tenants that you want to keep</a>. What have you done to increase the rent, and how effective has this been?
MINIMISING EXPENSES
Lastly, it’s down to minimising expenses. If you do not already know what all the ingoings and outgoings are for each of your investment properties, then you need to do some substantial paperwork to get on track.
Now it’s worth crunching the numbers – are there any areas that you could be saving yourself money with? What is affecting your net rental yield unfavourably? These can be factors that you will not be able to reduce – for instance, property management fees might not be negotiable and you may not want to consider self-managing. However, there are often other costs that you can reduce. For instance, over the past few years of ownership you may have befriended a plumber. Could that plumber offer you a better deal for future repairs? These small changes can help assist with your bottom line.
You might also find that other expenses affecting your rental yield include high interest rates or charges on a loan you haven’t recently assessed. Visit your broker for a loan health check.
YOU MIGHT WANT TO READ
<a href="/expert-insights/investing/the-top-suburbs-for-unit-rental-yield-around-the-country-ultimo-shines">The top suburbs for unit rental yield around the country</a> 
Margaret Lomas' <a href="/expert-insights/investing/how-to-boost-cash-flow-using-your-investment-property">How to boost cash flow using your investment property</a>
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jduke-EHk3XBmHkn

How to boost your rental yield

<html><body>
Though negative gearing has short term benefits, many investors are looking for properties that can bring them high returns for a low price.
Using statistics from RP Data, Property Observer has put together the top five suburbs for unit rental yields by state.
Rental yield, the proportion of rental income to a property’s purchase price, is one of the key indicators of value for an investment property.
Predictably, New South Wales and Queensland currently offer the best yields for units. The price pressure in the Sydney rental market is well known, and Queensland has flagged by many of our observers as the next market to watch.
However, a property’s rental yield is only one factor in its worth to you as an investor. A property may have a high yield because property prices are depressed in that area and a local economic downturn has lowered the population’s buying capacity, giving it little potential for capital growth.
Another suburb may have a low rental yield because it consistently attracts blue-chip buyers and there isn’t much of a rental market. So while searching for an apartment, remember to consider median values, location, population and the economy.
New South Wales
While Broulee has the highest rental yield for units of any suburb in Australia, it may not be the investment you’re looking for – the seaside resort town on the south coast had a population of just 2,897 in 2011.
<ol>
<li>
<a href="/news">Broulee</a>  Rental yield: 12.36% Median price: $305,000 
</li>
<li>
<a href="/news">Ultimo </a> Rental yield: 11.42% Median price: $255,000 
</li>
<li>
<a href="/news">North Albury </a> Rental yield: 8.52% Median price: $116,000 
</li>
<li>
<a href="/news">Nambucca Heads </a> Rental yield: 8.32% Median price: $200,000 
</li>
<li>
<a href="/news">Bella Vista </a> Rental yield: 8.13% Median price: $381,000</li>
</ol>
Other high yielding NSW suburbs for units: <a href="/news">Huskisson </a>(7.49%), <a href="/news">Lavington </a>(7.44%), <a href="/news">Taree </a>(7.44%), <a href="/news">Kooringal </a>(7.38%), <a href="/news">Raymond Terrace</a> (7.21%).
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 Australian Capital Territory
<ol>
<li>
<a href="/news">Bonner</a> Rental yield: 6.78% Median price: $345,000 
</li>
<li>
<a href="/news">City </a> Rental yield: 6.3% Median price: $425,000 
</li>
<li>
<a href="/news">Franklin</a> Rental yield: 6.29% Median price: $310,000 
</li>
<li>
<a href="/news">Downer </a> Rental yield: 6.26% Median price: $299,000 
</li>
<li>
<a href="/news">Lyons </a> Rental yield: 6.12% Median price: $289,000</li>
</ol>
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South Australia
<ol>
<li>
<a href="/news">Risdon Park South</a> Rental yield: 9.83% Median price: $86,000 
</li>
<li>
<a href="/news">Whyalla</a> Rental yield: 8.67% Median price: $168,000 
</li>
<li>
<a href="/news">Risdon Park</a> Rental yield: 8.4% Median price: $99,000 
</li>
<li>
<a href="/news">Berri</a> Rental yield: 8.2% Median price: $111,000 
</li>
<li>
<a href="/news">Davoren Park</a> Rental yield: 7.89% Median price: $129,000</li>
</ol>
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 Tasmania
Tasmania had the lowest rental yield for units of any state or territory. Despite offering some of the <a href="/expert-insights/investing/the-top-10-most-affordable-capital-city-suburbs-for-units-rp-data">cheapest units in Australia</a>, there isn't the rental market for units to sustain high yields.
<ol>
<li>
<a href="/news">Brighton </a> Rental yield: 6.22% Median price: $218,000 
</li>
<li>
<a href="/news">Claremont </a> Rental yield: 6.02% Median price: $186,000 
</li>
<li>
<a href="/news">Glenorchy</a>  Rental yield: 6.65% Median price: $192,000 
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<li>
<a href="/news">Hadspen </a> Rental yield: 6% Median price: $130,000 
</li>
<li>
<a href="/news">Lutana </a> Rental yield: 5.99% Median price: $215,000</li>
</ol>
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 Northern Territory
<ol>
<li>
<a href="/news">Braitling </a> Rental yield: 7.23% Median price: $302,000 
</li>
<li>
<a href="/news">Katherine </a> Rental yield: 7% Median price: $260,000 
</li>
<li>
<a href="/news">Gillen </a> Rental yield: 6.93% Median price: $315,000 
</li>
<li>
<a href="/news">Larrakeya </a> Rental yield: 6.82% Median price: $465,000 
</li>
<li>
<a href="/news">Desert Springs </a> Rental yield: 6.54% Median price: $370,000</li>
</ol>
<hr class="system-pagebreak">
Queensland
Queensland's rental yields outperformed most units in the rest of the country. But as we saw in New South Wales, if it looks too good to be true, it usually is. Middlemount, with a median unit rental yield of 11.97%, has a population of just 1,914 according to the 2011 census.
<ol>
<li>
<a href="/news">Middlemount</a> Rental yield: 11.97% Median price: $315,000 
</li>
<li>
<a href="/news">Andergrove </a> Rental yield: 11.43% Median price: $178,000 
</li>
<li>
<a href="/news">Woree</a> Rental yield: 9.75% Median price: $120,000 
</li>
<li>
<a href="/news">Bungalow </a> Rental yield: 8.8% Median price: $130,000 
</li>
<li>
<a href="/news">Garbutt</a> Rental yield: 8.76% Median price: $190,000</li>
</ol>
Other high yielding suburbs for units: Holloways Beach (8.5%), Manunda (8.4%), Logan Central (8.19%), Beenleigh (7.95%), Manoora (7.87%), Slacks Creek (7.87%).
<hr class="system-pagebreak">
 Victoria
Unit yields in Melbourne have been low for some time, due to high prices in the inner city and increasing supply with new unit developments. Victoria's highest yielding suburbs are all outside of the capital city, save the northern suburb of Macleod. 
<ol>
<li>
<a href="/news">Hamilton</a> Rental yield: 8.9% Median price: $129,000 
</li>
<li>
<a href="/news">Macleod </a> Rental yield: 7.31% Median price: $198,000 
</li>
<li>
<a href="/news">Alfredton</a> Rental yield: 6.87% Median price: $191,000 
</li>
<li>
<a href="/news">Redan </a> Rental yield: 6.83% Median price: $168,000 
</li>
<li>
<a href="/news">Horsham </a> Rental yield: 6.68% Median price: $179,000</li>
</ol>
<hr class="system-pagebreak">
 Western Australia:
<ol>
<li>
<a href="/news">Newman </a> Rental yield: 9.95% Median price: $575,000 
</li>
<li>
<a href="/news">Boulder </a> Rental yield: 8.9% Median price: $175,000 
</li>
<li>
<a href="/news">South Hedland </a> Rental yield: 8.39% Median price: $558,000 
</li>
<li>
<a href="/news">Piccadilly</a> Rental yield: 7.83% Median price: $236,000 
</li>
<li>
<a href="/news">Kalgoorlie </a> Rental yield: 7.74% Median price: $235,000</li>
</ol>
Remember, while performance indicators can give you a superficial understanding of a suburb's investment value, most offer the greatest value as comparative measures.
If you're considering a property investment, look back at the yields historically found in that area to get an understanding of which way the trend is heading, compare your figures with other areas, and consider other valuation tools.
This article article has been amended to include South Australian figures.
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