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

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Mount Druitt - and the 2770 postcode - was identified as one of the most affordable rental suburbs closest to the Sydney central business district, according to Australia's first rental affordability index.
The index is a joint project between peak housing advocate National Shelter, Community Sector Banking and SGS Economics &amp; Planning.
Property Observer went looking for select properties for rent in Sydney's Mount Druitt and came up with a range. Here's the highest, the lowest and a couple in-between:
1. A four-bedroom duplex at <a href="https://www.realestateview.com.au/rental-properties/20a-druitt-street-mount-druitt/Property-Details-rent-residential-9781276" target="_blank">20A Druitt Street, MOUNT DRUITT 2770</a> (above) available for $550 a week tops the rentals. The property last traded for $360,000 in 2012.
2. A three-bedroom house on <a href="https://www.realestateview.com.au/rental-properties/15-anderson-avenue-blackett/Property-Details-rent-residential-9780114" target="_blank">15 Anderson Avenue, BLACKETT 2770</a> (below) is available for $380 a week. The house sold in March for $440,000 at a gross rental yield of 4.49%.
<img src="/images/2015/11/25/15-Anderson-Avenue-Blackett-NSW-2770-Real-Estate-photo-1-large-9780114.jpg" alt="" width="569" height="427">
3. A three-bedroom unit at <a href="https://www.realestateview.com.au/rental-properties/2-11-13-durham-street-mount-druitt/Property-Details-rent-residential-9776667" target="_blank">2/11-13 Durham Street, MOUNT DRUITT 2770</a> (below) tops the rentals for apartments at $420 a week. The unit sold for $398,000 in 2014 at a gross rental yield of 5.49%.
<img src="/images/2015/11/25/2-11-13-Durham-Street-Mount-Druitt-NSW-2770-Real-Estate-photo-1-large-9776667.jpg" alt="" width="505" height="379">
4. The bottom one is a two-bedroom unit at <a href="https://www.realestateview.com.au/rental-properties/16-28-hythe-street-mount-druitt/Property-Details-rent-residential-9552616" target="_blank">16/28 Hythe Street, MOUNT DRUITT 2770</a>, (below) available for $280 a week. The property last traded in 2007 for $145,000.
<img src="/images/2015/11/25/16-28-Hythe-Street-Mount-Druitt-NSW-2770-Real-Estate-photo-1-large-9552616.jpg" alt="" width="416" height="312">
The median sale price of a house in Mount Druitt is $520,000 with a median gross yield of 3.9%, according to <a href="/news">www.propertyvalue.com.au</a>.
The median rental is $390 per week and it sits at 808 across NSW, according to the data.
For apartments, the median sale price is $331,000 with a median gross yield of 5.3 percent. 
The median rent is $340 per week, which is well below the national average of $390 per week.
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j.ballantyne1990-6AQqhLzZaK

Mount Druitt rental affordability: What landlords are asking from tenants

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Gross rental yields have shown a consistent downwards trend towards lower returns for new investors, with the average gross rental yield for capital city houses down to a record low of 3.4% from 4.2% in May 2012, according to the CoreLogic RP Data Home Value Index.
Similarly, the average gross rental yield on a capital city unit has dropped to 4.3% from a high of 5% in May 2013. 
According to Lawless, the low yield profile in Melbourne and Sydney, where the gross yield on both houses and units are at all-time lows, is likely to act as a further disincentive to investors in these markets.
“Investors are already paying higher mortgage rates, coupled with the growing acceptance that the growth cycle is peaking out at a time when rental income is at a record low which doesn’t reflect healthy investment fundamentals in these cities. Additionally, the higher deposit requirements for most new investment loans lessens the attractiveness of negative gearing benefits.”
Yield compression has been a factor across every capital city except Hobart where weekly rents have outperformed capital gains.
For the first time since 2001, the Darwin housing market has relinquished the title as the city with the highest gross yields across its detached housing market with the gross yield falling to 5.2 percent in October.
"In Hobart, gross yields have held relatively firm at 5.3%. The relative affordability of the Hobart housing market, coupled with its lifestyle appeal and higher rental returns should help to revitalise Australia’s southernmost capital city housing market,” he said.
Hobart remains the only capital city where dwelling values are lower than they were at the beginning of 2009. Tough economic conditions across the state and a lack of population growth has limited housing demand in Hobart. Transaction numbers are, however, up 1.2% over the past year, suggesting buyers may slowly be returning to the market.
<a href="/images/2015/11/Screen%20Shot%202015-11-03%20at%2011.51.32%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/11/Screen%20Shot%202015-11-03%20at%2011.51.32%20AM.png" alt="">
Several other signs indicate the housing market is starting to lose some steam.
“Clearance rates have been trending lower since April this year, with Sydney and Melbourne now showing auction clearances that are below 70 percent week to week. Additionally, monthly mortgage related activity across CoreLogic RP Data’s valuation platforms was lower when compared with the same period a year earlier; the first annual fall in platform activity since 2013.
CoreLogic valuation platforms account for nearly 98 percent of all bank mortgage-related valuation instructions and virtually provide a real time indicator about mortgage demand.
“Added to this is record levels of new housing supply now entering the market. We are now seeing a picture of reduced house price inflation over the coming year.
“We are also seeing listing numbers move higher than a year ago in Sydney. This is the first time our data has shown housing stock levels to be higher compared with the same period a year prior since mid-2012. Higher levels of housing stock means more choice for buyers which should ultimately result in some rebalancing towards buyers over sellers when it comes to negotiating on price.
“If the trend towards higher stock levels persists, we can expect Sydney buyers to face less urgency when it comes to making their purchase decision around property and higher discounting rates from vendors as they face more competition in the market,” Lawless said.
<a href="/images/2015/11/Screen%20Shot%202015-11-03%20at%2011.51.32%20AM.png" target="_blank"></a>
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jchancellor-FAypfDUnLy

Rental yields continue downtrend: CoreLogic RP Data

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The only capital city where rental yields aren’t being compressed is Hobart, according to CoreLogic RP Data.
Weekly rents in Hobart are rising at a faster pace than dwelling values which are down slightly over the past year.
Hobart is now showing the second highest yield profile across the capital cities after Darwin.
"In fact, it may not be long before Hobart overtakes Darwin as the highest yielding capital, considering the pace of rental falls across the Darwin market place," Tim Lawless recently suggested.
Property Observer went looking for rentals in Hobart and found a mix of units and houses in the range $152 to $850 per week.
For units, the lowest came in at $152 per week, while the highest was $850.
1. This neat one-bedroom unit at <a href="https://www.realestateview.com.au/rental-properties/49a-emmaline-court-rokeby/Property-Details-rent-residential-9657980" target="_blank">49A Emmaline Court, Rokeby</a> is to be rented out for $152 per week. The listing is by Danica Reeves of Ray White and the unit is available from October 28.
2. This three-bedroom fully furnished apartment at <a href="https://www.realestateview.com.au/rental-properties/5b-117-collins-street-hobart/Property-Details-rent-residential-9687466" target="_blank">5B/117 Collins Street</a> is out for rent for $850 per week. The listing agent is Jan Nielsen of Salamanca Realty.
Among houses, the lowest rental was $250 per week and the highest $650.
1. This three-bedroom home with a garage at <a href="https://www.realestateview.com.au/rental-properties/1-newton-place-bridgewater/Property-Details-rent-residential-9541772" target="_blank">1 Newton Place, Bridgewater</a> is available for $250 per week. Amanda Harvey of LJ Hooker is the listing agent. 
2. At the higher end, this four-bedroom house sitting on the corner of Barrack and Melville Streets at <a href="https://www.realestateview.com.au/rental-properties/2-76-barrack-street-west-hobart/Property-Details-rent-residential-9706860" target="_blank">2/76 Barrack Street, West Hobart</a> has views of the city and River Derwent. It is to be rented out for $650 per week through Carol Bogun of Falls Real Estate.
 
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Hobart house rentals rising faster than any other capital city: What investors will yield

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New research from Savills on the Adelaide office market has indicated premium CBD space is going for between $500sqm and $560sqm for gross face rent.
The South Australia Quarter Times, covering Q3 2015, also noted the typical lease term of such property was between seven and ten years.
<a href="/images/2015/10/21/Screen%20Shot%202015-10-21%20at%202.32.50%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/10/21/Screen%20Shot%202015-10-21%20at%202.32.50%20PM.png" alt="" width="808" height="531">
For more information, click <a href="https://www.savills.com.au" target="_blank">here</a>.
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mick.cee-iDmgDDAmu8

Premium Adelaide CBD office space rentals fetch nearly $560sqm gross: Savills

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One of the side effects of Sydney’s boom is that prices have risen a lot but rents haven’t, so yields have become ugly – i.e. not attractive to investors.
Melbourne prices haven’t risen as much (generally speaking) but the city has developed a gap between prices and rents similar to Sydney’s. These days you’re lucky to find a rental yield as high as 3% - which, even in these days of low interest rates, is unappealing.
Other capital cities like Adelaide and Brisbane have much better yields on offer, but for investors seeking properties that can pay their own way the pickings are slim.
There was a time when investors could access double-digit rental yields in resources-related locations (if they were willing to disregard risk). But many of those markets have collapsed, either through developer over-supply or the impact of FIFO workforces or the mining downturn - or some combination of those three factors.
There’s nowhere left that provides 10%-plus rental yields. Some of the more careless research houses publish lists claiming you can get 15% or 20% yields in certain locations, but those are statistical aberrations that prove the adage about “garbage in, garbage out”, exacerbated by researchers with a garbage approach to business ethics (as long as it generates publicity, to hell with accuracy).
A recent list claimed you could get yields above 30% (!!) in Mission Beach in Queensland, when in reality typical yields on residential property in this location are below 5%. If 30% yields were truly achievable, every investor in Australia would be stampeding north and buying every property in sight. 
The best yields you can find anywhere in Australia – I mean genuine rental yields based on real situations, not computer glitches, in locations of substance – are to be found in Cairns.
Cairns is one of a number of regional Queensland cities where you can readily buy property that pays its own way – i.e. cash flow positive or at least neutral. 
In the North Queensland city, you can find plenty of houses with rental returns in the 5.5% to 6% range and apartments between 7% and 8%. I can’t find another market of substance with rental yields that strong. 
Other regional cities in the state offer attractive returns as well. The Sunshine Coast, Townsville and Hervey Bay have this in common: houses where yields are typically in the 4.7% to 5.5% range and units that generally range from 5.7% to 6.5%. If you hunt around, you can find better.
The other common things they share are strong economies, growing populations, major spending on infrastructure, ambitious local councils and plenty of affordable dwellings. They’re all on growth paths, some of them after long periods of under achievement.
Some, like Cairns and the Sunshine Coast, are transition economies, where civic and business leaders have recognised that the historic reliance on tourism makes them vulnerable to downturns caused by forces beyond their control. So they’ve been proactively working to broaden the economic base and encourage new industries.
The Sunshine Coast now has a medical sector that didn’t previously exist, based on the $2 billion University Hospital which is generating all kinds of new medically-related development around it. It’s helping the Sunshine Coast become a regional city, rather than a coastal retreat for tourists and retirees. Similar things are happening in Cairns and, to a lesser extent, in Hervey Bay.
These property markets are starting to deliver good price growth and strong rents, with yields far in excess of what you can get in any of the capital cities.
 Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a>
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Sydney rental yields becoming ugly: Terry Ryder

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Dwelling prices across Australia in 2016 are tipped to rise at the slowest pace recorded since 2012, according to the Housing Boom and Bust Report by SQM Research.
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<div>The report predicts average capital city dwelling prices will rise between 3% and 8% for the full calendar year, down from the current 9.8% recorded for the 12 months to June 2015.</div>
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<div>SQM managing director Louis Christopher said the slowdown will occur predominantly as a result of a slowing Sydney property market, which is forecasted to rise between 4% and 9% and Melbourne is forecasted to overtake Sydney and be the best outperforming capital city in 2016 with a forecast rise in dwelling prices of between 8% to 13%.</div>
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<div>"Nationally, the rental market is likely to see a continued flat market with expected rental changes of between 0% and 3%. Darwin is tipped to record another year of significant declines in rents of -12% to -8%.  While Hobart is tipped to record the fastest rental growth of all capital cities at +5% to +8%," he said.</div>
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<div>"This year, it has become quite apparent that rents have slowed, possibly as a result of the lower inflationary environment. We believe there is evidence that rents will slow further in 2016 with our average capital city forecast to be 0% to 3%. Perth and Darwin will experience the largest falls in rents however this is just part of an ongoing trend currently being recorded in these two cities. Hobart, Melbourne and the Gold Coast will likely record the strongest rental increases. </div>
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<div>"We believe the threat of a massive oversupply in Melbourne has been overstated. Indeed our vacancy rates for that city have fallen for the year as population growth and housing formation have quickly absorbed the new stock being completed."</div>
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Melbourne to be strongest, but national housing market will slow in 2016: SQM Research

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The highest rental growth regions for units in the September quarter were in NSW's mid-north coast, the Victorian suburb of Wimmera, Queensland's south west, outer Adelaide in South Australia and the Tasmanian suburb of Mersey-Lyell, according to CoreLogic RP Data.
CoreLogic RP Data's Quarterly Regional Market Rental Review to September found unit rents on NSW's mid-north coast increased by 3.2% over the quarter to $320/week and rents in Victoria's Wimmera increased by 2.5% over the quarter to $205/week.
South west Queensland rents increased by 11.8% over the quarter to $308/week, outer Adelaide rents increased by 4.0% over the quarter to $260/week and rents in WA's central increased by 5.6% over the quarter to $265/week.
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The Tasmanian suburb of Mersey-Lyell rents increased by 4.5% over the quarter to $230/w.
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NSW units lead national regional rental growth: CoreLogic RP Data

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Combined dwelling rental yield across all capital cities is at 3.5%, down from 3.8% twelve months ago, according to CoreLogic RP Data.
Results from CoreLogic RP Data's July Rental Index found the current yield in Hobart is 5.2%, Brisbane 4.5% and Melbourne 3.1%
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Combined capital city dwelling rental yield at 3.5%: CoreLogic RP Data

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House yields for Melbourne and Sydney are at a record low of 3.1%, according to CoreLogic RP Data's August Rental Index.
The review noted yields for houses are highest in Darwin, at 5.5%, with unit yields are lowest in Sydney and Melbourne at 4.1% and highest in Hobart and Darwin (5.5%).
"Across most cities house rental yields are lower now than they were at the same time last year, with Canberra the only exception with gross yields steady over the year," it stated.
"The unit market shows similar trends to the detached housing market. Yields are higher than a year ago in Hobart, while gross yields in Brisbane are unchanged and elsewhere yields have softened over the past year. 
"The cheaper up front cost of units and their relatively weaker capital growth performance is resulting in a lower decline in yields."
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House rental yields lowest in Melbourne, highest in Darwin: CoreLogic RP Data

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Gross rental yields for combined capital city houses are 3.4% and 4.3% for units in August, according to CoreLogic RP Data.
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The CoreLogic RP Data August Rental Index Results found combined capital city house and unit rental yields are currently at a record low. A year ago, combined capital city gross rental yields for houses were 3.7% and 4.5% for units.
Rental returns are expected to fall lower over the next few months.
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