Investing in Australian property continues to be a popular strategy for those looking to build long-term wealth, with savvy investors seeking high-yield suburbs that offer strong rental returns. Identifying the best suburbs for investment can make a significant difference in generating consistent cash flow and capital growth. Australia’s property market is diverse, with several regions offering attractive yields thanks to strong rental demand, infrastructure developments, and growing economies.
In this article, we’ll highlight the best suburbs to invest in Australia—focusing on areas that offer the highest rental yields, making them ideal for investors looking to maximise their returns. From regional hotspots to up-and-coming urban areas, these suburbs present excellent opportunities for those seeking to invest wisely in the coming year.
We will start with the top 10 suburbs in Australia to invest if you want to buy a house. If you are interested in buying a unit instead, click here to see the top 10 suburbs for unit investment.
Top 10 suburbs with highest rental yield in Australia (Houses)
The top 10 suburbs with the highest rental yields for houses are predominantly based in mining towns, where demand for accommodation from workers keeps rental prices high and property values relatively low. Most of these high-yield suburbs are located in Western Australia, where the mining industry, particularly for resources like iron ore, gas, and nickel, fuels the local economy and drives demand for rental properties. Suburbs such as Baynton, Millars Well, and Pegs Creek, all in the Pilbara region, consistently rank among the top due to their close proximity to major mining hubs like Karratha. Investors are attracted to these areas because they offer excellent rental returns, with low property prices providing a solid entry point and steady demand from fly-in fly-out (FIFO) workers helping to sustain high yields.
Outside of WA, a few key suburbs in Queensland also make the list, reflecting the importance of the coal mining industry in the Bowen Basin. Suburbs like Collinsville and Moranbah stand out for their strong rental demand driven by the area's coal mining operations. The influx of workers seeking housing close to their employment sites keeps vacancy rates low and rental prices high, offering investors consistent cash flow. While WA dominates the top spots for rental yield, these Queensland mining towns also provide attractive opportunities for property investors looking to capitalise on Australia's resource-driven economy.
#10. Pegs Creek, Western Australia
Postcode: 6714
Median House Price: $497,500
Median Weekly Advertised Rent: $988
Gross Rental Yield: 10.3%
Pegs Creek, located in the Pilbara region of Western Australia, is known for offering high rental yields, particularly due to its proximity to the mining hub of Karratha. The demand for housing in Pegs Creek is driven by its location within a booming resources sector, where mining and resource companies are central to the local economy. Many workers in this industry seek rental properties, creating strong demand and driving up rental returns. Additionally, the region's relatively limited housing supply compared to the demand has kept vacancy rates low, further contributing to the high rental yields. Pegs Creek remains attractive for investors because it combines affordability with the potential for significant rental income, making it a standout suburb in the Australian market for property investment.
#9. Boulder, Western Australia
Postcode: 6432
Median House Price: $275,000
Median Weekly Advertised Rent: $550
Gross Rental Yield: 10.4%
Boulder, located near the mining city of Kalgoorlie in Western Australia, is known for its high rental yields, primarily driven by the strong demand for rental housing from workers in the region's booming mining industry. Kalgoorlie-Boulder's economy is heavily tied to gold and mineral extraction, attracting a large workforce that often requires rental accommodation. This consistent demand, combined with the relatively low property prices in Boulder, has led to strong rental returns for property investors. The limited housing supply and the transient nature of the mining workforce keep vacancy rates low, further boosting rental yields. Boulder's affordability and proximity to major mining operations make it an attractive option for investors seeking high yields in regional Australia.
#8. Moora, Western Australia
Postcode: 6510
Median House Price: $187,500
Median Weekly Advertised Rent: $380
Gross Rental Yield: 10.5%
Moora, located in Western Australia’s wheatbelt region, boasts high rental yields due to its strong agricultural economy and the resulting demand for housing from workers in nearby farming industries. As a regional town, Moora has relatively affordable property prices, which, when combined with solid rental demand, creates attractive rental yields for property investors. The town serves as a central hub for the surrounding agricultural communities, drawing both permanent residents and transient workers, further increasing the demand for rental properties. With a limited housing supply and steady population, investors in Moora enjoy consistent returns, making it a desirable location for those looking to invest in regional areas with high rental yields.
#7. Baynton, Western Australia
Postcode: 6714
Median House Price: $682,500
Median Weekly Advertised Rent: $1,400
Gross Rental Yield: 10.7%
Baynton, a suburb of Karratha in Western Australia’s Pilbara region, offers high rental yields due to its proximity to the region’s booming mining and resource industries. As a major hub for oil, gas, and mining operations, Karratha attracts a large, transient workforce, many of whom seek rental accommodation in suburbs like Baynton. With relatively high demand for housing and a limited supply, vacancy rates in Baynton remain low, pushing up rental prices and leading to strong rental yields for property investors. Additionally, Baynton is known for its newer housing developments, which appeal to professionals and families moving to the area for work, making it a highly sought-after suburb for both tenants and investors. The combination of strong rental demand and steady property prices has made Baynton an attractive option for investors looking for high rental returns in Western Australia's resource-driven markets.
#6. Nickol, Western Australia
Postcode: 6714
Median House Price: $560,000
Median Weekly Advertised Rent: $1,200
Gross Rental Yield: 11.1%
Nickol, a suburb of Karratha in Western Australia's Pilbara region, offers some of the highest rental yields in the country, driven largely by its proximity to the thriving mining and resource industries. The region’s economic focus on natural gas, oil, and iron ore extraction has created a continuous demand for rental properties, as many workers prefer to live close to their workplaces. With a large transient workforce in need of accommodation and limited housing availability, rental prices have remained high, contributing to strong yields for property investors. Additionally, Nickol features modern housing developments, making it attractive for professionals and families relocating to the area for work, further fueling demand. The combination of resource-driven economic stability, low vacancy rates, and high demand makes Nickol a top investment choice for those seeking high rental returns in the Pilbara region.
#5. Kambalda West, Western Australia
Postcode: 6442
Median House Price: $175,000
Median Weekly Advertised Rent: $380
Gross Rental Yield: 11.3%
Kambalda West, located in Western Australia’s Goldfields region, is known for its high rental yields due to its proximity to mining operations, particularly in gold and nickel extraction. The town serves as a residential hub for workers employed in nearby mines, creating strong demand for rental properties. This demand, combined with relatively low property prices in the area, contributes to the suburb’s attractive rental returns for investors. Furthermore, the transient workforce, including fly-in fly-out (FIFO) workers, ensures a steady demand for rental housing, keeping vacancy rates low. The combination of affordable housing and high demand for accommodation in the mining sector makes Kambalda West a hotspot for property investors looking to capitalise on high rental yields in regional Australia.
#4. Mornington, Queensland
Postcode: 4825
Median House Price: $222,500
Median Weekly Advertised Rent: $495
Gross Rental Yield: 11.6%
Mornington, located in the City of Mount Isa in Queensland, offers high rental yields due to its close ties to the region’s mining industry. With Mount Isa serving as one of the largest mining hubs in Australia, demand for rental housing in nearby suburbs like Mornington remains consistently strong. Many mining and resource workers, including fly-in fly-out (FIFO) employees, seek rental accommodation close to their workplaces, leading to high rental demand. Moreover, the relatively affordable property prices in Mornington compared to other parts of Queensland provide a solid entry point for investors, while high rents ensure strong rental returns. The combination of a steady influx of workers, low vacancy rates, and attractive property prices make Mornington a top choice for investors looking to capitalise on high rental yields in a resource-driven market.
#3. Kambalda East, Western Australia
Postcode: 6442
Median House Price: $147,500
Median Weekly Advertised Rent: $330
Gross Rental Yield: 11.6%
Kambalda East, located in Western Australia’s Goldfields-Esperance region, is known for its high rental yields, largely driven by the area’s mining activity. The suburb supports a workforce employed in nearby nickel and gold mines, creating strong demand for rental properties from both permanent and fly-in fly-out (FIFO) workers. Additionally, property prices in Kambalda East remain relatively low, allowing investors to enter the market affordably while benefiting from high rental demand. The region’s reliance on mining keeps vacancy rates low, ensuring that rental properties are rarely unoccupied. This combination of low property prices and consistent rental demand from the mining industry has made Kambalda East an attractive option for investors seeking high rental yields in regional Australia.
#2. Millars Well, Western Australia
Postcode: 6714
Median House Price: $483,750
Median Weekly Advertised Rent: $1,100
Gross Rental Yield: 11.8%
Millars Well, located in Karratha in Western Australia’s Pilbara region, enjoys high rental yields largely due to its proximity to the area’s mining and resource sectors. The Pilbara region is a hub for iron ore, gas, and oil production, which attracts a steady stream of workers who need rental accommodation. Millars Well is particularly attractive for families and professionals working in these industries, creating strong demand for housing. With relatively low property prices compared to the high rental income, investors in Millars Well benefit from strong rental returns. Additionally, Karratha’s status as a central hub for the resource industry ensures that demand remains consistent, keeping vacancy rates low and rental yields high. The combination of affordable entry prices and sustained demand from a transient workforce makes Millars Well a lucrative option for property investors looking for high yields.
#1. Collinsville, Queensland
Postcode: 4804
Median House Price: $160,000
Median Weekly Advertised Rent: $368
Gross Rental Yield: 12.0%
Collinsville, located in Queensland’s Bowen Basin, is known for the highest rental yields in Australia of 12.0% due to its strong connection to the region's coal mining industry. The town serves as a hub for workers involved in nearby coal mines, and as a result, there is consistent demand for rental properties from both permanent residents and fly-in fly-out (FIFO) workers. The relatively low property prices in Collinsville make it an attractive entry point for investors, while the steady flow of mining workers ensures high occupancy rates and strong rental returns. The town's reliance on the resource sector keeps demand stable, offering investors high rental yields as properties are rarely left vacant.
Top 10 suburbs with highest rental yield in Australia (Units)
The top 10 suburbs with the highest rental yields for units in Australia are primarily concentrated around mining towns, where demand for accommodation from transient workers drives up rental prices. Many of these high-yielding suburbs are located in Western Australia, particularly in regions like the Pilbara and Goldfields-Esperance, where major mining activities are ongoing. Suburbs such as Newman, South Hedland, and Baynton offer strong rental returns due to the influx of fly-in fly-out (FIFO) workers, who prefer renting units close to their work sites. The demand for short-term and long-term accommodation in these areas remains steady, ensuring low vacancy rates and keeping rental yields high.
Queensland also contributes a key suburb to this list, with Moranbah in the Bowen Basin experiencing high demand for rental units due to the region's thriving coal mining industry. These mining-dependent areas attract a consistent flow of workers needing rental accommodations, which significantly boosts rental yields. In both Western Australia and Queensland, the affordability of units combined with high rental prices due to limited supply makes these mining towns a hotspot for investors seeking high rental yields in the unit market.
#10. Cable Beach, Western Australia
Postcode: 6726
Median House Price: $350,000
Median Weekly Advertised Rent: $700
Gross Rental Yield: 10.4%
Cable Beach, located in Broome, Western Australia, boasts high rental yields due to its status as a popular tourist destination and its growing local economy. The area is famous for its stunning white sandy beaches and beautiful sunsets, attracting both long-term residents and tourists, which fuels strong demand for rental properties, particularly during the high season. Additionally, the growing number of infrastructure projects in Broome, coupled with a limited housing supply, keeps vacancy rates low, further driving up rental prices. Investors are drawn to Cable Beach because it offers a unique combination of tourist-driven demand and regional growth, providing opportunities for strong rental returns.
#9. Sorrento, Western Australia
Postcode: 6020
Median House Price: $275,000
Median Weekly Advertised Rent: $575
Gross Rental Yield: 10.9%
Sorrento, located along the northern coastal suburbs of Perth in Western Australia, offers high rental yields due to its desirable beachside location and proximity to both the city and local amenities. As a popular residential area, Sorrento attracts a mix of professionals, families, and retirees, drawn to its scenic coastal lifestyle, beautiful beaches, and recreational facilities. The suburb’s proximity to Hillarys Boat Harbour and its well-regarded schools make it highly appealing for long-term renters. With relatively high property values and strong rental demand, Sorrento maintains low vacancy rates, pushing up rental prices and offering investors attractive rental returns. Its mix of lifestyle appeal and accessibility to Perth’s central business district makes Sorrento a lucrative option for investors seeking solid, long-term rental income.
#8. Bulgarra, Western Australia
Postcode: 6714
Median House Price: $282,500
Median Weekly Advertised Rent: $595
Gross Rental Yield: 11.0%
Bulgarra, located in the resource-rich town of Karratha in Western Australia, offers high rental yields primarily due to its proximity to major mining and resource industries. The suburb attracts a large workforce employed in the nearby iron ore, gas, and oil projects, with many workers opting for rental accommodation. The high demand for rentals, driven by fly-in fly-out (FIFO) workers and the transient population, ensures low vacancy rates and strong rental returns. Additionally, Bulgarra has relatively affordable property prices compared to other suburbs in Karratha, making it an attractive option for investors looking to capitalize on consistent rental demand and high yields in one of Australia’s key resource regions. This mix of affordability and strong rental demand has positioned Bulgarra as a hotspot for investors seeking high rental returns.
#7. Pegs Creek, Western Australia
Postcode: 6714
Median House Price: $413,500
Median Weekly Advertised Rent: $875
Gross Rental Yield: 11.0%
Pegs Creek, a suburb in Karratha, Western Australia, is known for its high rental yields due to its close proximity to major mining operations in the Pilbara region. Karratha serves as a central hub for workers in the mining, oil, and gas industries, and Pegs Creek benefits from the high demand for rental accommodation from both long-term residents and fly-in fly-out (FIFO) workers. The consistent influx of resource industry employees drives low vacancy rates, and with relatively affordable property prices compared to other suburbs, Pegs Creek offers investors strong rental returns. Its central location within Karratha, close to amenities and employment centres, further enhances its attractiveness for renters, contributing to its reputation as a high-yield investment suburb.
#6. Somerville, Western Australia
Postcode: 6430
Median House Price: $260,000
Median Weekly Advertised Rent: $600
Gross Rental Yield: 12.0%
Somerville, a suburb in Kalgoorlie-Boulder in Western Australia, experiences high rental yields due to its strategic location within the region’s mining hub. The demand for rental properties in Somerville is largely driven by the workforce employed in the nearby gold mines and other resource-based industries. As a key residential area, Somerville attracts both long-term residents and fly-in fly-out (FIFO) workers, leading to consistent rental demand. Additionally, relatively affordable property prices compared to other Australian regions, combined with high rental rates, result in strong rental yields for investors. The suburb's proximity to essential services, schools, and the Kalgoorlie town center further adds to its appeal, ensuring a steady stream of renters looking for accommodation close to their workplace. These factors make Somerville an attractive option for property investors seeking high rental returns in a resource-driven economy.
#5. Newman, Western Australia
Postcode: 6753
Median House Price: $195,000
Median Weekly Advertised Rent: $450
Gross Rental Yield: 12.0%
Newman, a town located in the Pilbara region of Western Australia, boasts high rental yields due to its proximity to some of the largest iron ore mining operations in the country. The town primarily serves as a residential hub for workers employed by nearby mining companies, including those working in the Mount Whaleback mine, one of the largest open-cut iron ore mines in the world. With a steady demand for accommodation from fly-in fly-out (FIFO) workers and transient employees, rental demand in Newman remains strong, keeping vacancy rates low. Additionally, the relatively affordable property prices compared to other parts of Australia mean that investors can secure properties at a lower cost while benefiting from high rental returns. These factors, coupled with the resource-driven economy, make Newman an attractive option for investors seeking high rental yields in a mining-dominated region.
#4. South Hedland, Western Australia
Postcode: 6722
Median House Price: $294,500
Median Weekly Advertised Rent: $700
Gross Rental Yield: 12.4%
South Hedland, located in the Pilbara region of Western Australia, has one of the highest rental yields in the country, largely driven by the area's strong mining and resources sector. As a key residential area for workers in the nearby iron ore and gas industries, South Hedland experiences constant demand for rental properties, particularly from fly-in fly-out (FIFO) workers. The town's proximity to major mining operations and infrastructure projects ensures a steady stream of renters, keeping vacancy rates low and rental prices high. Despite the high rental demand, property prices in South Hedland remain relatively affordable, allowing investors to secure properties at competitive rates while benefiting from strong rental returns. This combination of affordable property prices and consistent rental demand makes South Hedland a lucrative option for property investors seeking high rental yields in a resource-rich region.
#3. Roxby Downs, South Australia
Postcode: 5725
Median House Price: $130,000
Median Weekly Advertised Rent: $310
Gross Rental Yield: 12.4%
Roxby Downs, located in South Australia, is a mining town known for its high rental yields, primarily due to its proximity to the Olympic Dam, one of the largest copper, gold, and uranium mines in the world. The town serves as a key residential area for workers in the mining industry, with a steady influx of both long-term residents and fly-in fly-out (FIFO) workers driving strong demand for rental properties. As a result, vacancy rates remain low, and rental prices are elevated, ensuring strong rental returns for property investors. The relatively low cost of properties in Roxby Downs compared to larger cities, coupled with high demand from the resource sector, makes it an attractive option for investors seeking high rental yields. The town's reliance on the mining industry ensures a stable rental market, even during fluctuations in other sectors.
#2. Moranbah, Queensland
Postcode: 4744
Median House Price: $265,000
Median Weekly Advertised Rent: $700
Gross Rental Yield: 13.7%
Moranbah, located in the Bowen Basin of Queensland, is known for its high rental yields due to the town's strong connection to the coal mining industry. As one of the major mining hubs in Australia, Moranbah attracts a large workforce, including fly-in fly-out (FIFO) workers, who require temporary accommodation near mining operations. This demand, coupled with a relatively low supply of housing, keeps vacancy rates low and pushes rental prices higher. Property prices in Moranbah are also lower than in metropolitan areas, making it an affordable entry point for investors while still providing strong rental returns. The town's reliance on the mining industry ensures consistent rental demand, particularly during peak periods of resource extraction, making Moranbah a lucrative option for investors seeking high rental yields in resource-driven areas.
#1. Baynton, Western Australia
Postcode: 6714
Median House Price: $456,000
Median Weekly Advertised Rent: $1,325
Gross Rental Yield: 15.1%
Baynton, a suburb of Karratha in Western Australia, offers the highest rental yields of 15.1% due to its strategic location in the Pilbara region, home to significant iron ore, oil, and gas industries. The area attracts a large number of fly-in fly-out (FIFO) workers who seek rental accommodations, driving up rental demand. This demand, coupled with a relatively low supply of housing, keeps vacancy rates low, allowing investors to command higher rental prices. Additionally, the development of modern housing estates in Baynton has made it particularly attractive to professionals and families relocating for work, further boosting rental demand. With a combination of affordable property prices and a strong rental market driven by the resource sector, Baynton continues to be a top choice for investors seeking high rental returns in the region.
Conclusion
Australia’s top suburbs for investment based on rental yield are largely concentrated in resource-rich regions, particularly around mining towns in Western Australia and Queensland. These areas consistently offer high rental yields due to strong demand from fly-in fly-out (FIFO) workers and transient populations employed in the mining and resource sectors. Suburbs like South Hedland, Baynton, and Newman in Western Australia, and Moranbah and Collinsville in Queensland, stand out as lucrative options for investors seeking strong rental returns with relatively affordable property prices.
While these high-yielding suburbs offer great potential for consistent rental income, it’s essential for investors to consider factors such as market fluctuations, the sustainability of the local economy, and long-term growth potential. Mining-driven economies can be subject to volatility, so diversifying investments or seeking professional advice may help mitigate risks. Overall, for those looking to capitalise on high rental yields, these mining-based suburbs provide excellent opportunities in Australia’s property market. It is also important to consider other factors besides rental yield, when looking to buy an investment property.
