Real estate agents are reporting greater interest by investors for homes in regional Victoria, according to the Real Estate Institute of Victoria (REIV).
New data from the real estate association reveals that rental vacancy rates across the state are stable or falling, and that regional markets are offering healthy yields of up to 5.4%.
The highest rental yields in the year to September were recorded by three-bedroom houses in Sale and Ballarat East, at 5.4%. This was followed by three-bedroom houses in Echuca (5.3%) and three-bedroom homes in Drouin and Alfredton, which returned gross rental yields of 5%.
The top areas for rental growth for the 12 months to September were Wendouree, Mildura, Echuca, Alfredton, Corio and Kyneton – all for three-bedroom homes.
Across the state, one-bedroom units returned the highest gross rental yield with 5.5%, while the return for two-bedroom units was 5.3% and three-bedroom units returned 5.2%. This compared with 5.1% for two-bedroom houses and 5% for three-bedroom houses.
However, Enzo Raimondo, chief executive of REIV, said that despite the healthy growth in regional investment, it does tend to vary significantly across the state.
“Although property investment in regional Victoria can offer healthy returns, local factors such as employment opportunities play a role and this varies across the state.”