Where the Highest Yields Are

While rents are continuing to rise in capital cities, it is regional Australia that is securing the highest rental yields.

New analysis from Cotality shows that Regional Northern Territory has the strongest rental yield as of January 2026 at 7.9%.

It is followed by Darwin, the only capital city market to make it into the top five, with a yield of 6.2%.

Regional Western Australia is next (5.5%), Regional South Australia (4.5%) and then Regional Victoria (4.2%).

Cotality Research Director Tim Lawless says, despite the ongoing rise in rental values, gross rental yields have held reasonably firm since the beginning of 2023.

He says the rental markets remain extremely tight across most of Australia, with vacancy rates up slightly in December, from 1.5% to 1.6%.

Lawless says the slight increase is more likely as a result of seasonal factors rather than any real loosening of rental conditions.

Nationally, rents are up 5.2% in the past 12 months, compared to 4.8% in 2024.

Lawless believes even with a slight increase in vacancy rates, rents will likely rise further in 2026.

Regional Western Australia had the largest increase in rents in 2025 – up by 10.1%, followed by Darwin, which is up by 8.2%.