What is a Good ROI for Rental Property in Australia with Average Returns and Benchmarks
Understanding Good ROI for Rental Property A good ROI for rental property in Australia typically ranges from 3% to 7%, with significant variations depending on location, property type, and prevailing market conditions. Investors need to know rental yield benchmarks to make informed decisions on purchase price, monthly rent and ongoing expenses. Australian capital cities are different in 2025. Regional areas outperform capital cities for gross yield while capitals have stronger growth. What is a Good ROI for Rental Property Industry Benchmarks Australia’s national average rental yield is 3.56% (5 year average), current gross yield is 5.04% in Q1 2025. But performance varies greatly by location and property type. These cap rate benchmarks help real estate professionals value the market and potential returns. ROI Range Performance Level Typical Scenario Below 3% Poor High-value cities, overpriced properties 3% – 5% Good Major capitals, balanced markets 5% – 7% Great Growing locations, str...