High Rental Yield Hotspots in Australia for 2025

Check out Australia’s best property markets for high rental yields in 2025 based on mining, industrial growth and infrastructure development. These areas will deliver.

From Western Australia’s mining towns to Queensland’s coast, each area has its own investment opportunity driven by solid economic fundamentals and growing demand for rentals.

Victoria, South Australia, Tasmania and the Northern Territory also have high yield potential with affordable properties, stable growth and diverse industries supporting rental demand across these areas.

Western Australia’s Mining Towns

Western Australia’s mining towns are the top hotspots for high yield property investments in 2025. These areas, driven by the resources sector, transient workforces and infrastructure growth will deliver great returns to smart investors. Below is a comprehensive guide to the top areas, backed by recent data, major employers and local developments.

Tom Price: Australia’s Highest Rental Yield

Unbeatable Yields and Affordability

Tom Price is the number one for rental yields in Australia with an astonishing 14.6% for houses. With a median house price of $640,000 and weekly rents of $1,800 the town delivers unbeatable returns. For example a 3 bedroom home in the town centre was recently purchased for $650,000 and leased within days for $1,850 per week, achieving a yearly yield of over 14%.

Drivers: Iron Ore and Employment Stability

Located in the Pilbara region, Tom Price benefits from being close to Rio Tinto’s iron ore operations. The company’s many mines and facilities bring in high earning professionals who rent properties for medium to long term stays. Contractors and service providers also support rental demand during off peak seasons.

Community and Infrastructure Development

In 2024 Karijini Drive was upgraded which has improved connectivity to other towns reducing commute times for mine workers. The Tom Price Hospital and recreational facilities also continue to attract families which increases the town’s appeal to long term tenants.

Newman: Affordable Entry with High Returns

Low Cost High Yields

Newman has a great combination of affordability and returns with yields of 12.2% for houses and 13.2% for units. Median house price is $326,000 and weekly rents are $650. For example a 2 bedroom unit in Newman’s East suburb was purchased for $330,000 and is generating $630 per week, achieving a yearly yield of almost 10%.

Mining Giants Driving Local Demand

BHP’s Mount Whaleback mine, one of the biggest open cut iron ore mines in the world, employs thousands of workers who contribute to housing demand. Mining services companies like MACA and Downer Group also use Newman’s rental market to house their employees.

Recent Developments and Market Growth

Newman Airport’s expansion was upgraded in late 2024 to increase fly-in-fly-out (FIFO) capacity for workers, making it easier for companies and further supporting the housing market. The town’s new shopping precinct with national retailers like Woolworths and Target has also improved local amenity and lifestyle making Newman a more attractive rental location.

South Hedland: Port Hedland’s Top Performing Suburb

Export Driven Demand is Stable

South Hedland, part of the Port Hedland area has yields of 11.5% for houses and 14.0% for units. Median house price is $465,000 and weekly rents are $720. For example a 4 bedroom house on Banksia Street is renting for $750 per week and was purchased 6 months ago for $470,000.

Economic Driver: Iron Ore and LNG

As one of the busiest bulk export ports in the world, Port Hedland handles over 520 million tonnes of iron ore each year. Fortescue Metals Group and Roy Hill employ people in the area. Woodside Energy’s LNG facilities also add to the economic base and provide long term rental demand.

Urban Renewal and Growth

The South Hedland Town Square was redeveloped in early 2025 and features modern retail, community parks and event spaces. These amenities have increased the suburb’s liveability and attracted a broader tenant demographic including families and young professionals.

Karratha: Balanced Yields and Strong Demand

Great Returns Across Suburbs

Karratha continues to deliver strong rental returns with yields of 10.8% for houses. Median house price is $630,000 and weekly rents are $1,300. For example a property in Baynton, a popular Karratha suburb was recently leased for $1,350 per week achieving a yield of almost 11%.

LNG and Mining Diversification

Woodside Energy’s Pluto LNG expansion and Rio Tinto’s Dampier Salt operations support Karratha’s economic base. These industries employ a mix of FIFO and local workers so there is consistent demand for high end and affordable rentals.

Infrastructure for Growth

The Karratha Health Campus, a $207 million hospital completed in 2023, has attracted medical professionals and families and diversified the tenant base. Recent upgrades to the North West Coastal Highway have also improved connectivity making Karratha an attractive option for investors.

Kalgoorlie-Boulder: High Yield Properties in a Gold Mining Hub

Gold Driven Yields with Diversification

Kalgoorlie-Boulder has yields of 9.5% plus with median house price of $320,000. For example a property near the Super Pit Gold Mine is renting for $600 per week and achieving a return above 9%.

Multi Sector Employment

Northern Star Resources’ gold mining is the mainstay of the local economy with supporting industries such as rail and nickel mining. Kalgoorlie has a broader employment base than many single industry towns.

Future Growth

Ongoing upgrades to the Goldfields Highway and automation at local mines will keep the economy active. The city’s push for renewable energy projects like wind farms is also attracting new professionals and diversifying rental demand.

High Yield Markets to Invest In

Short Term Returns vs Long Term Risks

While WA’s mining towns offer great rental yields investors must weigh the risks of economic volatility tied to commodity prices. For example towns like Newman and South Hedland experienced price corrections during the iron ore downturns of the past decade.

How to Minimise Risks

Diversify within mining towns by targeting properties with long term leases or located near infrastructure projects. Invest in towns like Karratha which has mining and LNG industries so you’re not dependent on one economic driver.

2025 Outlook

For cash flow investors Tom Price and Newman are the clear winners. But for those looking for balanced growth and stability Karratha and Kalgoorlie-Boulder are the way to go with diversified employment bases.

WA’s mining towns are still a great option for investors in 2025 with high rental yields, affordable prices and economic activity. From Tom Price’s record yields to Kalgoorlie’s gold driven stability these towns show the diversity of opportunities in Australia’s resource rich regions.

Queensland Rental Boom

Queensland is the hot spot for high yield property in 2025 driven by population growth, industrial expansion and infrastructure upgrades. The state’s diverse economy means consistent demand for rental properties and great returns for investors. Here are 5 locations to look at.

Moranbah: Mining Driven Rental Success

Affordable Properties with High Yields

Moranbah is the leader in Queensland’s high yield markets with rental yields of up to 13.5% for houses. Median house price is $380,000 and weekly rents are $980. A 3 bedroom property bought for $385,000 recently rented for $1,000 per week and achieved a return above 13%.

Coal Mining Drives Demand

Located in the Bowen Basin Moranbah is driven by the coal mining industry with companies like BHP Mitsubishi Alliance and Anglo American. The mix of FIFO workers and permanent residents means a steady rental market.

Lifestyle and Infrastructure Upgrades

Moranbah’s revitalized Town Centre has modern dining and retail options. A multi sports facility was added in 2024 to make it more attractive to families and professionals.

Gladstone: Port and Industry Driven Returns

Port Focused Economic Stability

Gladstone has yields of 11.7% for houses with median price of $450,000 and weekly rents of $880. For example a 4 bedroom home bought for $460,000 is renting for $900 per week and achieving over 10% returns.

Industrial Powerhouses Drive the Market

As the home of Australia’s largest multi-commodity port Gladstone is driven by export activity. LNG facilities operated by Santos and Shell drive rental demand, contractors and long term professionals.

Future Proof Infrastructure

The Energy Transition Hub, starting in 2025 will focus on renewable projects, creating jobs and increasing housing demand. Recent airport upgrades will make it more attractive to businesses and workers.

Rockhampton: Regional Centre with Steady Growth

Affordable Entry and High Yields

Rockhampton has yields of 8.9% with a median house price of $340,000 and weekly rents of $580. A property near the CBD bought for $345,000 is renting for $600 per week and achieving strong returns.

Multiple Economic Drivers

The city has a diverse economy with agriculture, education and health. CQUniversity and major hospitals means steady rental demand from students and professionals and makes it more attractive to the market.

Urban Upgrades and Connectivity

The Rockhampton Ring Road completed in 2024 has improved access to industrial areas and surrounding regions. The Riverfront Precinct redevelopment has made the city more livable and has attracted a wider range of tenants.

Bundaberg: Lifestyle and Affordability

High Yields with Low Entry Points

Bundaberg has yields of 9.5% for houses with median price of $350,000 and weekly rents of $640. For example a 3 bedroom home bought for $355,000 is renting for $650 per week and achieving solid returns.

Agriculture Drives Rental Demand

Bundaberg is famous for its sugarcane and rum production, the agricultural industry is the backbone of the city. Seasonal workers and permanent residents means consistent rental demand all year round.

Coastal Lifestyle Appeal

Bundaberg’s proximity to the Coral Coast and affordable living means retirees and young families are attracted to the city. The Bargara Foreshore upgrade has made it even more attractive as a lifestyle destination.

Toowoomba: Inland City with Strong Demand

Demand Across All Sectors

Toowoomba has yields of 8.7% with median price of $375,000 and weekly rents of $620. A 3 bedroom home in the suburbs recently rented for $630 per week and achieving solid returns.

Education and Health are Key Drivers

As a regional education hub Toowoomba has universities and top schools means demand from students and staff. Its established health sector means professionals are attracted to the city and boosts the rental market.

Growing Infrastructure and Connectivity

Toowoomba Wellcamp Airport supports business and tourism and connects the region to national and international markets. The Toowoomba Bypass is now complete and has improved access to Brisbane making it more attractive to investors and tenants.

Queensland Investment Landscape

Queensland’s high yielding locations Moranbah, Gladstone and Rockhampton are set to grow in 2025. Emerging hubs Bundaberg and Toowoomba add to the state’s investment opportunities with diverse industries and strong infrastructure. For investors looking for solid returns Queensland has never been more attractive in the Australian property market.

Victoria’s Hotspots

Victoria is the standout in 2025 with affordability, economic stability and high rental yields. From regional growth hubs to emerging suburban markets the state has plenty of opportunities for investors. Here are five hotspots delivering strong returns and consistent demand.

Geelong: Regional Leader in Yields

Solid Returns in a Growing Market

Geelong has yields of 8.5% with median price of $720,000 and weekly rents of $1,180. A 4 bedroom home in Newtown recently rented for $1,200 per week and achieving 8.6% returns.

Diverse Economy Means Demand

As Victoria’s second city Geelong has health, education and advanced manufacturing industries. Deakin University and major employers like Barwon Health means a steady stream of tenants.

Infrastructure is Growing

Avalon Airport and Geelong Port are expanding and creating jobs. The Geelong Fast Rail project will cut travel time to Melbourne making it more attractive to commuters.

Ballarat: Affordable and High Yields

Solid Returns in a Growth Hub

Ballarat has yields of 7.9% for houses with a median price of $580,000 and weekly rents of $880. For example a 3 bedroom home in Wendouree purchased for $585,000 is renting for $890 per week and delivering solid returns.

Growing Economy with Heritage Charm

Ballarat has history and modern growth industries like renewable energy and technology. The Federation University campus and Sovereign Hill tourism hub means rental demand from diverse demographics.

Connectivity and Urban Development

The Ballarat Line Upgrade is now complete and has improved train services making it more attractive to Melbourne commuters. The GovHub precinct has also created jobs and is attracting more long term tenants.

Bendigo: Regional Gem

Solid Yields and Affordable Entry

Bendigo has yields of 7.5% with median price of $510,000 and weekly rents of $740. A 3 bedroom home in Eaglehawk purchased recently for $520,000 is renting for $750 per week and delivering solid returns.

Diverse Economy

The city has mining, education and health industries. Bendigo Health, La Trobe University and local mining operations means consistent tenant demand across all demographics.

Infrastructure Development

The Bendigo Airport redevelopment has improved regional connectivity and the Bendigo Base Hospital upgrade will continue to drive economic growth. Both of these projects make Bendigo a safe bet for investors.

Werribee: Suburban Growth

High Yields in Melbourne’s Growth Strip

Werribee has yields of 6.9% with median price of $650,000 and weekly rents of $870. A 4 bedroom home in Harpley recently rented for $880 per week and delivering solid returns.

Family Friendly Demand

Located in Melbourne’s western growth corridor Werribee is popular with families and young professionals. Werribee Zoo and Pacific Werribee shopping complex makes it a lifestyle hub.

Transport and Development

Werribee is close to the Regional Rail Link and West Gate Freeway making it easy to get to Melbourne CBD. Future development of the East Werribee employment precinct will drive more growth.

Shepparton: Affordable and Returns

High Yields and Low Prices

Shepparton has yields of 8.3% for houses with median price of $450,000 and weekly rents of $710. A 3 bedroom home in Kialla purchased for $460,000 is renting for $720 per week and delivering strong returns.

Agriculture and Industry

Shepparton has agriculture, food processing and logistics industries with employers like SPC and Tatura Milk Industries driving the local economy. Seasonal workers and permanent residents means consistent tenant demand.

Infrastructure

The Goulburn Valley Highway upgrade is complete and has improved connectivity, attracting businesses and making Shepparton an even more attractive regional investment opportunity. The Shepparton Art Museum adds to the cultural appeal and brings in diverse tenant demographics.

Victoria’s Investment Scene

Victoria’s high yield markets like Geelong, Ballarat and Bendigo are still attracting investors with their yields and infrastructure growth. Suburban areas like Werribee and Shepparton are emerging as new options. With affordability and demand, Victoria is a great option for yield focused investors.

South Australia’s High Yield Investments

South Australia has a stable economy and affordable property market and is a great place to invest in 2025. From metropolitan suburbs to regional towns these areas offer a mix of affordability and demand. Here are 5 hotspots to invest in.

Adelaide’s Northern Suburbs: Affordable Yields

Solid Returns and Low Entry

Adelaide’s northern suburbs like Elizabeth North have yields up to 7.5% with median price of $320,000 and weekly rents of $460. A 3 bedroom home recently purchased for $325,000 is renting for $470 per week.

Manufacturing and Defence Industry

The northern suburbs have economic activity driven by defence projects at the Edinburgh RAAF Base and manufacturing facilities like the old Holden site which is now a technology hub.

Infrastructure Driving Demand

The Northern Connector project is under construction and will improve access to Adelaide CBD. New retail developments in Elizabeth and Munno Para will attract tenants and provide long term rental stability.

Port Augusta: Regional Hotspot with High Yields

Affordable and Strong Returns

Port Augusta has yields of 9.0% with median price of $270,000 and weekly rents of $470. A 3 bedroom home recently purchased for $275,000 is delivering 9.1% returns.

Booming Energy Sector

Port Augusta is South Australia’s renewable energy hub and has a transient workforce from wind and solar farm projects. These projects means consistent tenant demand.

Improved Transport Links

The Augusta Highway upgrade is complete and has reduced travel times to Adelaide. Local amenities like the Port Augusta Hospital also provides long term tenant demand.

Whyalla: Steel City Security

High Yields in an Industrial Town

Whyalla has yields of 8.8% with median price of $295,000 and weekly rents of $500. A 4 bedroom home recently purchased is renting for $510 per week and delivering strong returns.

Industrial Base Driving Demand

Whyalla has its steelworks operated by Liberty Steel and emerging industries like hydrogen energy projects. These sectors will create consistent demand for rental properties.

Community and Lifestyle Improvements

The Whyalla Foreshore redevelopment and new leisure facilities makes the city more attractive to families and long term tenants and diversifies the rental market.

Mount Gambier: Industry and Lifestyle

Balanced Yields and Growth

Mount Gambier has yields of 7.2% with median price of $320,000 and weekly rents of $450. A 3 bedroom home in the city centre is renting for $460 per week and delivering solid returns.

Forestry and Agriculture Driving Demand

Mount Gambier is the Limestone Coast’s economic hub and has forestry, agriculture and tourism industries. Employers like Borg Manufacturing brings in a steady stream of tenants.

Infrastructure and Community Growth

The city has upgrades to the Mount Gambier Airport and healthcare facilities which improves connectivity and liveability. These developments makes it more attractive to investors.

Roxby Downs: Mining Town Yields

High Returns in a Hot Market

Roxby Downs has yields of 10.5% with median price of $390,000 and weekly rents of $790. A 3 bedroom home purchased for $400,000 is delivering strong annual returns.

Mining Industry Driven Demand

Roxby Downs is home to the Olympic Dam mine operated by BHP and has a highly paid workforce that requires rental accommodation. The transient nature of the workforce means consistent demand.

Local Amenities Supporting Growth

The town has high standard schools, medical facilities and leisure amenities which makes it a popular choice for families and professionals and increases its long term investment appeal.

South Australia Rental Opportunities

South Australia’s high yield markets from Adelaide’s northern suburbs to regional hubs like Whyalla and Mount Gambier offers a mix of affordability and demand. With infrastructure development and diversified economies these locations are a great opportunity for rental yield focused investors.

Tasmania’s High Yield Investments

Tasmania is attracting investors with affordable properties and rising demand. From regional hotspots to urban hubs the state has strong opportunities for high yields in 2025. Here are five locations delivering high returns.

Hobart’s Northern Suburbs: Growth

Affordable and Rising Yields

Hobart’s northern suburbs like Glenorchy has yields of 6.8% with median price of $490,000 and weekly rents of $640. A property purchased for $495,000 is renting for $650 per week.

High Demand

Glenorchy has strong demand due to its proximity to Hobart CBD and the Royal Hobart Hospital and attracts healthcare workers and young professionals who prefer suburban living.

Transport and Infrastructure Growth

The Bridgewater Bridge upgrade due to be completed late 2024 will improve connectivity to the northern suburbs and make them more attractive to tenants and investors.

Launceston: Regional Centre with Demand

High Returns and Economic Activity

Launceston has yields of 7.2% with median price of $450,000 and weekly rents of $610. A 3 bedroom home purchased for $455,000 is delivering 7.2% returns.

Education and Tourism Driving Demand

Home to the University of Tasmania’s Inveresk Campus and a growing tourism industry Launceston attracts students and professionals and has consistent rental demand.

Lifestyle Improvements

Recent upgrades to Launceston Airport and the redevelopment of the Seaport precinct has improved the city’s liveability and makes it more attractive to long term tenants.

Devonport: Growing Port City

High Yields in a Key Location

Devonport has yields of 7.5% with median price of $400,000 and weekly rents of $580. A property purchased recently is renting for $590 per week.

Economic Activity Driving Demand

The Spirit of Tasmania ferry operations and nearby food processing industries provides a stable employment base and consistent rental demand in this port city.

Urban Renewal Projects

Devonport’s Living City project has revitalised the CBD with new retail and community spaces and makes the city more attractive to families and young professionals.

Burnie: Industrial and Coastal

Balanced Yields and Economic Stability

Burnie has yields of 7.0% with median price of $410,000 and weekly rents of $560. A 3 bedroom home purchased for $415,000 is renting for $570 per week.

Industrial Growth Driving Demand

As an industrial hub Burnie has industries like forestry, manufacturing and logistics and has a stable rental market for long term investors.

Community and Lifestyle Improvements

Upgrades to the Burnie Arts and Function Centre and the foreshore precinct has made the city more attractive to tenants and investors.

New Norfolk: Affordable Investment

Rising Yields in a Beautiful Town

New Norfolk has yields of 7.8% with median price of $350,000 and weekly rents of $520. A property purchased for $355,000 is renting for $530 per week.

Tourism and Heritage attracts Tenants

Located in the Derwent Valley, New Norfolk has Hobart and its reputation as a tourism hub and attracts seasonal and long term renters.

Infrastructure and Accessibility

Recent upgrades to the Lyell Highway has improved access to Hobart and makes New Norfolk more attractive to professionals who commute to the city.

Tasmania’s Investment Opportunities

From Hobart’s northern suburbs to regional centres like Launceston and Devonport Tasmania has plenty of high yielding investment options. Affordability, rising demand and infrastructure development makes Tasmania the smart investment choice for 2025.

Northern Territory: High Yield Investment

Northern Territory has high yielding investment opportunities. From Darwin’s urban centre to regional resource hubs the Territory has a strong economy and consistent tenant demand. Here are five locations with promising returns in 2025.

Darwin: Urban Centre with Rising Yields

Strong Returns with Economic Activity

Darwin has yields of 6.5% with median price of $620,000 and weekly rents of $780. A 3 bedroom property purchased for $625,000 is renting for $800 per week.

Government and Defence

Darwin’s economy is driven by its government and defence presence and attracts a stable tenant base of professionals and defence personnel.

Infrastructure and Lifestyle Improvements

Recent developments such as the Darwin Waterfront Precinct and the Northern Territory Regional Roads Program has improved connectivity and living standards and increased rental demand.

Palmerston: Suburban Growth at a Lower Cost

Higher Yields at Lower Price

Palmerston has yields of 7.2% with median price of $500,000 and weekly rents of $700. A property purchased for $505,000 is renting for $710 per week.

Families and Professionals

Palmerston is known for its family friendly atmosphere and attracts tenants with its modern schools, parks and proximity to Darwin CBD.

Community focussed developments

Upgrades to the Gateway Shopping Centre and local schools has made Palmerston more attractive and a reliable investment for 2025.

Katherine: Regional Centre with High Demand

Strong Yields and Economic Stability

Katherine has yields of 8.1% with median price of $420,000 and weekly rents of $650. A property purchased for $425,000 is renting for $660 per week.

Mining and Defence

As a service hub for nearby mines and RAAF Base Tindal Katherine attracts a diverse tenant base of professionals and contractors.

Tourism driven demand

With natural attractions like Nitmiluk Gorge Katherine has a growing tourism industry and supports both seasonal and long term rental demand.

Nhulunbuy: Remote High Yield Market

Unique investment opportunity in a mining town

Nhulunbuy has yields of 9.0% with median price of $400,000 and weekly rents of $700. A property purchased for $405,000 is renting for $710 per week.

Mining driven economy

The Gove Peninsula bauxite mine ensures a steady flow of workers to the town despite its remote location.

Infrastructure and connectivity upgrades

Recent upgrades to local roads and telecommunications has improved tenant access and lifestyle and made the town more attractive to investors.

Alice Springs: Central hub with steady yields

Balanced yields and location

Alice Springs has yields of 7.0% with median price of $480,000 and weekly rents of $650. A property purchased for $485,000 is renting for $660 per week.

Tourism and Indigenous businesses

Tourism and indigenous led businesses is driving the economy of Alice Springs and attracts a mix of tenants including hospitality workers and professionals.

Community upgrades

Upgrades to the Alice Springs Hospital and public facilities is increasing the livability of the town and ensuring consistent rental demand.

Northern Territory: A rising investment opportunity

From urban centres like Darwin and Palmerston to regional towns like Katherine and Nhulunbuy the Northern Territory has high yield opportunities for 2025. With strong drivers, affordable entry points and growing infrastructure the Territory is an attractive option for investors looking for steady returns.

Originally Published: https://www.starinvestment.com.au/high-rental-yields-australia-2025/