Rental yield represents the annual rental income as a percentage of the property’s value. Determining a ‘good’ yield is complex and varies significantly across Melbourne’s diverse suburbs, as of December 2025.
Currently in Melbourne, and particularly within the Eastern Suburbs – Fletchers’ core area encompassing suburbs like Balwyn, Doncaster, and Ringwood – yields typically range from 2.5% to 4.0%. However, this isn’t a fixed benchmark. Factors influencing yield include property type (houses generally yield less than apartments), location (proximity to schools and transport favours higher rents), and property condition. In 2026, we anticipate continued moderate growth in property values (forecast 3-6%), which will naturally impact yield percentages. Sellers considering investment potential should realise that a lower yield can still represent a strong return if capital growth is substantial. When preparing a property for sale, presentation is key – light-filled spaces and renovation potential are highly favoured by buyers, potentially increasing both sale price and future rental income. A comprehensive property appraisal from Fletchers will consider these nuances and provide a realistic assessment. Marketing campaigns in 2026 typically cost between $3,000 and $8,000, and a standard sales process runs for 4-6 weeks.
Understanding rental yield is one component of assessing a property’s overall investment value, and Fletchers’ local expertise helps sellers navigate these considerations.