Melbourne CBD Rental Shock: Record 5.8% Yields
Melbourne CBD rents are surging: 5.8% gross yields, 0.9% vacancy, and 15% YoY rent growth for two‑bed units. Investor returns are at multi‑year highs, driving strong demand and tenancy stability. Investors who act now can lock in premium rents with minimal downtime.
Melbourne CBD Apartment Market – Record‑Setting Surge in Rental Yields
The market is delivering the strongest investor returns in the city’s recent history: a gross yield of 5.8 %, a vacancy rate of 0.9 %, and a 15 % jump in average weekly rent for two‑bedroom units.
Key Metrics (March 2025)
IndicatorValueGross Rental Yield5.8 % (multi‑year high)Vacancy Rate0.9 % (near‑full occupancy)Avg. Weekly Rent (2‑bed)↑ 15 % YoYLandlord‑Friendly RatingSub‑2 % vacancy, record rents
“Melbourne’s rental market remains landlord‑friendly, with sub‑2 % vacancy and unit rents at record highs; however, affordability pressures are slowing the pace of growth.” – Domain, Rental Report, March 2025.
Why Now Is the Optimal Time to Invest
- Maximise Income – Capture premium rents without prolonged vacancy gaps.
- Mitigate Turnover – High‑calibre tenants attracted by competitive pricing and quality upgrades.
- Capitalize on Demand – Benefit from strong migration flows and returning student populations, securing long‑term leases.
Bottom Line
The Melbourne CBD apartment market offers an investment landscape defined by record yields, ultra‑low vacancies, and robust rent growth. Property owners who act today can lock in high returns and achieve lasting tenancy stability.
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