Inner city rental yields soar

The apartment market has lead the charge in offering the best yields on investment property over the 2008 calendar year.

Rental returns in seven key inner city locations hit between 7% to 9%.

According to RP Data, the highest yielding property in a major city was Sydney’s Woolloomooloo, which averaged a 9.4% return.

Other attractive markets included Burnley in Melbourne (8.2%), Parap in Darwin (7.5%) East Perth (7.1%) and Adelaide’s Evanston (7.1%).