Rental yields dive in parts of Australia

Rental markets in parts of Australia witnessed volatile times recently with yields taking a dive in some areas as capital gains outpaced rental growth according to RP Data's research analyst Cameron Kusher.

Mr Kusher confirmed that one of the biggest surprise falls in rents was in the resource-rich mining town of Collinsville in North Queensland, where housing yields fell by 2.4% from a yield of 9.1% last year to now record 6.7%. Garden Suburb in Newcastle followed with a fall in its yield of 2.3%; an additional 18 suburbs also experienced similar falls.

For units, Cromer in NSW had the greatest decline with a fall of 2.5%, followed by South West Rocks which fell by 2.3% fall and a fall of 2.1% for the inner city northern Sydney suburb of Greenwich; 17 other areas also experienced a drop.