Where Canberra investors are making the most money

New data has revealed the top five suburbs with the biggest rental yields in Canberra. 

According to the Domain Rent Report for the December quarter, purchasing a unit in Mawson is how investors can make the most money. 

The suburb recorded a median weekly asking rent of $500 and had a yield of 6.25 per cent. 

Jonathan Charles of Independent Woden said there is a benefit to purchasing investment properties in the Woden Valley region as a whole. 

“Woden Valley is a good mix of new and old houses spanning different eras, so no matter what you are looking for, you will find it in Woden Valley,” he said. 

“There is also great potential as a secure investment to buy in Woden Valley due to the future growth planned for the area, including the tram line, hospital expansion, new CIT campus and big-name restaurants.

“The location is central, a short drive from the Canberra city centre, there are intersecting main roads improving travel time and it is a very established region, which conveys safety and convenience.”

Holt, in Belconnen, follows Mawson as the second best suburb to invest in for the biggest rental return, as units recorded a median weekly asking rent of $498 and a median gross rental yield of 6.19 per cent. 

Purchasing an investment property in Holt is a good financial choice for reasons other than the rental return, said Steve Lowe of Agent Team Canberra. 

“Holt’s property prices are more affordable than the surrounding suburbs, so there is potential for capital growth as it plays catch up,” he said. 

“When your purchase price is less and you have matched the median weekly rental asking price, your yield is going to be much better as a result.

“Holt is well located in Canberra, it has a couple of ways to get into the city, it’s surrounded by a lot of open space [and] Kippax shops are right nearby as well as playing fields … it’s a good place to invest.”

The Woden Valley suburbs of Chifley and Phillip are also in the top five suburbs for the biggest rental yields in the capital, as their median gross rental yields for units measured at 6.13 percent and 6.01 per cent, respectively. 

The Gungahlin suburb of Crace is the remaining location in Canberra’s top five suburbs for best rental yields, with a median weekly asking rent for units of $495 and a median gross rental yield of 6.04 per cent. 

Crace’s position within the Gungahlin region makes it one of the more desirable suburbs there, with prospective tenants looking in Gungahlin likely to look there first, said Steve Langford of HIVE Property. 

“The suburb is young, none of the properties there are old, and as equity evolved like a ripple effect from the centre out it’s one of the closest suburbs to the city of the Gungahlin region,” he said. 

“Crace has a healthy mix of entry level homes to more extravagant multimillion-dollar homes, and has a healthy mix of investor owned stock.

“In my experience though, renters want modern facilities and proximity, and Crace can offer both.”