Sydney rental yields saw a slight loosening over the year rising from 3.2% to 3.3% and retaining the tightest rental yield crown for another year, according to the latest data from CoreLogic.
Melbourne was a close second at 3.6% but rental yields in Melbourne loosed 0.3% compared to Sydney's 0.1%.
Rents softened over the past month and rental rates increased in all capital cities other than in Sydney and Perth over the past year
Unit rental yields in Sydney have reach 3.9% with the median value of an apartment being just under $700,000, significantly higher than Melbourne where the median value for an apartment is $540,000.
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Regional NSW followed the trend of loosening rental yields as well rising from 4.5% in 2018 to 4.7% this year.
While Sydney and Melbourne are leading the increases in dwelling values, equally they are the two cities leading the recent softening of rental yields.
Tim Lawless noted it was the third successive month of capital gain in Sydney, Melbourne and Hobart and the second successive month of increases in Brisbane.
“While the ‘recovery trend’ is still early, it does appear that growth trends are gathering some pace, particularly in the largest capital cities,” Lawless said.