Values Down 5.2%, Rents Up 5.5% — Why Yields Are Rising

Australian home values have fallen 5.2% from their March peak, but rents are rising 5.5% year on year. That widening gap is lifting gross yields and creating a more attractive entry point for investors who buy well. • National home values fell 1.1% in September — the sixth monthly fall in a row. • Typical asking rent rose from $640 to $675 a week, up 5.5%. • The cheapest 10% of rentals rose almost 8%, while the top 10% stood still. • Vacancy is 2% nationally, still well below the pre-COVID decade average of 3.3%. • Gross yield on a typical home rose to 4.3%, from 4.1% a year ago. • West Tamworth rents rose from $380 to $460, while St Kilda unit yields are above 6%. What this means for you: values and rents are moving in opposite directions, but Australia is not one property market. The state, suburb and street you choose can materially change your long-term compounding results, which is why professional research and a buyers agent matter. Download our no-cost Top Five Markets Report 2026 → https://ripe.house/brief Subscribe to Ripehouse Advisory for more data-led Australian property analysis. #AustralianProperty #PropertyInvesting #RentalYields #BuyersAgent This video is general information only and not financial or investment advice. Consider your own circumstances and seek professional advice.

Home values just fell for the sixth month in a row and rents went up 5.5 percent. Both of those are true. Today, Friday the 2nd of October, this is your morning brief. Values are now 5.2 percent below their March peak. That's Cotelli's number out yesterday, but look at rents. In our own data, the typical asking rent on a new lease is $675 a week. The same four weeks last year, it's $640. That's up 5.5 percent and it's just, not just the middle of the rental market, the cheapest 10 percent of rentals, the bottom end of the market is up almost 8 percent. Only the top sector, the top decile, the top 10 percent of rental properties stood still. So the price you pay is softening, the rent you collect is definitely not. For an investor buying well, that gap is the actual story. So today, stick around, we've got six fresh numbers from outside our business, values, vacancy, sales, building approvals, credit, and the rest of the world. I'll check everyone against what we're seeing on the ground and stay to the end because we've got two suburbs in our top one percent from the Ripe House R score. One's a $430,000 country town, one a $540,000 beachside suburb. We'll go street to street as always. And quick note, this is general information only, not personal advice. Number one, we've got home values. Crotality says national home values fell 1.1 percent in September, that's six monthly falls in a row. Brisbane fell the most, down 1.5 percent, Sydney down 1.4, Darwin was the only capital to rise. No real surprises there based on all of the headlines we've been seeing. The on the ground check though, we looked at the actual sales, the full four weeks to the 31st of August, sorry, the 30th of August, sorry, from the end of August to the end of September against the same four weeks last year and New South Wales, the median fell 4.2 percent. In WA as an example, very different to that, contrastingly, it rose almost 10 percent. And that lines up with what Crotality is also saying, Sydney down 7 percent, Perth up 10 percent. This is a reminder to us that it is not one market. The country has split into two and which half of the market, if you can divide it equally, you buy in changes your wealth results, not just in the short term but longer term with the eighth wonder of the world, compounding interest. I'm not calling the bottom, nobody can, but falling values plus rising rents is a better entry point than the reverse. Number two, rentals. Crotality says the national rental vacancy rate rose to 2 percent in September, that's up from a record low of 1.5 percent in February. And that might sound like a little warning or, you know, an alarm bell but there is context that we need to look at. The average for a decade before COVID was 3.3 percent. 2 percent vacancy rate is still extremely tight. Hobart, our loosest capital, is at 3 percent. Adelaide, our tightest at 1.4. Our on the ground check, the reality check, across the suburbs that we track with reliable rental data, that means they have a liquid rental market. The typical rate that we are seeing in vacancies is 2.2 percent, just a little bit more than cotality, and a year ago it was 2.1 percent, so it's barely moved. By state, we have South Australia at 1.5, WA at 1.6, New South Wales a little bit higher at 2.7, Victoria 2.6. And rents, cotality has them up 5.5 percent year on year, our asking rent is up 5.5 percent too, so we've got agreement there. Two different methods, same answer. For an investor,