2021 Half Yearly Property Investor Update

From Roseville to Hornsby I take a look at the rental returns investors are achieving and I take a look at how the recent market growth has affected these figures.

ROSEVILLE

Roseville house investments are on average returning a yield of 2.0% based on the current median house price of $2,698,000. This yield figure seems higher than expected most likely because Roseville has experienced an incredibly low volume of sales this year and very few top end properties have been sold which is keeping the median price relatively low compared to the rest of Ku-ring-gai. Roseville apartments are currently yielding 2.5% for investors based on a current median apartment price of $1,115,000. The 2020 median stood at $1,055,000.  The average price per week for a house to rent in the area is $1,050 and for an apartment it stands at $530. Apartment investors aren’t getting as much rent per week on average from their tenants compared to two years ago (~$70 less). House investors experienced a brief window of strong growth 6 months ago in terms of weekly rent received, but looking at the two-year average rents are down $150 per week.

LINDFIELD

Lindfield house investments are on average returning a yield of 1.95% based on the current median house price of $3,000,000. In 2020 Lindfield median house prices were actually slightly stronger and stood at $3,210,000, but we put this down to there not being enough volume of sales this year, particularly in the top end of the market. Lindfield apartments are currently yielding 2.2% for investors based on a current median apartment price of $1,340,000. The 2020 median stood at $1,252,500.  The average price per week for a house to rent in the area is $1,125 and for an apartment it stands at $560. Looking at the trend over the last few years, house investors are getting a few hundred dollars more on average per week in their pocket than they did two years ago but apartment investors have seen almost no growth in their rental return.

GORDON

Gordon house investments are on average returning a yield of 1.6% based on the current median house price of $3,335,000, however it should be noted that the yield appears so low due to the huge 33% increase in house prices this last 12 months. Gordon was another market which has seen low turnover which can skew these figures. The 2020 median house price in Gordon was $2,515,000. Using last year’s median the house yield would look more like 2.3%. Gordon apartments are currently yielding a solid 2.8% return for investors based on a current median apartment price of $960,000. This time last year the median stood at $868,000. The average price per week for a house to rent in the area is $1,000 and for an apartment it stands at $517. Vacancy rates across the board stand at 5.9%. 

KILLARA

Killara house investments are on average returning a yield of 1.4% based on the current median house price of $4,264,000, however the 2020 median house price in Killara was $3,100,000 so Killara has seen huge capital growth in the housing market in a relatively short period which will skew this yield figure. Using last years median the house rental yield would look more like 1.9%. Killara apartments are currently yielding 3.4% for investors based on a current median apartment price of $945,000. The average price per week for a house to rent in the area is $1,150 and for an apartment it stands at $580. Vacancy rates across the board stand at 5.2% There hasn’t been much change in the weekly take home for house rentals in the past few years.

PYMBLE

Pymble house investments are on average returning a yield of 1.8% based on the current median house price of $3,075,000, however in 2020 the median house price in Pymble was $2,525,000 so once again the yield will be by the impacted by the huge capital growth of 22% that has occurred this year. Pymble apartments are currently yielding 3.0% for investors based on a current median apartment price of $952,000. The figures for apartments haven’t changed much in the last few years. The average price per week for a house to rent in the area is $1050 ($865 in West Pymble) and for an apartment in Pymble it stands at $550. Vacancy rates across the board stand at 3.8%.

ST IVES

St Ives house investments are on average returning a yield of 2.3% based on the current median house price of $2,500,000, up from a median of $2,160,000 in 2020. St Ives apartments are currently yielding 3.2% for investors based on a current median apartment price of $970,000, however median price was higher at the end of 2020 most likely due to higher stock turnover and nothing else. The average price per week for a house to rent in the area is $1,100 and for an apartment it stands at $600.

TURRAMURRA

Turramurra average house investment yields are difficult to report since the underlying data I have examined is quite different from one source to another. We shall say it sits between 1.7% and 2.2% based on the current median house price of $2,912,500, however in 2020 the median house price in Turramurra was much lower at $2,205,000. Turramurra apartments are currently yielding 2.7% for investors based on a current median apartment price of $1,079,000. At the end of 2020 the median apartment price was $935,000. The average price per week for a house to rent in the area is currently $975 per rpdata corelogic, however pricefinder indicated a very different figure at $1,225 and for an apartment per rpdata (pricefinder similar) it stands at $550. Vacancy rates across the board stand at 3.3%. Whichever data we look at, we can certainly ascertain there has been strong capital growth for both apartment and house investors, and in general most house investors should be enjoying solid increases in their weekly take-home income. 

WARRAWEE

Warrawee house investments are returning a yield of 1.5% based on the current median house price of $4,567,500. Noting that this is based off only a small number of high end sales, if we used the 2020 median house price of $2,865,000 as a base the yield would be 2.4%. The average price per week for a house to rent in the area is currently $1,300. Investors are enjoying 20% more take home money each week than they saw 2 years ago and exceptional capital growth, the exact figure difficult to determine based on low volumes but safely we can say at least 25-30% price growth in the last 12 months.

WAHROONGA

Wahroonga house investments are returning a yield of between 2.1% and 2.2% depending on the location in Wahroonga, based on the current median house price of $2,211,500. This years current median is 7.9% up from the 2020 median sales price. Wahroonga apartments are currently yielding 3.1% for investors based on a current median apartment price of $900,000. The average price per week for a house to rent in the area is between $875 and $940 depending on the location within  Wahroonga and for an apartment the average rent investors can command stands at $535. Vacancy rates across the board are approximately 3.4%.

HORNSBY

Hornsby house investments are returning a yield of 2.3% based on the current median house price of $1,535,500. Hornsby apartments are providing their investors with a yield of 3.3% based on a current median apartment price of $662,500. The current average price per week for a house to rent in the area is $670 (3 bedrooms) and for an apartment it stands at $420. Apartment prices in Hornsby haven’t had much growth in the last few years but houses have seen a solid, almost 17% growth in the last 6-12 months.

NB: Data has been sourced from RPData Corelogic and Pricefinder and the most sensible figures chosen which we feel best represent the market and our audience.