The Australian suburbs delivering the highest apartment investment returns revealed

Apartments are delivering stronger yields in five times as many suburbs as houses around the country’s capital city markets. Aussie property investors chasing strong returns have a new road map, with apartments delivering stronger yields in five times as many suburbs as houses. The August 2026 Rise and Rise of Apartments report from Nuestar and Hotspotting revealed that in Australia’s capital city markets, there were 242 suburb markets where units had yields of 5 per cent or higher compared with just 47 house markets. Despite being one of Australia’s more expensive cities, Greater Sydney had the highest number of high-performing apartment markets. Nuestar founder Michael Wilkins says overwhelmingly. yields for apartment markets are higher than those for freestanding houses. Picture: Supplied Nuestar founder Michael Wilkins said that changes to investment property taxes meant new apartments were in the sights of investors more than ever because of the significantly higher rental returns. “Overwhelmingly yields for apartment markets are higher than those for freestanding houses,” he said. “In this climate investors need to secure positively-geared assets. “Apartments in particular of...