Central Coast Rental Yield | 23/06/2025

The latest Central Coast rental yield results have been released by SQM Research, and the gap between Units and Houses is growing.

We have long argued at Mortgage Choice Central Coast that rental yield is a strong indicator of house price value. Low % rental yields can be an indicator of over-inflated value, especially when rental property vacancy rates are low (indicating demand for rentals is high relative to available stock). The current Central Coast rental vacancy rate is rising, but remains relatively low at 1%.

As you can see from the charts below, the median Central Coast rental yields for houses and units are 2.9% and 4.7%, respectively. This gap is large by historical standards. Median house rental yields have been gradually reducing since 2016, when yields exceeded 4%. Median unit rental yields have been remarkably stable, with yields at the same level as in 2016.

Interestingly, a comparison with the Newcastle/Hunter median rental yield for houses reveals a significantly higher rate at 3.6%. In contrast, the unit median is lower than that of the Central Coast at 4.40%.

Could this indicate that Central Coast unit prices are undervalued and house prices are overinflated? 

Please call us if you would like to discuss your property investment plans.



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