Essendon's Hidden Gem: The Suburb Commanding Highest Rental Yields

North Essendon has cemented its reputation as the city's top investment hotspot, boasting the highest rental yields for property investors in the latest local analysis. Figures released this week highlight the area stretching from Keilor Road to Hoffmans Road as the most lucrative for landlords seeking strong cashflow on new or existing rental properties.

Why Rental Yields Matter in 2026

With home values shifting and cost of living pressures rising, landlords and aspiring investors are scrutinising every dollar. Maximising rental income has become a priority amid fears of future interest rate rises and ongoing demand from renters priced out of home ownership. In this climate, the search for suburbs showing above-average yields is heating up, and North Essendon is shining.

Median asking rents for two-bedroom apartments along Keilor Road have jumped this year, according to figures drawn from the Essendon Property Monitor. The presence of local hospitality favourites such as St Rose café and Assembly Ground, plus easy access to Lincoln Park and Strathmore North Primary, have only raised the area's desirability. Property managers from local agency Barry Plant Essendon confirm that vacancy rates snapped back below 1.5% in May-the lowest since mid-2022-further fuelling competition among tenants.

The Numbers: North Essendon Leads

CoreLogic data from June 2026 shows North Essendon achieved a gross rental yield of 4.9% for unit investors-the highest of any suburb across the district. Median unit prices in North Essendon rested at approximately $465,000, while median weekly rents surpassed $440. In comparison, central Essendon’s median yield for units trailed at around 4.3%. The combination of relatively affordable purchase prices and robust rent demand has pushed North Essendon to the top of property investors’ lists.

Investors weighing their next move will need to move quickly, agents say, as listings along Salmon Avenue and Rosehill Road are attracting interest from both local and out-of-town buyers. Property analysts advise inspecting properties mid-week to get ahead of weekend crowds and to monitor council announcements around upcoming zoning reviews, which may impact future supply. With local demand unlikely to cool in the near term, North Essendon stands out as the prime destination for investors chasing above-average returns in the months ahead.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.