Keilor Tops Charts as the Suburb With the Highest Rental Yield for Investors

Keilor’s residential property market has vaulted ahead in investor interest, posting the highest rental yields among all local suburbs in the first half of 2026. Figures drawn from recent listings on Keilor Property Exchange and confirmed by the independent analytics firm Urban Metrics show median rental yields in Keilor have surged to 6.1% in June, putting the suburb ahead of rivals like Taylors Lakes and Sydenham.

This spike in yields comes at a critical moment for local landlords. Across Keilor, rental demand has intensified-driven by record low vacancy rates and a steady flow of new residents drawn to the suburb’s strong transport links, including proximity to Keilor Station and the Melton Highway retail precinct. For investors squeezed by rising interest rates and uncertain returns elsewhere, the allure of higher yields provides a compelling argument to buy or hold properties in the area.

Inside Keilor’s Real Estate Performance

Walking down Overland Crescent, evidence of this investor boom is clear. Every second fence holds a ‘For Lease’ or ‘Just Listed’ sign, and local agencies such as NorthWest Realty and Keilor Professionals report waiting lists for popular 3-bedroom townhouses. The draw? Accessibility to the bustling Keilor Village Shopping Centre, leafy recreational areas like Brimbank Park, and respected schooling options at St Augustine’s Primary on Augustine Street, all attracting a stream of tenants willing to pay a premium.

Urban Metrics data offered exclusively to The Daily Keilor showed the median rent for a standard Keilor house was $675 per week as of June 2026, with the median sale price for family homes resting at $575,000. This yield outpaces other neighbouring suburbs, such as Hillside and Delahey, which both reported sub-5% gross rental returns according to last month’s figures. There have been no significant influxes of new apartment construction, so the pressure on available stock remains, feeding into above-average yields.

For potential investors, the question becomes not if, but when to enter the market. Agencies such as Keilor Investment Services have flagged several upcoming off-market listings on unnamed side streets near Green Gully Reserve, expected to attract multiple competing offers. As yields remain high and tenant demand shows no signs of easing, property professionals widely expect this competitive environment to persist through late 2026. Prospective buyers should complete due diligence and factor in ongoing infrastructure upgrades along Old Calder Highway, which may further lift both rents and property values.

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.