Keilor Delivers Strongest Rental Returns for Property Investors This Quarter

Keilor posted a gross rental yield of 7.1 percent in the June quarter, outpacing every other postcode tracked by local agents. The figure comes from 142 properties that changed hands or renewed leases between April and June.

Global supply-chain strains and higher borrowing costs have pushed investors toward suburbs where weekly rents cover mortgage payments without heavy reliance on capital growth. Keilor meets that test because its stock of three-bedroom homes sits at price points that still attract families tied to nearby employment hubs.

Properties along Old Calder Highway and within the Keilor Village precinct account for most of the recent leases. The Keilor Community Centre has also drawn new tenants who work at the adjacent light-industrial estates, keeping vacancy rates below three percent for the sixth straight month.

Street-level performance

Median house prices in Keilor reached $685,000 last month, according to settlement records lodged with the state titles office. At that level a three-bedroom home on Green Gully Road commands $480 a week, producing the 7.1 percent yield. Units on Milleara Road averaged $390 weekly, lifting the suburb-wide average above the 6.4 percent recorded in the March quarter.

Council records show 31 investor purchases in the first half of 2026, up from 19 in the same period last year. Most buyers financed through local branches rather than offshore lenders, reducing exposure to interest-rate swings reported in other markets.

Next steps for buyers

Investors considering entry should inspect the six listings currently open on Church Street and Arundel Road before the end of July. Local property managers recommend locking in 12-month leases now while demand from shift workers at the nearby logistics parks remains firm. Updated yield tables will be released again in October.

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.