Port Melbourne: the suburb with the highest rental yield for investors

Port Melbourne recorded the highest rental yield among local suburbs in the June quarter, reaching 5.9 per cent on median properties.

Global market jitters tied to fresh US strikes in Iran have pushed local buyers toward assets that generate immediate cash flow rather than waiting on capital growth alone.

Steady demand near key local sites

Renters continue to favour units and townhouses within walking distance of Bay Street’s strip of cafes and the Port Melbourne Traders Association events that draw weekly foot traffic. Further south, properties overlooking the Station Pier precinct command similar interest from shift workers tied to port operations.

Two-bedroom units on Liardet Street leased at an average $595 a week through the first half of 2026, according to listings tracked by local agency records. That pace has held even as vacancy rates in comparable waterfront pockets slipped below 2 per cent.

Numbers behind the yield

CoreLogic’s 1 July 2026 release placed the suburb median unit price at $1.24 million. Dividing the annualised rent by that figure produces the 5.9 per cent yield, the highest figure posted in the immediate area for the period.

Three-bedroom houses on Ross Street averaged $780 weekly, lifting overall suburb performance when investors mix stock types. The same dataset showed a 3.2 per cent rise in rents over the prior twelve months while prices remained flat.

Investors looking to enter should review current listings on streets such as Graham Street and contact the Port Melbourne Historical Society for neighbourhood insights before making offers. Checking settlement timelines with local conveyancers remains the practical next step ahead of any spring auction surge.

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.