Toorak Tops Local List for Rental Yields, Drawing Eyes of Savvy Property Investors

Toorak has surged to the front of the pack for rental returns this quarter, with exclusive figures showing the leafy suburb now hosts the highest gross rental yield for property investors anywhere in the city.

The latest snapshot from Pallas Research, released July 8, puts Toorak’s average yield at 4.7% as of June-up from 3.9% last winter and nudging it ahead of Southport and Glen Iris for the first time in over a decade. Agents point to the combination of surging tenant demand, limited new supply, and a recent uptick in off-plan apartment completions as the decisive factors.

Surging Demand Meets Tight Supply on Toorak’s Iconic Streets

On tree-lined Clendon Road and along the bustling Toorak Village precinct, open-for-inspections have seen double the attendee numbers compared to last year. High-end lettings, including renovated Art Deco blocks managed by Fletchers Toorak and new offerings from Salta’s Alexandra Residences, are being snapped up in under 10 days on market-half the citywide average. The pressure isn’t just on trophy homes: entry-level two-bedroom units on Mathoura Road are fetching rent rises of up to 9% year-on-year, according to November Properties’ rental tracker.

The trend has been intensified by the return of overseas students and executives, with Loreto Mandeville Hall’s international cohort and local hospital staff providing a steady pipeline of high-quality tenants. Rental listings across Toorak have halved since last July, said data from RealestateView, with only 114 homes and apartments advertised last week across the entire suburb. One-bedroom units, especially those within easy stroll of the Kooyong lawn tennis club, recorded rent increases for the fifth consecutive quarter.

Rising Yields and Investor Takeaways

For investors, the numbers are hard to ignore: Pallas Research’s published median weekly rent for Toorak reached $885 for apartments in June, while median buy-in prices held steady at $980,000 for older-style stock. Factoring in modest renovation costs, gross rental yields reached a suburb average of 4.7%-and some blocks on Grange Road hit 5.1%. Only three other city suburbs saw yields above 4.2% this quarter, underscoring Toorak’s appeal as a relatively stable, premium option in a volatile national market. Local conveyancing firms such as Rider Levett Bucknall reported a 22% jump in new investor settlements versus the same time last year.

The sharp rise in yields comes as news with international impact continues to unsettle global markets. Property managers such as The Toorak Group note renewed interest from European and US-based buyers seeking currency-stable, income-generating holdings. While local political tensions and overseas volatility have driven some to safe havens, the consistency of Toorak’s rental returns has made it a standout.

Investors eyeing the area are advised to act swiftly and target streets like Ross Street or Washington Street, where recent major refurbishments have driven strong tenant interest. Property professionals expect ongoing low vacancy rates throughout 2026, though further regulatory tightening on investors could push more stock onto the rental market before the close of the year. For those ready to act, Toorak’s combination of prestige, resilience, and now, yield, is hard to match in the current climate.

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.