Short Summary
The Q1 update confirms that opportunity exists for those who look beyond the headlines. Whether it is the cash flow of Broken Hill or the inventory shortage in Durack, HTAG Analytics provides the property data required to make confident decisions.
Data Source: HTAG Analytics Dex™ GeoDex™ Modules. All metrics current as of Q1 update.
New: the framework behind this list
This article publishes the ranked Top 10. For the underlying 4-stage screen — yield, vacancy, IRSAD and supply — used to filter 5,003 Australian suburbs down to the high-yield population, see How to Identify High-Yield Suburbs in Australia: The 4-Stage HtAG Framework.
In the current property cycle, the most successful investors are those who can distinguish between a “cheap town” and a “structural growth market.” At HTAG Analytics, we don’t rely on hotspots; we rely on comprehensive property data.
For this Q1 Update, we ran our proprietary predictive analytics algorithms across regional Australia. The result is a list of 10 suburbs that aren’t just delivering high rental yields (5% to 8%) but also score highly on our Weighted Score index—a composite metric that accounts for growth momentum, inventory pressure, and infrastructure spending.
Below are the top 10 high-yield suburbs, ranked by their HTAG Weighted Score.
1. Durack, NT 0830
HTAG Weighted Score: 1922 (Highest in National Ranking)
- Typical Price: $678,363
- Gross Yield: 5%
- Weekly Rent: $670
- Growth Cycle: (+) Increasing
The Data-Driven Insight:
Durack is the clear leader in our analysis with a massive weighted score of 1922. While the 5% yield is attractive, the standout metric here is the Inventory level of 0.50. In our models, inventory below 1.0 indicates a critical undersupply.
With weekly rents sitting at $670 (the highest in our top 10), Durack offers a cash-flow-heavy profile backed by a 43% capital growth over the last 10 years. Our “Increasing” growth cycle flag suggests this market has not yet hit its peak, offering runway for investors.
2. Grafton, NSW 2460
HTAG Weighted Score: 1663
- Typical Price: $534,040
- Gross Yield: 5%
- Vacancy Rate: 1%
- 10-Year Growth: 91%
The Consistency Play:
Grafton scores 1663, driven by excellent long-term performance (91% growth over a decade). The key metric for investors here is the Vacancy Rate of 1%.
Predictive analytics indicates that when vacancy remains this tight alongside an affordable entry price ($534k), rental pressure intensifies. With a “Low Risk” designation in our dataset and a Sales Ratio that supports liquidity, Grafton is a balanced “growth and yield” asset.
3. Broken Hill, NSW 2880
HTAG Weighted Score: 1617
- Typical Price: $247,598
- Gross Yield: 8%
- Affordability Index: 14.36 (Best in Class)
- Cycle: (+) Peak
The Cash Flow King:
If your portfolio needs immediate income, Broken Hill is the outlier. It delivers a massive 8% gross yield—the highest on this list.
Our data highlights an Affordability Index of 14.36, making it incredibly accessible. However, investors should note the Inventory level of 1.12 and the “Peak” cycle classification. This indicates that Broken Hill is currently a pure yield play rather than a capital growth sprinter, ideal for positive gearing strategies.
4. Stratford, VIC 3862
HTAG Weighted Score: 1590
- Typical Price: $549,513
- Gross Yield: 5%
- 10-Year Growth: 104%
- Infra Spend: $1,539 per capita
The Growth Heavyweight:
Stratford boasts the highest long-term appreciation in our top 10, with 104% growth over the last decade.
Despite recent price cooling, HTAG’s models flag this as an “Increasing” market. The driver? Infrastructure spending of $1,539 per capita, which is significantly higher than many metro suburbs. This level of government investment is a leading indicator for sustained property values.
5. Benalla, VIC 3672
HTAG Weighted Score: 1510
- Typical Price: $481,599
- Gross Yield: 5%
- Volatility Index: 5 (Low)
- Infra Spend: $1,736 per capita
Stability Meets Opportunity:
Benalla is defined by its stability. With a Volatility Index of just 5, it offers a smoother ride than mining towns.
However, it’s not stagnant. The $1,736 infrastructure spend is a standout data point, suggesting significant regional development. Combined with a 5% yield and an “Increasing” market cycle, Benalla represents a safe harbor for risk-averse investors seeking regional exposure.
6. Warrnambool, VIC 3280
HTAG Weighted Score: 1506
- Typical Price: $611,335
- Gross Yield: 5%
- Weekly Rent: $540
- Inventory: 1.22
The Blue-Chip Regional:
Warrnambool is a larger market with a robust rental price of $540 per week. While the inventory levels (1.22) are slightly looser than Durack, the market remains in an “Increasing” phase.
Our property data shows a 37% growth over 5 years, indicating consistent performance. It is a volume market where liquidity (Sales Ratio) is reliable, allowing for easier exit strategies than smaller towns.
7. Morwell, VIC 3840
HTAG Weighted Score: 1448
- Typical Price: $411,600
- Gross Yield: 5%
- 12-Month Growth: 12%
- 10-Year Growth: 132%
The Momentum Play:
Morwell is moving fast. It recorded 12% growth in the last year alone and a staggering 132% over 10 years.
While our models currently classify it as a “Peak” market, the Infrastructure Spend of $2,085 is the second-highest on this list. This suggests that while prices have risen, the government is pouring money into the region, potentially establishing a new price floor.
8. Bairnsdale, VIC 3875
HTAG Weighted Score: 1439
- Typical Price: $469,322
- Gross Yield: 5%
- Days on Market (DoM): 62
- Cycle: (-) Increasing
The Buyer’s Opportunity:
Bairnsdale presents a tactical opportunity. With Days on Market (DoM) sitting at 62, properties are lingering slightly longer than in Grafton or Durack.
For a savvy investor, this data point implies negotiating power. Despite the slower pace, the market is still flagged as “Increasing,” and the 5% yield provides holding income while you wait for the next upswing.
9. Inverell, NSW 2360
HTAG Weighted Score: 1427
- Typical Price: $410,546
- Gross Yield: 5%
- Infra Spend: $2,282 (Highest on List)
- Cycle: (+) Decreasing
The Infrastructure Leader:
Inverell is the data standout for one massive reason: $2,282 per capita in infrastructure spending. This is the highest figure in our top 10.
Although the growth cycle is currently “Decreasing” (suggesting price growth is cooling), this high level of investment is a strong predictor of future resilience. Investors buying now are securing a 5% yield in a town that is being heavily upgraded.
10. Wonthaggi, VIC 3995
HTAG Weighted Score: 1206
- Typical Price: $503,334
- Gross Yield: 5%
- 12-Month Growth: -3%
- Inventory: 1.66
The Counter-Cyclical Play:
Wonthaggi rounds out the top 10. Our data shows a recent price dip (-3% over 1 year), which often scares off retail buyers.
However, predictive analytics looks at the long term: 87% growth over 10 years. For value investors, this dip represents a potential entry point into a proven market, supported by a solid 5% yield while inventory levels stabilise.
HTAG Analytics: Decoding the Commonalities
When we analyze the dataset of these top 10 suburbs, three key data-driven commonalities emerge that generate high scores in our algorithms:
1. The 5% Yield Floor
Every suburb on this list delivers a minimum Gross Yield of 5% (with Broken Hill at 8%). In a high-interest-rate environment, this yield acts as a buffer, covering holding costs while the Weighted Score algorithms track capital growth potential.
2. Infrastructure Correlation
There is a direct link between our high-ranking suburbs and government spending. Suburbs like Inverell (2,085) prove that high rental yield suburbs are often those undergoing significant structural transformation.
3. Inventory Constraints
The top-ranked suburb, Durack, has an Inventory level of 0.50. Our models heavily weight inventory; when supply is this low, rental prices and property values are forced upward. This is the “pressure cooker” metric that drives capital growth.
