Domain real estate: Rental costs for region

Photo: FILE
Photo: FILE

MUDGEE has topped the region for the most expensive average rental prices with good yields possible for savvy investors.

New data released by Domain shows the average rental costs for homes and units across the region and how they have changed in the past 12 months.

Mudgee has the highest average rents for a home at $370 a week which was up 5.7 per cent compared to the same time last year.

This was followed by $350 in Orange (up 6.1 per cent) and Dubbo (up 4.5 per cent), with Bathurst coming in fourth at $320 (up 3.2 per cent).

The cost of renting a unit in the same locations was: $308, $250 and $260 respectively.

Renting a home in other parts of the region was cheaper, the data shows, with renters paying an average of $310 a week in Oberon, followed by Lithgow ($300), Blayney ($280), Parkes ($270), Young ($265) and then Forbes and Cowra at $250.

The only place that experienced a fall in average house rental prices was Young with a 1.9 per cent drop compared to one year ago, however median unit rents increased by 11.1 per cent to $200 a week during the same time period.

Rental yields for investors varied from 4.3 to 6.1 per cent for a home across the region which is significantly more than the falling Sydney market.

Declining property prices in Sydney have led to lower rental yields, with the Domain Group reporting last month that yields had remained relatively flat year-on-year at 3.15 per cent for houses and 3.85 per cent for apartments.

The highest yields in the region were in Cowra (6.1 per cent), followed by Forbes (six per cent), Parkes and Young (5.7 per cent) and Oberon (5.6 per cent).