Lot 709 Bryant St, Coober Pedy, which is etched into the rocky landscape, is listed for $225,000
A quirky outback town where half the population lives underground has stunned property investors by delivering rental returns that dwarf major city performance.
The latest REA Market Trends report shows that Coober Pedy in South Australia has the highest indicative rental yield in the country, with a whopping 17.9 per cent for houses.
Inside the four bedroom dug-out at Lot 101 Kami Rd, Coober Pedy, which was listed for $250,000 but is now under offer
Other towns to make the top 25 list for rental yields were spread across the Northern Territory, Queensland and Western Australia, and were dominated by mining suburbs for houses.
Top performing unit suburbs included some in tourism hotspots, mining and defence towns.
Indicative gross rental yield is a basic measure of a property’s earning potential which is calculated by dividing the annual rental income by the property’s value and then multiplying it by 100 to get a percentage figure.
Coober Pedy, which is known for its underground homes, called “dug-outs”, came out on top with the median house price in the opal capital just $76,250, while the median weekly rent is $263.
According to the Coober Pedy tourism website, approximately 50 per cent of the towns population of around 2500 live underground.
“The soil in the Coober Pedy hillside is stable enough to allow huge ceiling spans in rooms and it is not unusual for a mining family to buy an adjoining property and tunnel to link two dwellings, or even three or four,” the website says.
“Some mansion-style homes spread up to 450 square metres underground.”
Currently on the market for $195,000 is a three bedroom underground house which is currently earning $290 a week in rent.
The kitchen inside Lot 1914 Monument Rd, Coober Pedy, which is curreently earning $290 a week
A renovated three-bedroom dug-out is listed for $225,000 and has a rental appraisal of $260 a week.
Lot 709 Bryant St, Coober Pedy, is listed for $225,000
A four-bedroom dug-out described as ‘Alladin’s secret hideaway’ that was listed for $250,000 is now under offer.
Lot 101 Kami Rd, Coober Pedy, is described as “Alladin’s secret hideaway”
According to SQM Research, the vacancy rate in Coober Pedy in December was just 0.4 per cent.
Andrews Property Regional South Australia agent Misty Mance, who sells in Coober Pedy, said buyers were both investors and owner occupiers.
“Stock is quite limited and I am selling to a few people who are renovating the dug-outs so hopefully we get some more rentals,” she said.
Ms Mance said they were selling and renting to “all walks of life”, from singles and families, to people looking for cheaper accommodation away from the cities.
“Some work in the opal mines, others work for local businesses, some are on Centrelink,” she said.
“Rents are between $200 and $300, maybe a bit more, so they are getting more out of their paychecks, and Coober Pedy has a lovely community spirit.
“The dug-outs also sit around 24C year-round so you are saving on heating and cooling.”
Ms Mance added that the population sat around 1800 but often ballooned to around 3500 during “the season”, which runs from March/April to October/November.
“During that time, a lot of hobby miners come to town when it is a bit cooler to run machinery during the day,” she said.
“Whereas in summer it can be 47C and you either work during the morning or evening.”
The hottest day ever recorded in Coober Pedy was 48.3C, which was recorded on December 20, 2019.
Coming in second place with a rental yield of 12.89 per cent was Berrimah in the Northern Territory.
The Darwin suburb has a median house price of $345,000 and a weekly median asking rent of $855.
In third place was Pioneer, a suburb of Mount Isa in western Queensland, with a rental yield of 12.03 per cent.
The vacancy rate was 1.6 per cent in Mount Isa during the September quarter according to the REIQ.
Rounding out the top five were Millars Well (12.02%) and Southern Cross (11.91%), both in Western Australia.
By comparison, the lowest rental yields can be found across a range of suburbs in Sydney, Geelong in Victoria, Adelaide, and inner-city Brisbane.
Seven of the top worst performing house suburbs for rental yields were located in NSW, while the top five worst performers were led by Luddenham in Sydney’s southwest with a rental yield of just 1.29 per cent, Bellevue Hill in Sydney (1.45%) and Northbridge in Sydney (1.47%), Collinswood in Adelaide (1.47%) and Hyde Park in Adelaide (1.49%).
Sydney dominated the list of suburbs iwth the lowest rental yields. iStock
Meanwhile, for units, nine of the top 10 suburbs with the highest rental yields in the country were in Western Australia, led by Newman.
Located in the Pilbara region, an area with a low vacancy rates and close to mining activities, the median unit price is $209,000 while the median weekly rent is $550.
That equals a indicative gross rental yield of 13.68 per cent.
Hot on its heels is Pegs Creek, also in the Pilbara, where the median unit price is $500,000 and the median weekly rent is a whopping $1150.
This one bedroom unit in Pegs Creek is listed for $1000 a week
Rounding out the top five were Boulder and South Hedland, both with a rental yield of 11.69 per cent, and Port Hedland (10.62%).
Outside of Western Australia, Sadadeen in the Northern Territory came in eighth spot with 9.88 per cent.
Other high performers in the top 25 for rental yields included Middlemount and Moranbah in Queensland, Whyalla Norrie in South Australia and Seymour in Victoria.
Seymour is close to the Puckapunyal Army Training Area, Victoria. Picture: Department of Defence
Both Queensland suburbs are located in the mining resources belt, while Whyalla Norrie and Seymour are both agricultural areas with significant defence training facilities.
But in a twist, while Moranbah’s vacancy rate is substantially higher than the otherwise extremely tight state average, it continues to be a top performer for rental yields due to its proximity to mining hubs.
The latest REIQ Vacancy Report, released at the end of last year, revealed that the Isaac region, which includes Moranbah, had the highest vacancy rate in the state at 5.5 per cent, compared to the state average of just 1 per cent.
MORE: 50 ‘unsexy’ suburbs making Aussies rich that the hype ignores
Big Aus bank delivers triple rate hike shock
$398k wiped out: Aus suburbs where home prices fell the most
This one bedroom unit in Moranbah is listed for $600 a week
Infinity Property Specialists principal Marie Dowie, who sells in Moranbah, said rental yields were still high despite the higher vacancy rates.
“Because it is mainly mines that subsidise the rent so market value has always been at that higher mark, with rental yields abive 10 per cent,” she said.
“The vacany rate is always higher at this time of year because Moranbah is a transient town and people tend to leave at the end of the school year and start to come back around now.
“The vacancy rate will start to tighten again, and will probably drop by about half by March.”
Ms Dowie said that about 80 per cent of buyers were investors, mostly from Sydney and Melbourne, but also from Brisbane and Perth,
“Some are rentvestors attracted to the returns, but there has also been quite a lot of capital growth since the resources downturn,” she said.
“Prices have doubled in the last 10 years but they are still not quite back to the crazy prices of 2012 … they are still about 30 per cent off that price high.”
The median house price in Moranbah is currently $394,944 with a median asking rent of $700 a week, according to the latest REA Market Trends report.
Ten years ago, the median sale price was just $175,000 after peaking at around $750,000 in 2012.
***
TOP 25 SUBURBS FOR HIGHEST RENTAL YIELDS – HOUSES
(Suburb/State/Median Price/Median Rent/Rental Yield)
Coober Pedy SA $76,250 $263 17.90%
Berrimah NT $345,000 $855 12.89%
Pioneer QLD $194,500 $450 12.03%
Millars Well WA $562,500 $1300 12.02%
Southern Cross WA $155,000 $355 11.91%
Menzies QLD $210,000 $470 11.64%
Collinsville QLD $201,500 $450 11.61%
Newman WA $360,000 $795 11.48%
Kambalda East WA $170,000 $370 11.32%
Baynton WA $780,250 $1650 11%
Nickol WA $680,000 $1375 10.51%
Pegs Creek WA $581,250 $1175 10.51%
Mornington QLD $237,500 $480 10.51%
Coolgardie WA $198,500 $400 10.48%
Kambalda West WA $200,000 $400 10.40%
Townview QLD $241,000 $475 10.25%
Champion Lakes WA $382,000 $750 10.21%
Sunset QLD $258,000 $500 10.08%
Henley Brook WA $389,000 $750 10.03%
Port Hedland WA $785,000 $1500 9.94%
Soldiers Hill QLD $264,500 $500 9.83%
Dysart QLD $240,000 $450 9.75%
South Boulder WA $300,000 $560 9.71%
Bulgarra WA $600,000 $1100 9.53%
***
TOP 25 SUBURBS FOR HIGHEST RENTAL YIELDS – UNITS
(Suburb/State/Median Price/Median Rent/Rental Yield)
Newman WA $209,000 $550 13.68%
Pegs Creek WA $500,000 $1150 11.96%
Boulder WA $238,000 $535 11.69%
South Hedland WA $317,000 $713 11.69%
Port Hedland WA $440,607 $900 10.62%
Broome WA $450,000 $888 10.26%
Beresford WA $175,000 $340 10.10%
Kalgoorlie WA $293,000 $560 9.94%
Sadadeen NT $292,000 $555 9.88%
Middlemount QLD $210,000 $390 9.66%
South Kalgoorlie WA $270,000 $500 9.63%
Bulgarra WA $352,500 $650 9.59%
Cable Beach WA $435,000 $800 9.56%
Moranbah QLD $384,000 $700 9.48%
Somerville WA $339,500 $600 9.19%
Whyalla Norrie SA $141,750 $2509.17%
Karama NT $300,000 $500 8.67%
Wagaman NT $291,000 $480 8.58%
Larapinta NT $270,000 $440 8.47%
East Side NT $284,750 $460 8.40%
Coolalinga NT $305,000 $490 8.35%
Woodroffe NT $300,000 $480 8.32%
Seymour VIC $231,750 $370 8.30%
Withers WA $267,500 $423 8.21%
Gray NT $318,000 $500 8.18%
(Source: REA Market Trends January 2026)
English (US) · 