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Regional markets retain rental yield lead over capitals but price growth gap closing

Regional Australia continues to outperform on rental returns, but with capital city price growth accelerating, the long-running regional advantage is beginning to narrow.

Drone aerial photograph of the Kiama suburb of Kiama Downs on the South Pacific Ocean coastline in the Illawarra region on the south coast of New South Wales.
Regional property prices have seen significant growth over the past five years (pictured, Kiama Downs, NSW). (Image source: Phillip Wittke/Shutterstock.com)

Regional property markets have outperformed the capital city markets over the past year for both capital growth and rental yields.

Those regional areas have outpaced the capitals over the past year (7.9 per cent vs 7.4 per cent) and five years (64.2 per cent vs 47.0 per cent), supported by relative affordability and lifestyle appeal, according to new PropTrack data.

Property investors looking for the cash flow to complement capital growth have …

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