by Sanjeev Sah | Jan 28, 2025 | Market Updates

As an investor, one of the key metrics you should look at when buying an investment property is your total return. This is the annual capital growth plus the rental yield. 

The good news is that, according to CoreLogic, the total return for houses in all capital cities was positive in December 2024. 

This growth was largely driven by a tight rental market and strong capital growth across the capitals. To demonstrate, let’s use houses in Perth as an example:  

High demand for rentals coupled with limited supply put upward pressure on rental rates which boosted gross rental yields. Rental rates in Perth climbed 8.0% for houses year-on-year and gross rental yield ended the year at 4.0%. 

At the same time, low housing stock and strong buyer demand put upward pressure on prices, fueling capital growth. House values soared in Perth in 2024, up 18.7%.