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New figures have revealed just how difficult 2015 was for landlord returns.
According to a new report from CoreLogic RP Data, last year featured the weakest rental conditions ever seen.
Only two capital cities saw gains in rental yields in 2015, while the rest of the country recorded losses.
In Adelaide, house yields fell from 4.3 per cent in December 2014 to 4.1 per cent in December 2015, while unit yields rose from 4.7 per cent to 4.9 per cent.
Canberra houses fell from 4.2 per cent to 4.0 per cent and units rose from 4.9 per cent to 5.1 per cent over the same period.
In Brisbane, houses fell from 4.4 per cent to 4.3 per cent, while units dropped from 5.5 per cent to 5.2 per cent.
Hobart houses fell from 5.2 per cent to 5.1 per cent, while units dropped from 5.8 per cent to 5.3 per cent.
Sydney houses fell from 3.5 per cent to 3.2 per cent and units dropped from 4.4 per cent to 4.1 per cent.
In Perth, houses fell from 4.0 per cent to 3.8 per cent and units fell from 4.7 per cent to 4.3 per cent.
Melbourne houses dipped from 3.2 per cent to 2.9 per cent, while units fell from 4.2 per cent to 4.0 per cent.
In Darwin, houses dropped from 6.0 per cent to 5.3 per cent and units fell from 5.9 per cent to 5.1 per cent.
CoreLogic RP Data head of research Tim Lawless said the low yields correspond with reduced rental growth across the country.
“With dwelling values rising substantially more than rents in Sydney and Melbourne, this ongoing effect has created a compression in gross rental yields to the extent that gross yields in these cities are now only marginally higher than record lows,” Mr Lawless said.
