What is Capital Growth?
Capital growth is the increase in a property's market value over time — what your asset is worth, as opposed to what it earns you in rent (yield). Over long horizons, capital growth drives most Australian property returns.
Why it matters for you
High-growth locations (inner capital cities, tight supply) typically offer lower rental yields. High-yield locations (regional, outer suburbs) often offer weaker growth. Most investor strategies lean one way or the other — rarely both.
Last updated: April 2026