Shares vs. property: Which Australian states and ASX stocks are delivering the best passive income?

We reveal the states and territories offering the best rental returns and the stocks offering the highest dividend yields today.

real estate asx share price represented by growing coin piles next to wooden house

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

With shares vs. property, investors have more than 2,200 ASX stocks to choose from, and they are increasingly looking outside their own neighbourhoods for the best investment property opportunities.

With all these choices available, how do you decide which ASX stocks to buy? Or which Australian states and territories to consider for property investment?

We hope to help.

In this article pitting ASX shares vs. property, we look at the passive income aspect of investment.

We're going to compare the current gross rental property yields on offer around the country vs. the highest current dividend yields that ASX 200 stocks are trading on today, as reported by CommSec.

Shares vs. property on passive income

Skyrocketing rents across Australia since COVID have certainly upped the passive income landlords are receiving from their investment properties.

Over the past three calendar years, rents have increased by almost 30%, according to CoreLogic data.

CoreLogic's national median rent reached $601 per week in December. This equates to a median annual passive income of $31,252 a year. That's $8,000 higher than where it was in August 2020.

Here are the current rental yields or passive income available to property investors today.

Rental returns of houses

Darwin and regional NT offer the best rental yields on houses, followed by Perth and regional WA.

MarketGross yieldMarketGross yield
Sydney 2.7%Regional NSW4%
Melbourne3.1%Regional VIC3.9%
Brisbane3.6%Regional QLD4.5%
Adelaide3.7%Regional SA5%
Perth4.4%Regional WA6.2%
Hobart4.2%Regional TAS4.5%
Darwin6.1%Regional NT6.8%
Source: Hedonic Home Value Index, CoreLogic, March 2024

Rental returns of apartments

Darwin and regional WA offer the best rental yields on apartments, followed by Perth and regional SA.

MarketGross yieldMarketGross yield
Sydney4%Regional NSW4.4%
Melbourne4.5%Regional VIC4.7%
Brisbane5.1%Regional QLD4.9%
Adelaide5%Regional SA5.1%
Perth6.2%Regional WA8.7%
Hobart4.6%Regional TAS4.9%
Darwin7.4%Regional NTn/a
Source: Hedonic Home Value Index, CoreLogic, March 2024

Which ASX 200 shares offer the highest passive income?

We ran a stock screener over the S&P/ASX 200 Index (ASX: XJO) on CommSec to determine which shares are offering the best passive income via the highest current dividend yields.

Remember, dividend yields can change dramatically year to year. So, you'll need to do much more research to see how reliable the passive income is from each of these stocks, if any appeal to you.

Here are the top 10 ASX 200 shares for current dividend yields, according to CommSec.

Top 10 ASX 200 shares for passive income Current dividend yield
Fortescue Ltd (ASX: FMG)11.6%
New Hope Corporation Ltd (ASX: NHC) 8.3%
Helia Group Ltd (ASX: HLI) 8.1%
Fletcher Building Ltd (ASX: FBU) 8%
Insignia Financial Ltd (ASX: IFL) 7.8%
Whitehaven Coal Ltd (ASX: WHC) 7.7%
Magellan Financial Group Ltd (ASX: MFG) 7.4%
Charter Hall Long WALE REIT (ASX: CLW) 7.3%
Charter Hall Retail REIT (ASX: CQR) 7.2%
Nickel Industries Ltd (ASX: NIC) 7.2%
Source: CommSec

Motley Fool contributor Bronwyn Allen has positions in Magellan Financial Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

Stressed thoughtful old female general practitioner doctor physician looking in distance, considering difficult medical problem solution or illness treatment, working on computer in clinic office.
Healthcare Shares

How much do you need to invest in CSL shares for $8,000 in annual dividends?

CSL's dividends are exponentially more valuable for long-term investors.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Dividend Investing

Why is the Soul Patts share price falling today?

Is today's decline actually good news?

Read more »

A woman has a thoughtful look on her face as she studies a fan of Australian 20 dollar bills she is holding on one hand while he rest her other hand on her chin in thought.
Dividend Investing

Is Telstra stock a smart buy right now for dividends?

Would I buy Telstra shares for that hefty dividend yield today?

Read more »

Three women cruise along enjoying ice-creams in the sunshine.
Dividend Investing

The best dividend stocks in Australia right now

Growth and stability are just two of the reasons why I think these are the top ASX 300 stocks for…

Read more »

Man holding a calculator with Australian dollar notes, symbolising dividends.
Dividend Investing

Buy these ASX dividend shares with 6% to 8% yields: Bell Potter

Big yields could be coming for owners of these shares.

Read more »

Broker looking at the share price.
Dividend Investing

Goldman Sachs names 3 strong ASX 200 dividend shares to buy

Here's why the broker is bullish on these dividend shares.

Read more »

A mature aged man with grey hair and glasses holds a fan of Australian hundred dollar bills up against his mouth and looks skywards with his eyes as though he is thinking what he might do with the cash.
Dividend Investing

If I invest $10,000 in New Hope shares, how much passive income will I receive?

This coal mining stock has dished out some pretty impressive dividends in recent years, but will this continue?

Read more »

Different Australian dollar notes in the palm of two hands, symbolising dividends.
Dividend Investing

4 ASX All Ords shares with ex-dividend dates this week

Time is running short to grab the dividend payouts from these four ASX All Ords stocks.

Read more »