What is the average rent in Sydney?

Authored by the expert who managed and guided the team behind the Australia Property Pack

Yes, the analysis of Sydney's property market is included in our pack

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Sydney. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Australian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Sydney, Melbourne, and Brisbane. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What's the current average rent in Sydney for different property types?

Sydney's rental market shows significant variation across property types, with studios commanding approximately $450 per week in inner-city locations as of September 2025.

One-bedroom apartments typically range from $550 to $650 weekly in central areas, while two-bedroom apartments in popular suburbs average $650 to $750 per week. The median rent for all apartments sits at $647 weekly across the metropolitan area.

Houses present a different pricing structure, with the metropolitan average reaching $850 per week. However, premium suburbs like Dover Heights and Vaucluse command extraordinary rents up to $2,823 and $2,800 weekly respectively. The median house rent ranges from $747 to $775 per week depending on location and condition.

Room rentals within apartments average $430 per week, providing a more affordable option for individual renters. This pricing reflects the high demand for shared accommodation in Sydney's competitive market.

It's something we develop in our Australia property pack.

How do average rents vary across different suburbs and areas of Sydney?

Sydney's rental market demonstrates stark geographical disparities, with the premium Eastern Suburbs commanding the highest rents in the metropolitan area.

The most expensive rental locations include Dover Heights at $2,823 weekly, Vaucluse at $2,800 weekly, and Bellevue Hill at $2,350 weekly for houses. These elite suburbs consistently outperform the metropolitan average by 200-300%.

Inner-city suburbs like Surry Hills and Darlinghurst see apartment rents exceeding $700 weekly, while beachside locations such as Bondi and Coogee typically range from $700 to $800 weekly for apartments. These areas benefit from proximity to the CBD and lifestyle amenities.

Outer and western suburbs offer more affordable options, with areas like Parramatta and Blacktown featuring unit rents between $400 and $550 weekly. The rent differential between inner and outer suburbs often exceeds 40-50% for comparable property types.

What is the rent per square meter and how does property size impact total rental cost?

Rent per square meter in Sydney varies significantly based on location, with city centre properties commanding approximately $56 per square meter per month.

Typical apartment sizes range from 45-65 square meters for one-bedroom units, 65-90 square meters for two-bedroom apartments, and 90+ square meters for three-bedroom properties. A one-bedroom apartment in the city centre averaging $3,382 monthly ($780 weekly) for 60 square meters translates to roughly $13 per square meter weekly.

Larger properties generally offer better value per square meter, though total rental costs increase substantially with size. A 45-square-meter studio might cost $25 per square meter monthly, while a 90-square-meter two-bedroom apartment could cost $18 per square meter monthly.

The relationship between size and total cost is not linear, with premium locations commanding higher per-square-meter rates regardless of property size. Properties in prime Eastern Suburbs can cost 50-80% more per square meter than comparable sized units in outer suburbs.

What are the total monthly costs for landlords including all fees and expenses?

Cost Category	Annual Amount (for $650/week unit)	Percentage of Gross Rent
Management Fees	$2,060-$3,480	6.1%-10.3%
Administration	$79	0.2%
Letting Fees	$650-$1,300	1.9%-3.8%
Repairs/Maintenance	$2,540	7.5%
Vacancy Costs	$1,170	3.5%
Landlord Time Value	$1,199	3.5%
Insurance & Taxes	$1,626-$2,127	4.8%-6.3%

How does average rent compare to typical mortgage repayments for similar properties?

Sydney's property market shows a significant gap between rental income and mortgage repayments, creating challenges for investors seeking positive cash flow.

The average mortgage size in Sydney reaches approximately $810,000 as of September 2025, resulting in monthly repayments around $5,000 at current interest rates of 6.3%. This translates to approximately $1,154 weekly in mortgage repayments alone.

In comparison, the median apartment rent of $647 weekly falls substantially short of covering mortgage costs, creating a negative cash flow of roughly $507 weekly before considering other ownership expenses. Even median house rents of $775 weekly leave investors with negative cash flow of approximately $379 weekly.

This disparity means most Sydney property investors rely on capital growth rather than rental income to justify their investment. Properties generating sufficient rental income to cover mortgage payments are typically found in outer suburbs or represent premium properties with exceptionally high rents.

What are the typical yields for each property type and how do they compare to historical averages?

Sydney's rental yields vary significantly by property type, with apartments generally outperforming houses in terms of gross yield percentages.

Units across Sydney average 4.6% gross yield, while houses achieve lower yields at 3.9% on average. The highest-performing suburb for unit yields is Rosehill at 6.2%, while Airds leads house yields at 4.1%.

Historical averages for metropolitan Sydney have ranged between 3.5% and 4.2%, indicating current yields sit slightly above long-term trends. This improvement primarily reflects rapid rent growth outpacing property price increases in certain segments.

Yields typically increase with distance from the CBD, with outer suburbs offering better cash flow opportunities. However, investors must balance higher yields against potentially lower capital growth and reduced tenant demand in these areas.

It's something we develop in our Australia property pack.

How have rents and yields changed over the past year and five years?

Sydney's rental market has experienced substantial growth over recent periods, with house rents increasing 5.6% and unit rents rising 2.8% in the past 12 months ending September 2025.

The longer-term trend shows even more dramatic growth, with houses achieving 9.1% annualized rent increases over the past three years. This rapid growth reflects tight supply conditions and strong population growth driving demand.

Yields have remained relatively stable with a slight upward trend, particularly for units which have outperformed houses. This stability occurs because both rents and property values have increased, though rent growth has marginally exceeded property price growth in certain segments.

Market forecasts predict continued rent increases through 2026, with projections suggesting additional weekly rent increases between $26 and $196 depending on property type and location. This ongoing pressure reflects persistent supply constraints and continued population growth.

What are the forecasts for rents and yields in Sydney over the next one, five, and ten years?

Short-term forecasts for Sydney's rental market indicate continued upward pressure through 2026, with rents expected to increase by $26 to $196 per week depending on property type and location.

One-year projections suggest rent growth will continue at elevated levels, though potentially moderating from the exceptional increases seen in recent years. Vacancy rates are expected to remain below 2%, maintaining pressure on rental pricing.

Five-year forecasts depend heavily on supply delivery and economic conditions, with continued rent growth likely though at more sustainable rates. Population growth and immigration policies will significantly influence demand patterns during this period.

Ten-year projections face considerable uncertainty, though Sydney's status as Australia's largest employment center suggests continued strong rental demand. Infrastructure developments and urban planning decisions will shape long-term rental patterns and yield performance across different areas.

What is the breakdown of vacancy rates across property types and locations?

Area	Vacancy Rate	Market Conditions
Sydney Overall	1.5%	Tight supply, upward rent pressure
Inner Ring	2.0%	Highest competition, premium rents
Middle Ring	1.1%	Tightest supply conditions
Outer Ring	1.7%	Slightly easier for tenants
Premium Eastern Suburbs	0.8%	Extremely tight, luxury market
Western Suburbs	2.2%	Highest availability, affordable options
Beachside Areas	1.3%	Strong demand, lifestyle premium

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Australia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

Who are the main renter profiles in Sydney and what types of properties do they prefer?

Sydney's rental market serves diverse tenant profiles, with couples and solo professionals representing the largest segments of the rental population.

Young professionals typically seek one to two-bedroom apartments near transport links and employment hubs, particularly in inner-city and middle-ring suburbs. Students concentrate around universities, creating strong demand for studios and shared accommodation options.

Families generally prefer houses or larger apartments in middle and outer suburbs, prioritizing school zones and family amenities over proximity to the CBD. This segment drives demand for three-bedroom properties with outdoor space.

The short-term rental market attracts tourists and business travelers, with over 58% of Airbnb listings comprising one to two-bedroom properties. These guests prefer entire apartments or houses rather than shared accommodation.

International relocations contribute significantly to premium rental demand, particularly in Eastern Suburbs and harbourside locations. This segment often accepts higher rents for furnished properties and flexible lease terms.

What are the pros and cons of short-term versus long-term rentals in Sydney?

Short-term rentals in Sydney offer higher nightly rates and pricing flexibility, particularly in tourist-heavy areas like Bondi and Darling Harbour.

1. **Short-term rental advantages:** Higher income potential during peak seasons, dynamic pricing capabilities, personal use flexibility, and premium rates for furnished properties2. **Short-term rental disadvantages:** Intensive management requirements, higher turnover costs, strict city regulations, increased wear and tear, and potential vacancy during off-peak periods3. **Long-term rental advantages:** Predictable income streams, lower management intensity, stable tenant relationships, reduced vacancy risk, and simpler regulatory compliance4. **Long-term rental disadvantages:** Fixed rental rates, limited pricing flexibility, longer vacancy periods between leases, and tenant protection legislation favoring renters5. **Regulatory considerations:** Sydney has implemented strict short-term rental regulations including registration requirements, maximum night limits, and building consent requirements that significantly impact profitability

It's something we develop in our Australia property pack.

How does Sydney's rental market compare with other major global cities?

Sydney consistently ranks among the world's most expensive rental markets, competing with cities like London, New York, San Francisco, and Hong Kong for the highest rents globally.

Rental costs in Sydney often exceed those in major European cities like Berlin and Amsterdam, while remaining slightly below Manhattan and central London rates. However, when adjusted for local income levels, Sydney's rental costs represent a significant portion of median household income.

Yields in Sydney are moderate compared to other global cities, with Berlin and Toronto offering higher yields due to lower property purchase prices relative to rental income. Hong Kong and Tokyo show similar yield patterns to Sydney, reflecting high property values relative to rental returns.

Vacancy rates in Sydney at 1.5% are lower than New York and London but higher than Tokyo and Singapore. This tight supply situation contributes to ongoing rental pressure and limited tenant negotiating power compared to cities with higher vacancy rates.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Relocations WA - Cost of Living Sydney
2. SQM Research - Sydney Weekly Rents
3. Rent.com.au - Rental Market Snapshot
4. Elyment - Sydney's Priciest Rental Suburbs
5. DHA - Property Management Fee Comparison
6. Smart Property Investment - NSW Vacancy Rates
7. Property Update - Rental Vacancy Rates
8. RealEstate.com.au - Rental Market Pressure
9. AOD Project - Average Mortgage Sydney
10. Canstar - Average Home Loan Australia